Powering Insurance Industry with Artificial Intelligence
Mar 11, 2022
Artificial Intelligence in Insurance
New insurance technologies and digital platforms are transforming the insurance industry, including everything from underwriting and customer service to claims management. These emerging technologies are creating high value for consumers and insurance organizations.
Today, Artificial Intelligence (AI) is rapidly reshaping how insurance businesses operate. It is easy to plan and execute activities faster with AI, making it a one-of-a-kind technology for the insurance sector. AI enables P&C insurers to obviate human intervention and accomplish tasks with absolute precision. As per a recent report, the artificial intelligence (AI) in the insurance market size is valued at USD 6.92 billion by 2028 and is expected to grow at a compound annual growth rate of 24.05% in the forecast period of 2021 to 2028 (source).
The advancements in Artificial Intelligence are bringing a seismic, tech-driven shift. By leveraging AI automation in insurance, organizations are acquiring a host of advantages like better risk and fraud management, smarter underwriting decisions, enhanced consumer experiences, and many more. It is presumed that the insurance sector will soon avert from its “detect and repair” approach and embrace a more futuristic “predict and mitigate” strategy. Thoughtful about transforming your insurance data into valuable business insights? Choose https://kmgus.com/ai-ml/ for an excellent AI experience.
Here are a few features of AI that enable the insurance industry to soar high:
Product Development & Personalization
KMG has been very instrumental behind enhancing insurance processes and operations by personalizing customer experiences for maximum output. This creates a profound impact on today’s constantly-evolving insurance business landscape.
Key Management Group Inc. uses Artificial Intelligence along with big data analytics to derive insights about consumer preferences. This has led insurance organizations to develop their products according to specific customer requirements. These customized products enable the clients to only pay for the coverage they need.
Consumer Acquisition through Swift Response
KMG leverages Conversational AI technologies like chatbots that play a vital role while communicating with consumers. Simple consumer queries can be answered rapidly by chatbots that enhance customer satisfaction and enables the employees to concentrate on higher value-adding tasks.
Moreover, as consumers begin to engage more with AI-powered technologies like chatbots that record their inputs and responses, insurance companies can acquire more significant insights regarding the exact requirement of the customers, thereby improving their customer acquisition.
For instance, Allstate, one of the biggest insurance companies in the US, deployed an AI-powered digital agent in 2017. In nearly three years, this digital agent has handled three million calls in collaboration with live agents, achieving a success rate of 75% in cutting call durations and boosting customer satisfaction (source).
Claims Processing
Consumer experience and speed are crucial points for successful consumer retention in claims processing. Henceforth, AI-powered technologies are phenomenally managing insurance claims processing tasks.
Today, KMG’s AI-driven NLP technologies can handle colossal volumes of documents. This enables insurance organizations to process documents rapidly, save time and costs, identify fraudulent claims, and check if claims are compliant with regulations. What was once a tedious activity for an in-house employee has become an easily manageable task. This can be executed seamlessly by an expert team at Key Management Group Inc.
Underwriting
AI technologies are now connected to other systems like IoT devices, social media, and web portals. This way, client information can be gathered from omnichannel sources on which consumers interact.
Based on this data, KMG enables the insurers to ascertain the level of risk associated with the premium determination. Data such as customer health details allow underwriters to make critical decisions during the underwriting process.
Claims Fraud Detection
Roughly 35.8 million American adults admit to lying to their car insurers to gain coverage in the US (source).
With AI-driven text analysis and predictive analytics tools, KMG enables automation in insurance to detect fraudulent claims based on the claimant’s story data. The insurers can also benefit from voice analytics to understand whether consumers are lying while submitting claims.
In a Nutshell
The espousal of AI is gaining momentum in the insurance domain. Insurers must embrace artificial intelligence to develop a long-term, progressive strategy and transformation plan, thereby enhancing the insurance business models and gaining a competitive advantage. Please visit www.kmgus.com to know how we can help you successfully use AI in your insurance business.
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