How AI Adoption Can Impact The Insurance Industry
Garry Kasparov, probably the greatest chess player in history, lost to an IBM supercomputer in 1997. But today, he is a strong proponent of artificial intelligence (AI). At a TED talk in 2017, Kasparov said, “Machines have instructions; we have a purpose. We will need intelligent machines to help us turn our grandest dreams into reality.”
AI is all about how machines and humans can collaborate—how machines can take over tasks they can do better and faster, so humans can focus on what only they can do. Many industries have embraced AI technologies and are already experiencing transformative outcomes. However, insurance companies have been slow to expand their digital capabilities.
Covid-19 changed that. A rise in call volumes and an unfortunate increase in medical emergencies, deaths and business interruption claims reinforced the belief that investing in AI-related technologies can pay off. It helps to engage with customers faster, supports distribution, settles claims faster and can help in fraud detection.
But that is only scratching the surface. AI has the power to completely revolutionize how insurance products are experienced. Let's explore.
Faster And Personalized Experience
If I go online to buy auto insurance, I could get an instant quote and complete the purchase in minutes. As telematics and sensor devices for homes, vehicles and wearables multiply, insurers have more real-time data about customers. This enables them to instantly create risk profiles, price the premiums appropriately for the risk and personalize products.