The insurance industry is facing tumultuous times with technology shaping the way it operates. And, in a bid to cover the possibilities and challenges of inculcating artificial intelligence and machine learning in the insurance industry, we have already learned a lot in this four-part series. In the introductory piece, we analyzed the existing scenario of the insurance industry, considered the challenges it faces today and skimmed over the opportunities AI presents to eliminate hurdles in insurance on the path to digital.
We followed that up with a second in-depth article that detailed how artificial intelligence is helping the insurance industry prevent frauds and false claims – a pressing challenge for organizations in the space. We concluded the report with a glance over the possibilities further down the road at the intersection of AI and insurance companies.
Next, we comprehended the role of AI, blockchain, and the Internet of Things in claims management. Being the leading and few of the most influential technologies right now, AI, blockchain, and IoT go beyond the limitations of legacy systems to prevent frauds and facilitate efficient claims management.
As a conclusion to this intensive series on the applications, opportunities, and roadblocks of AI in insurance, let’s look at some more use cases and discover what opportunities chatbots and AI bring for the insurance industry collectively.
Chatbots and The Insurance Industry
Chatbots are employed in various industries today and pose massive opportunities for the insurance industry. Chatbots are digital assistants who can conduct natural conversations with humans and thus undertake initial exchanges, eliminating the need for a human workforce in the beginning stages.
Facebook messenger and website-based chatbots are among the most popular types used today. According to a report by Business Insider, four top messenger apps have a combined user base of more than 3.5 billion, exceeding the combined user base of four largest social networks.
A recent survey of 6,000 people around the world revealed that nine out of ten users would like to use messenger apps to engage with businesses. Messaging is a preferred channel for consumers all over the world, and it only means better and more meaningful applications of chatbots in the insurance industry.
Artificial Intelligence and Machine Learning in the Insurance Industry
Steve Anderson of The Anderson Network, a known authority on insurance tech and agency productivity, says that machine learning capabilities are already being used in the insurance space in the form of automated policy writing.
While this is only a drop in the ocean considering the scope of Artificial Intelligence and Machine Learning in the Insurance industry, Steve remarks that these capabilities will soon be used to streamline processes that are internal (helping employees with information) and external (improving customer experience). However, Steve adds that legacy systems are a hurdle for insurance companies looking to implement the latest tech.
Let’s take a look at the potential use cases of AI and ML in Insurance-
What Has and Remains to be Changed for the Insurance Sector
Steve Anderson thinks AI and Blockchain are still in their infancy when it comes to their use in insurance. He said, “Blockchain is a whole other area that will impact the insurance industry. Although, I think it will take a few more years to learn about the benefits of Blockchain implementation for insurance organizations. Several insurance organizations are spending significant time examining Blockchain to determine how it can be used to take ‘friction out of transaction’ for consumer interaction.”
The pace of change and digital disruption has been slow for insurance. Steve’s suggestion to companies wanting to adopt new technologies is to install a mindset shift across the organizational values. Being risk-averse, he adds, does no good for insurance companies. Most companies sabotage their growth fearing what lies ahead with tech-rich solutions.
In the past, here’s a wrap of how the insurance sector has changed –
Chatbots – A Game-Changing Strategy for Insurance
Create a competitive advantage by building a chatbot or assistant that frees up your human resources from repetitive and monotonous work to help them focus on growing and expanding your business.
To begin chatbot and subsequent AI adoption for insurance, apply these five effective principles –
Chatbots are a long way from handling all communications independently. But, we all need to start somewhere. We can help you gain a better understanding of what your insurance business needs when it comes to integrating it with AI.
When we asked Sam Evans, Managing Partner, Eos Venture Partners Ltd., about the significant challenges facing the adoption of Artificial Intelligence and Machine Learning in the Insurance industry, the trusted authoritative expert had a few things to say –
However, Sam quickly pointed out that many insurance companies have started investing heavily in future technologies such as AI and are already seeing results.
When asked about the visible applications of Blockchain in insurance, Sam said, “Blockchain is also moving from the experimentation phase to concrete use cases in insurance. For example, Maersk has announced a blockchain solution for their marine insurance. RiskBlock, a blockchain consortium, has launched a number of modules including proof of insurance and subrogation (recovery).”
If you are looking to invest in leading technologies to further your growth, consider Sam’s 3-point advice-
AI is a critical factor of success for companies in the insurance industry & at Maruti Techlabs, we empower these companies to leverage technology for fraud detection, claims management, analytics, and customer experience personalization.
Our mission at Maruti Techlabs is to equalize Artificial Intelligence across a smorgasbord of industries and use it to solve business and social challenges with the insurance industry being a key focus for us.
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