Artificial Intelligence (AI) plays a major role in how European insurers look at the business of insurance going forward. This will provide insurers an opportunity to explore new solutions, automations [for data collection & analysis] and others to gain insight and increase customer engagement & retention.
Today, AI is one of the key areas of strategic focus in the European market, owing to its transformation potential and benefits. European Union’s recent implementation of the General Data Protection Regulation (GDPR) supports innovation in AI by facilitating access and usage of data to develop personalized experiences for customers, while ensuring protection of personal data and privacy.
Impact of AI in Insurance
From underwriting, product development, claims management, customer service solutions [RPA & chatbots] risk assessments, there is technology being deployed across the processes to increase accuracy, reduce fraud and boost business growth.
To understand the impact of AI in the insurance sector in Uk & European markets, we need to first study the companies and their willingness to make the shift.. [Ref image below]
While Artificial Intelligence [AI] provides an array of benefits not just to insurers, but agents/brokers and customers as well, depending on the use case. According to a World Economic Forum report, some of the potential applications of this technology include:
- Operational accuracy and efficiency
- Enhance underwriting & flexible pricing
- Real-time data & tracking
- Faster claims processing
- Improved agent efficiency
- Better customer engagements
- Higher levels of customer insights
- Big data & Predictive analytics
AI- enhancement not just replacement
If you did a survey among the various insurance enterprises, you would find most of them are already using Artificial Intelligence & Machine Learning technologies to heighten the customer service quotient [includes tools such as chatbots]. Today, with the entire world shifting their focus from products to customer experience, it is not surprising that nearly 56% stated the same. Using chatbots gives companies that edge they need, allowing them to interact with customers better and offer instant response to queries. It is also a good idea to combine AI/ML capabilities with Natural Language Processing (NLP) to make better informed decisions based on the real-time conversations and data
Let us look at some of the key areas transformed with AI:
52% of insurers are firm that AI will change the underwriting processes completely, above all others. Today, insurers are moving beyond just historical data analysis and are able to underwrite larger amounts more confidently as they have more insights into customer behavior.
Claims processing & Fraud detection
37% of insurers believe AI would help insurance companies curb frauds better. Fraud detection and claims management are two areas that are always causing distress to insurance companies. With automation across processes, there is increased accuracy of data and better processing of claims, with automatic alerts/notifications to all parties involved. ML powers these systems to understand customer patterns in greater detail, and create a unique customer profile that can detect frauds or changes in customer patterns easily.
Around 36% of insurers who were part of a survey believe that AI will have the biggest impact on customer experience. While chatbots might recognize and even remember customer faces/voices, customising messages/responses will help boost a customer’s journey. Apart from this, AI would speed up the identity verification, giving the company the ability to close out requests and purchases faster.
AI can also be used to
- automate the payouts to policyholders by recognizing the treatments they receive [ for those taking continuous treatments].
- aggregate the internal & external data (from customers and from digital channels, social media etc] and giving insurers the ability to assess risk profiles more accurately.
- Offer personalised product suggestions and boost sales. It also increases opportunities for up selling and cross selling [all based on data gathered]
It is quite evident that AI is here to stay and revolutionize the whole business of insurance. With experience in the field of AI and digital transformation, Neutrinos has enabled insurers to make successful AI adoption and integration. Having been at the forefront of digital transformation, at Neutrinos, we use the power of ML, AI and other IOT based capabilities, including connected wearables to increase efficiency of process and resources, thereby assuring high levels of customer experience is achieved.