Artificial intelligence is found all around us in the form of chatbots on company websites and even in claims processing. As insurance technology solutions continue to evolve, artificial intelligence can become a very helpful tool for insurance innovators and industry professionals. In this article, we will discuss how artificial intelligence is currently used within the industry, we will highlight the pros and cons of artificial intelligence for business, and we will cover how the implementation of A.I. relates to your business.
First, let’s outline the many ways artificial intelligence is currently used in the insurance industry.
Cameras, Sensors, and A.I.
The term “artificial intelligence” was at one point used as a futuristic depiction of what could be. However, the implementation of artificial intelligence began years ago and is expanding to various areas of the insurance industry.
Currently, A.I. is used within the insurance industry to determine several risk factors that were once a challenge to pinpoint. Big name insurance companies have turned to artificial intelligence in the form of cameras and sensors to confirm the safe driving habits of the insured. Other companies have implemented A.I. to determine texting while driving on phones connected to a vehicle’s audio system and other unsavory or illegal actions which could affect insurance rates. Also, very commonly fitness trackers are used to determine health insurance aspects.
Additionally, many day-to-day tasks performed by insurance professionals have incorporated A.I. into their insurance agency technology to reduce clerical errors that are often the result of manual data entry. A.I. is also a popular tool used to speed up claim processing times and payment times. In the same regard, A.I. has been beneficial in the underwriting process, fraud protection, and customer service.
On a broader spectrum, artificial intelligence is also used by ride share apps to deliver a better user experience by displaying real-time vehicle locations, precise arrival times, and even real-time vehicle speed. Even more, the commercial insurance coverage provided for ride share companies commonly use A.I. to manage risks and deliver more accurate rates.
Next, we will dive into the pros and cons of artificial intelligence in the insurance industry.
The Pros and Cons of A.I.
Although A.I. brings an abundance of benefits and features to the insurance industry, there are always aspects of commercial insurance software and insurance technology which are unpopular among industry professionals. Now, we will highlight both the good and bad attributes of artificial intelligence.
Some of the advantages associated with artificial intelligence include:
- Time saving
- Cost saving
- Enhanced customer service experience
- Fraud reduction
- Increased profitability
In contrast, some of the disadvantages associated with artificial intelligence include:
- Infrastructure concerns for businesses who seek to implement A.I.
- Camera access on various electronic devices to determine risks, cause concern for consumers in regard to privacy.
- A.I. Hubs being used for home insurance data on Smart Homes raise concern for the technology being tied into an ecosystem of sensors operated by a third-party in order to collect neighborhood data.
Now that we have highlighted the pros and cons of artificial intelligence in the insurance industry, it is time to briefly discuss how the expansion of this technology directly relates to you and your business.
Artificial Intelligence and You
With every innovation in the insurance industry, it is imperative to understand the direct impact the technology will have on your business and your daily processes. The connection to artificial intelligence for agents, MGAs, and carriers are quite similar. According to the National Association of Insurance Commissioners, the implementation of A.I. will lead to enhanced underwriting abilities, an advanced customer service experience with more intuitive chatbots, more innovative marketing, and improved fraud protection.
As all of these aspects will assist in streamlining and improving the business processes for agents, MGAs, and carriers, the main resource necessary to make the future of A.I. successful rests in the big data collected from various resources. This data will have industry professionals seeing increased customer engagement, as well as making it easier to identify your target customer while more effectively highlighting the ideal products and services for them through the implementation of A.I.
Be sure to follow insurtech trends from insurance innovators like Appulate to stay current on all of the latest resources available in order to effectively ride the wave of the future.