The insurance companies depend on data that provides them the insights they require to develop the services and products and make their insurance business more agile and efficient. But, the majority of the data generated daily is in the unstructured format coming in the form of text documents, emails, legal reports, research, videos, voice recordings, social media posts, etc. This unstructured data is a goldmine for the insurers, but quite difficult to analyze.
Fortunately, most insurance companies now embrace evolving technologies like Natural Language Processing (NLP) to apply understanding and structure to complex, unstructured data. Insights from this information can be used to mine information that enables predicting risks, bringing growth opportunities to the surface. Natural language processing (NLP) meets the industry’s needs by automating insurance processes, resulting in increased operational efficiency and profit margins. According to a recent report, the global Natural Language Processing (NLP) market size to grow from USD 11.6 billion in 2020 to USD 35.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 20.3% during the forecast period (source).
Artificial Intelligence includes learning predictable, repetitive tasks and replicating them on a larger scale faster than humans. NLP is a subset of AI technologies that understands unstructured data from the interaction between humans and computers and interprets it in meaningful ways.
In the present landscape, with NLP blooming in the insurance sector, machines can understand humans in the innate way we communicate, understand the intent behind language, and eventually automate communications. This, in turn, bridges the gap between human and machine language. Insurance companies use NLP to automate communications to make sense for consumers and provide them with an excellent user experience. Key Management Group Inc. uses NLP techniques and Deep Learning, which helps structure the free flow text data. To know more, please visit https://kmgus.com/
Insurance is a continually evolving sector. Integrating insurance systems with AI-driven technological innovations such as identity resolution, cloud computing, predictive analytics, natural language processing, etc., provides insurance companies with powerful tools to meet the ever-changing consumer needs and behaviors.