AI Delivers New Transformative Benefits to Personal Lines
By Heather Turner, ReSource Pro —
Personal lines carriers face a range of challenges and mounting pressures. Rising premiums and customer service issues are leading to increased insurance shopping, while inflation causes auto and home repair costs to soar. Complicating these issues are more frequent and severe weather events due to climate change.
For better risk evaluation and more precise underwriting and pricing decisions, insurance carriers need to embrace AI solutions. This involves expanding the risk evaluation criteria, integrating aerial and geospatial data, and leveraging third-party data sources for more detailed modeling. AI and predictive models can also help improve claims handling, both for reserving and anticipating outcomes. Lastly, leveraging AI can help carriers improve claims outcomes and customer experiences when losses do occur.
AI in Personal Lines
A new research report from ReSource Pro examines carriers’ AI strategies within personal lines, as well as the opportunities across functional business areas. Personal lines carriers see huge potential in underwriting inspections. Compared to the previous year, 27% more carriers expect AI to improve this process.
Insurers started exploring remote solutions like drones and infrared cameras almost ten years ago. By 2018, they were on the front lines of hurricane recovery. During pandemic lockdowns, aerial and geospatial images became the primary option for external risk inspections. Today, outside views of homes combined with self-service internal inspections help improve risk analysis and pricing accuracy.
On the claims side, AI is already helping to save on costs via fraud monitoring and detection. 60% of carriers find AI valuable for this specific use.
Insurance fraud costs US customers and businesses $79 billion dollars yearly, according to the Coalition Against Insurance Fraud.
Personal lines carriers can save millions a year using AI solutions to automate identification of claim fraud. For example, AI enables the creation of systems that quickly identify fraud indicators and notify staff, allowing them to investigate early and prevent costly false claims.
Unlock more AI knowledge with our research report
There’s more to learn than these real-world examples. Download our new research report below for a detailed look at the current state of AI for P&C personal lines carriers.
Read now: AI in P&C Personal Lines: Carrier Plans, Perceptions, and Potential for High Value Use Cases. Or, for a deep dive from the experts themselves, check out our recent webinar, where Mark Breading and Meredith Barnes-Cook break down the research for you in detail:
Please visit https://youtu.be/6M_4rGGBU-A if the embedded video player doesn’t work.
About SMA, a ReSource Pro company
At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformational journeys by leveraging our forward-thinking insights, deep vendor knowledge, and vast industry expertise. Strategy Meets Action is an advisory firm that works exclusively with insurers, MGAs, and vendors in the P&C market. For more information, visit www.strategymeetsaction.com.
About ReSource Pro
ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com.
SOURCE: Strategy Meets Action (SMA)
