The last 4 years have seen an upswing in the use of Artificial Intelligence across different industry verticals. The insurance industry too, is now undergoing a digital revolution, thanks to the chatbots.
According to a report published by Financial Times, Lapetus, a US-based startup believes that a mere selfie of the customer can replace the traditional underwriting process. With just a photograph of the customer, the computer can scan, analyze, and predict thousands of data about the person. Within few minutes, the pace of aging, their body mass index, personal behaviour, and life expectancy will be predicted far more accurately than a human can. This proves that there is great automation potential through data collection and processing tasks in the insurance sector.
Filing claims is a long and arduous process. However, insurance chatbots can be applied to improve this. Companies that have automated processes have seen a significant reduction in the time taken to process claims. AI-powered claims can even fight the biggest evil in the industry — fraudulent claims.
The use of chatbots has drastically improved customer experience. Customers can now chat with the bots through text messages and voice commands. The Bots will then provide them with personalized services.
chatbots in insurance companies are now smart enough to sell products, address leads and provide services. Customers expect and prefer bespoke products to suit their needs. Using Artificial Intelligence, insurance chatbots can pull in customer data to create relevant products according to the customer’s preferences.
Chatbots have the potential to scan a customer’s social profile to gather information and find trends & patterns. But what in the case of complex queries? Chatbots can pass on the complex queries to technically trained call handlers. As a result, the executives can give more personalized attention and focus on the individual customers. Fitness trackers in health insurance segment and vehicle tracking devices in auto insurance bring in the possibility of intelligent and dynamic underwriting algorithms.
In a nutshell, Artificial Intelligence has the potential to manage every aspect of the insurance business, from underwriting and predictive analysis to risk mitigation and claim settlement. According to a report published by Cindy Maike in Insurance Innovation Reporter, in 2018, we can expect many well-known IT vendors such as IBM and Microsoft to make significant contributions to Insurance IoT and AI solutions. The current trends prove that the market will likely move towards insurance companies that are able to best harness AI to improve the customer on-boarding and claim management processes.