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Insurance Firms on its Verge to Adopt AI

By CIOReview | Thursday, June 6, 2019

FREMONT, CA: Customer data is vital for insurance firms to stay competitive. Insurance companies have data logs of past and existing customers. Bracing the insurers, potential patterns present in the real-time customer data add to the rational decision-making and situation analysis to drive fidelity. While it is a challenge to discover these patterns, databases help to find them quickly and efficiently. Large insurance companies are still not wholly digital to tackle such compound difficulties. The backlog of claims forms and privacy is partly a collection of paper documents.

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Old documents are stored off-site in various locations across the region the insurance firm is operating at. Global firms store these documents in countries together. Many insurance firms still accept paper claims forms and applications, and take payment and send claims payouts via check.

Artificial Intelligence (AI) is very efficient when it comes to dealing with large volumes of data. Some of the largest insurance enterprises are implementing AI solutions for functions such as customer service. The potential to search through digitized documents is made possible with natural language processing (NLP). It is the ability to scan paper documents so that they’re searchable with NLP software.

Without aggregating the lifetime importance of every customer of a comparable demographic, data cannot be determined, accurately. Underwriters require to sift them through thousands of past customer records. Some documents might not be digitalized, and in such a case, underwriters need to look through boxes of paper documents to find policy agreements belonging to customers that fit the demographic. This is a time-consuming task, and so underwriters tend to settle for a historical precedent that is easily accessible by them when determining premiums.

Digitalizing materials is the first step in extracting information. It is a necessary step for feeding the data in these documents into an artificial intelligence algorithm. The insurance industry needs to consider AI-based document search and document digitization solutions for enhancing the power of applied documentation and data management analytics.

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