The increasing impact of digital technologies provides an enormous amount of data to organizations and opening up various possibilities for big data and analytics. Analytical models can predict results, identify patterns, and highlight outliers in a host of other cases.
Today, AI has become the buzzword in the technology world and is the latest disruptor in the world that offers endless opportunities for the industry.
The use of artificial intelligence in the insurance industry will change the way in which companies operate. Each of the multifaceted aspects of AI—machine learning, data analytics, natural language processing (NLP), robotic process automation—can positively impact the decision-making in the insurance sector.
With natural language processing, insurers can extract information from unstructured data, such as text, and transform it into structured data within the first notice of loss documents. For brokers, AI can extract and classify information, thus automating the laborious data intake process and enabling subscribers to perform a go- no go analysis more quickly. Customer apps are now equipped with AI-powered chatbots that can engage consumers in meaningful conversations to understand and address their needs. NLP-enabled insurance companies provide a robotic chat agent to serve customers at any time of the day. The Watson APIs of IBM is an example of a platform that provides a complete package for a true conversational agent.
AI can predict the payment amount for auto claims with computer vision, significantly reduce the time between submission and payment of claims, and at the same time, improve customer experience. Speed and success in settlement of claims is a critical factor in the efficiency of business insurance.
Image and video analysis could also form a key application for the inspection of commercial property. Agents usually upload property images or videos as a part of their risk inspection report. Image and video analyzes could analyze these evidence and assess the risk automatically. This allows insurers to give precise rates to cover the risk.
The AI-powered decision-making system is going to be a future digital sales consultant. The next-generation digital advisor can propose products to the buyer on the basis of conversations and data gathered through bots. Digital consultants can offer existing customers the next best product to increase cross-selling opportunities.