AI & INSURANCE: A GOOD OR BAD THING FOR CLIENTS?

It seems like these days you can’t read an article or listen to a story without AI being mentioned. Whether we like it or not, AI is all around us and impacts many types of industries and involved in some way, shape or form in our daily lives.  So it is not surprising that AI is having an impact in the insurance industry.  Here are some areas that AI is making a difference:

1.        Claims Processing – AI is streamlining the claims process by automating certain tasks.

This reduces the time it takes to handle claims and improves accuracy. For example,

you can upload photos to the insurance company website and AI can analyze and

assess the damage thus speeding up the process.

2.        Customer Service – AI powered virtual assistants can provide 24/7/365 customer

support, answer queries and assist with policy management.  This improves customer

satisfaction as clients can contact insurance companies at their leisure and not

necessarily during “normal business hours”.

3.        Underwriting – AI enhances underwriting by analyzing vast amounts of data to assess

the risk more accurately that sometimes human may miss. This leads to more precise

pricing of policies and helps that could help clients’ insurance premiums.

4.        Fraud Detection – AI helps detect fraudulent claims by identifying patterns that might

indicate fraud.  Understanding and detecting fraud patterns could lead to denying

fraudulent claims and ultimately keep consumers insurance costs lower.

5.        Personalized Policies – AI can help analyze a customer’s risk factors, preferences,

behaviors, etc that will allow insurance companies to tailor coverage that meets a

customer’s specific needs. This could save a client money for unnecessary insurance

and promote customer satisfaction.

6.        Operating Efficiency – AI can improve an insurance company’s operating expenses by

automating repetitive tasks, optimizing workflows and reducing administrative costs. 

Some of the savings could be passed along to customers.

While AI offers numerous benefits, there are some challenges that insurance companies need to consider in order to maintain good customer relationships and satisfaction.  One example is data privacy. The more customer data that is collected, the more an insurance company runs the risk of getting hacked or someone stealing the data.

As AI continues to develop, it will continue to transform the insurance industry, making it more efficient, customer-oriented and innovative.  However, if you want to talk to a human, CH will always be there to take your call, take a meeting.  AI can help in many areas but will not replace the CH philosophy of having conversations with our clients!

If you would like to have a conversation, don’t hesitate to call any of the CH Team.  We promise to answer the phone!