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Insurance Powered by AI

By CIOReview | Thursday, May 31, 2018

The wave of digitalization has hit almost every other industry. Even banking, finance, and insurance sectors are seeking out opportunities that allow them to deliver a paperless solution, accessible through smart devices. Technologies such as artificial intelligence (AI), blockchain, and machine learning have allowed these financial institutions to increase operational efficiencies and customer engagement. For insurers specifically, AI has time and again proven to be an efficient tool that allows them to understand risks associated with an investment, user demographic data, fraud detection, user behavioral patterns. This, in turn, facilitates effective management of insurance products and services, thereby providing a customer-focused solution.

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Industry experts classify AI-related practices in the insurance industry into three categories—operation focused, solution focused and experience focused. Operational AI solutions include virtual assistant, speech analysis, and predictive engines that aid insurers to automate numerous manual bound processes such as customer service and recommendation of insurance products. Furthermore, authentication solutions such as biometric engines are being tested for risk mitigation. The solution-focused approach combines multiple technologies such as machine learning and data analysis to churn raw data into useful information, thereby, eliminating redundancies and human errors. The final piece of the puzzle, which is the experience focused approach, helps insurance agencies to learn their customer experiences in order to customize their offerings for individuals or customer groups. Though these focus points have their pros and cons, they indeed nurture a transition from the age-old methodologies for greater efficiency.