By Al Mattin -
Insurance has never been exciting, but with the rapid pace of digital transformation, insurance companies are increasingly turning to artificial intelligence (AI) to stay ahead of the curve and provide innovative new services. AI is revolutionizing almost every facet of the insurance industry, enabling insurers to streamline their operations, personalize their services, and enhance the customer experience.
By leveraging the power of AI, insurers are able to unlock new insights from their data, automate routine tasks, and ultimately drive innovation and meet rapidly-evolving customer demands in a highly competitive market.
How Insurance Digital Transformation Benefits Insurance Customers
Like every other industry, the insurance sector hasn’t been immune from the effects of digital transformation and AI. This means insurers can now provide a more personalized, streamlined, and efficient experience for their customers, resulting in higher satisfaction rates and increased loyalty.
Behind the scenes, insurers can use AI to more quickly process vast amounts of data, identify insights and anomalies, and make data-driven decisions to shape new services, policies, and treatments. Here’s how:
Enhanced Data Analytics
AI technology is dramatically changing how the insurance industry handles the vast amount of data they have at their fingertips, enabling insurers to process it more efficiently and effectively than ever before.
This has allowed insurers to provide more personalized services, consolidate data from multiple sources, and develop new insights that can help them make better decisions about their products and strategic investments. By using AI to analyze data in real-time, insurers can quickly identify trends and patterns that can help them tailor their services to the unique needs of each customer or find trends otherwise hidden among lakes of data.
Faster Claims Investigation and Processing
AI also allows insurance companies to automate core elements of their operations, accelerate how they serve their customers, speed up processing time, and free up more time for their staff to focus on more complex cases.
For example: imagine a situation where a customer is driving to work and gets into a fender bender. After taking a photo of the accident with their phone and sending it to their insurance company's mobile app, an AI system is able to initiate and initially process the claim using computer vision to assess the damage, determine the best course of action, and provide a preliminary estimate for repairs.
This helps the customer get the responsiveness they need, get their car repaired faster, and build trust with their insurance providers.
In fact, one insurance company COO expects the percentage of insurance applications that can benefit from AI to increase dramatically. “We believe with technology and machine learning, a lot of [human underwriting] can be done away with,” notes Sofya Pogreb from Next Insurance. “The percentage of insurance applications that require human touch will go down dramatically, maybe 80 percent to 90 percent, and even to low single digits.”
Unlimited Access to Customer Support
As customers continue to expect around-the-clock responsiveness, AI helps insurance companies stay connected. Instead of having to wait for business hours or sitting on hold, AI-powered chatbots can:
- Answer basic customer questions and provide assistance 24/7.
- Retrieve policy information.
- Help customers file claims or report incidents.
These services can also be applied across platforms, from the web, by phone, and on mobile apps, providing customers with a consistent experience no matter when and where they need assistance.
AI Tech is Fueling the Future of Insurance Digital Transformation
Today, insurance companies are employing AI tech for simple, defined tasks, but industry experts are predicting a bigger role for the technology in the years to come.
From creating custom coverage plans that fit their customers' specific needs to deriving new insights about their operations, products, and customers, the strengths of AI should be viewed by insurance companies as a force multiplier and competitive advantage instead of a threat to their business. This is why having an experienced partner like RCG in your corner to help identify the right applications, technologies, and implementation paths can accelerate the integration of AI and increase the return on your insurance digital transformation investments.
Want to learn more about how to better prepare your business today for tomorrow’s digital innovations? Then take a moment to download RCG’s latest eBook, Be Ready for Tomorrow’s Tech Challenges with the Right Digital Services Partner.