Artificial Intelligence Is Improving Dramatically Each Year
There have been dramatic improvements in artificial intelligence in just the past few years, to the point that it is now having a tremendous impact on a variety of industries. It is estimated that three out of every four insurance executives are looking to AI to dramatically transform the insurance industry in just the next few years. This will be a welcome feature for many companies trying to cut costs wherever they can.
Many see a number of ways this new technology can actually facilitate the claims process. To begin, a robotic process can begin to automate the process of data entry and validation. This can also track the compliance with current industry standards and streamline the overall claim process. There are quite a few manual steps involved in the insurance claims process at the current time, and artificial intelligence can begin to remove those.
With steps being taken towards automation, skilled adjusters will then be more to free to lend their expertise to the company, where it is most needed. Artificial intelligence can also eliminate many of the repetitive and manual tasks that plague the claims process while striving to establish a better sense of consistency.
Once a machine learns what it is expected to do, it can begin to predict some insightful analysis and modeling. There is even a way that AI can begin to help with the skills gap that continues to grow in the workplace. A majority of insurance carriers believe that humans and machines can work together to develop more knowledge and exponentially increase productivity.
AI Offers Assistance With Many Types Of Insurance Claims
Artificial intelligence makes use of natural language processing. This means that the system can take over when someone asks it for a quote related to insurance coverage. It can do this by conducting a series of interactions with social media chatbots. As such, it is likely to foresee AI being able to file an insurance claim at some point in the not so distant future.
AI Can Speed Up Customer Service
Service-related expectations are rapidly changing as insurance models become more focused on the customer. Customer service is increasingly a crucial part of the business model. This is reflected by just how easy it is for consumers to switch insurance providers if they have a less than positive experience with one. AI technology can enhance the customer service processes by anticipating customers needs faster and more efficiently.
One recent customer satisfaction survey revealed that the speed of a claim settlement was viewed as the most important part of the customer service experience. The transparency of the overall claim process being a close second. What STP has already done is noticeably reduce the cycle times for claims. This has been accomplished because customer data has been standardized, reducing the risk that errors will occur during the process.
This also helps to ensure that each customer receives the constant level of great service that they expect from their insurance company. Data is also assembled automatically from a variety of sources using this same AI logic, so straightforward claims can be handled with ease. This means happier customers and retained business.
One Day AI Technology May Eliminate Human Interaction During The Claim Process
Technology will increasingly be used to further automate the claims process from beginning to end. The ultimate objective is to eliminate the need for any human intervention on the part of the insurance carriers when it comes to processing a claim. The “rules engine” of the process will be able to judge the contents of a claim for the potential for fraud.
It will be able to fast track claims upon which no red flags come up right away. These would then be eligible for a much faster payout. Customers will also be kept informed throughout every part of the process, right up until the point that they receive their money. Claim processing will be revolutionized by artificial intelligence in the coming years.
Underwriting Will Soon Be Accomplished Mainly By Machines
As you can imagine, there is a mountain of insurance related data and experiences that machines can now draw upon to make decisions. This will only continue to increase as time goes on, making certain patterns and relationships contained within this data more noticeable to an AI system. This goes far beyond the potential of human intricacies, and it reduces many of the errors that people typically make.
With machines getting involved in the process, they will be able to analyze underwriting information to make a quick decision about coverage. This will also help determining pricing models and offering less risky policies, which will save insurers in the long run.
Naturally, there are some limitations to this technology as it currently stands. Machines must learn to adapt to virtually any situation possible. This will take some more time before they can be fully relied upon to accept all data sets and the underwriting rules that are in place. Because of this, there are some complex cases that machines will not currently be able to deal with. Humans will still need to be involved at some level to analyze more complex data and abnormal underwriting situations.
Data Is King For Life Insurance Providers
When it comes to life insurance, data is the most important tool that machines can have. The more data made available, the more precise the decision on coverage can be made. Smart, AI-driven machines are able to quickly analyze complex sets of data that would take the average human days or months to do. This is important because it can often take years to actually realize the result, positive or negative, of any given underwriting decision made today.
A great deal can be learned about the customer during the application process. Machines today can begin to learn more about the health history of the applicant. This includes their lifestyle issues and detailed risks they present to a life insurance company. There are already some areas where the machines will have 15 years or more of historical data to pull form, given the information of more than one million different applicants.
This is what will allow artificial intelligence powered machines to make faster and more informed decisions. As artificial technology begins to be incorporated into more companies around the globe, the focus should be on value to the customer. This is the most important variable in the equation. If this technology is used correctly, the overriding benefits should be seen in terms of increased levels of customers satisfaction. It will take some time to get there, but progress continues to be made each and every year.