AI-based software is great in menial, repetitive tasks that take a toll on human workers and eat up a lot of production time. The insurance industry, for one, has lots of manual routine tasks that can be a pass for human errors. That’s just one of the reasons why insurance processes should be automated with the help of AI and machine learning.
AI-based Software Benefits for Insurance
Streamlined Processes = Time and Cost Reductions
Insurance processes involve plenty of data and a high potential for errors. Automation is an efficient way of collating and processing all that data and taking those repetitive tasks like manual input of customers’ information into different systems and manual computations. Using AI-based software for such routine guarantees accurate results in significantly less time than it’s usually required by an employee. As a result you need to hire less employees to perform these activities.
Improved Customer Experience
AI technology is widely used in conversational bots (chatbots) that already know customers better than humans. Such software helps automate the most popular customer services interactions. The market is full of different chatbots. But it’s very essential to choose or create the chatbot that will be Insurance focused. It will win more value for customers and Insurance business owners.
High performance is a direct result of increased quality and speed of Insurance claims processing and reduced fraudulent claims, because it’s tracked and alerted by the AI-based claims management system. And again as one more result here we get cost and time saving for Insurance business — automating menial tasks, claims processing, fraud detection.
Secure Business Management
Developing an insurance agency management system is essential for those Insurance companies that have big plans. All insurance businesses deal with high security and accurate data that is the cornerstone of the whole industry. Ready-made and custom insurance management agency platforms are able to cover the essential security and data accuracy needs.
AI Implementation Use Cases in Insurance
Claims registration and processing
When clients submit their insurance claims, a lengthy process ensues. On the side of your clients, they would want fast, uncomplicated service. Fast and uncomplicated could be a tall task if everything was done manually.
The whole process would involve processing large volumes of data to support these insurance claims. Further review, research, and investigation are also needed to substantiate filed claims. These add to the exhaustive amounts of data involved in just this one area of insurance. AI helps automate this repetitive and error-prone task and save a company time and costs.
Also worth noting is the possibility of fraudulent claims. While most claims will be legitimate, there will be those that are questionable and downright fraudulent. Various insurance software can detect fraud, process data quickly, and ensure a quicker, smoother transaction that will satisfy both the insurance company and their clients. Here you can get to know the cost of the Insurance claims management system.
Underwriting involves evaluating a client’s risk profile versus the policy he wants or has applied for. This is the part where an insurance company will look into a client’s risk profile: are they healthy, do they smoke or drink excessively? How much is a client’s worth financially—how much do they make currently versus how much their benefits would be — all the things needed to compute insurance premiums.
When insurance underwriting is automated, it can save time spent on collecting data and putting them into the various fields in the underwriting forms. These fields will auto populate. Systems can also produce reports based on the data collected and make recommendations based on previous claims or losses by the client. It will shorten the time involved in completing the underwriting process.
Policy management (admin and servicing)
Basically, the whole process from pre-underwriting to underwriting to servicing is ripe for automation. The entire process currently involves a lot of manual, labor intensive, and repetitive tasks.
Loads of documents that include particular information about the insurer are generated by insurance companies on a regular basis, and creating them manually gives it so much room for errors. Document management systems enriched with machine learning help extract data needed from various sources and automatically update forms — and therefore create statements and documents without mistakes.
AI Models for Insurance
Typically, an Al-based software can either be trained from scratch using a Machine Learning framework, or be bought as a pre-trained model. These pre-trained models are typically specialized in a certain area such as voice or image recognition, text analytics, biometrics, sentiment detection, decision management or document processing, etc.
The system analyses the records and results and then suggests the appropriate options. For example, we have developed a recommender engine that assessed client’s information and suggested the best fitting insurance plan.
Text Analytics and NLP
Text analytics techniques allow analyzing the text of insurance claims, settlement notes, etc. NLP can be of help in detecting claims that are potentially liable to subrogation, social media analysis in order to get early insights on claims from the company’s portfolio (especially useful for corporate insurance) and many other tasks involving various forms of text as an object of analysis.
Machine learning helps classify data points as either normal or anomalous. For example, common patterns are sometimes detected in claims from a multiple accident, which can be an indicator of organized fraud.
Automated Decision Management
Real-time automated decision-making is a reality thanks to advances in artificial intelligence and machine learning and consumer demand for instant services. It means that insurers have no option but to use automated means to rapidly process information for automated decision making.
Natural Language Generation (NLG)
Natural language generation (NLG) offers great potential for the automated generation of reports and contracts in the Insurance field. The use of such AI-based software offers a great scaling potential for these tasks and enables the maintenance of a consistently high quality.
Intelligent Document Processing (IDP)
Insurance companies can also benefit a lot from document automation. Intelligent document processing helps effectively process the repositories of day-to-day paperwork and the unstructured data they contain. And validate the received data.
With the amount of data currently being collected from smart devices like our phones, fitness trackers, and the GPS systems in our cars, insurance companies can now get a better picture of their clients’ risk profiles. This makes insurance premiums more accurate.
To Sum It Up
Automation in the Insurance industry improves customer performance, cuts operational costs, improves employees performance, speeds up the processes and as a result wins more clients for insurers. In the years to come, as more advances in the sphere of artificial intelligence are being made, the landscape of the insurance world will also change. Choose the right tech partner to bring AI-based automation into your Insurance business.