Artificial Intelligence in Insurance: Benefits of AI in Insurance

It’s estimated that by 2035, AI will boost business profitability by 35% on average, and the insurance industry is taking notice. 63% of ...

It’s estimated that by 2035, AI will boost business profitability by 35% on average, and the insurance industry is taking notice. 63% of insurers believe that their industry will be transformed by artificial intelligence, and many companies are already taking advantage of the technological advancements to improve their business.

AI technology such as natural language processing, machine learning, deep learning, and computer vision are helping to speed up tasks, efficiency, and customization.

How Artificial Intelligence (AI) is Changing the Insurance Industry

Here are the five top ways AI is changing the insurance industry for the better:

1. Fraud Prevention

More than $40 billion in non-health insurance fraud is committed each year according to the FBI. Using AI can help insurance companies prevent this fraud in the future since the technology combs through large databases to spot irregularities and identify risks.

2. Automating Claims Processing

Reduce manual and repetitive tasks for your team by handing it over to a robot. Natural language processing technologies such as chatbots can reduce administrative tasks. You can also use smart cameras to capture and assess damages, which also speeds up the claims process.

3. Customized Plans

AI technology allows consumers to build their own insurance policies, rather than having to choose from a basic plan. One example of AI is helping customize policy is a usage-based car insurance plan, which allows the driver to use a telematics device in their car to track driving behaviors.

4. Customer Satisfaction

AI can help give you more satisfied customers by improving speed, communication, and service offerings. Chatbots and apps allow users to get help quickly and efficiently, no matter what time of day or night it is. As a bonus, these online tools allow companies to save money on staffing.

5. Optimized Operations

You can streamline internal tasks using AI technology. Natural language processing and chatbots help a customer get help fast, and they navigate them towards the correct department or service offering that can get the job done fastest. Rather than replacing workers, AI simply allows workers to have more time to focus on valuable tasks as opposed to manual ones.

For a deeper dive into how AI is reshaping the insurance industry, check out the Infographic from The Zebra below!