Why Insurers Need Artificial Intelligence SolutionsJuly 13, 2017
One of the country’s well-respected think tanks states that tort liability, insurance rates, medical malpractice and underwriting cycles are reoccurring challenges in the insurance industry. Fortunately, artificial intelligence offers opportunities for insurers to transform customer experiences, reinvent business models, and enhance risk management outcomes.
The Traditional Insurance Organization
Many insurers heavily rely on traditional tools and processes like spreadsheets and legacy systems. Legacy systems have made plenty of positive contributions to the insurance industry, but scalability, accessibility and service turnaround times are now critical. These organizations may only have limited online and social media presences because certain people may resist organizational change.
As a result, they may struggle to establish themselves in the market, maintain rapid growth and use business intelligence to optimize processes, resources and overhead. It may be unwise for these organizations to suddenly implement intricately complex and resource-intensive AI solutions. Instead, they can take advantage of easily-configurable AI solutions that use web platforms and cloud technology.
The Innovative Insurance Organization
Insurance organizations that have already successfully embarked on their digital journey will likely already be improving engagement with partners, customers, and stakeholders. Insurance organizations that invest IT solutions can transition from push marketing to pull marketing approaches. That is, they will be able to leverage the power and insights of Big Data, gamification, machine learning and targeted marketing.
Artificial intelligence helps organizations gain a deeper knowledge of customers’ needs and industry behaviors. They may then leverage multiple engagement channels and sales and service touch points to transform the customer experience. The key driver for most these insurance organizations is consolidation and improvements at minimal cost and risk. They may use basic AI pilot solutions such as virtual sales assistants and automated algorithms for needs analysis.
The Universal Benefits
Insurance organizations that correctly use AI may enjoy revenue expansion. This is because the real-time learning and adaptive capabilities of AI provides platforms to explore new geographies, product lines, and customer segments. Organizations can exponentially scale operations because their ability to manage data, search information and automate processes will be enhanced. AI systems help reduce turnaround time conversions and increase lead-to-quote conversions.
Artificial intelligence insights may enable organizations to reduce their manpower and overhead costs. With AI systems performing routine activities, staff can build expertise and focus on more skilled tasks. Other non-tangible benefits include faster access to information, the elimination of decision subjectivity and the reduced need for system alterations. Speech recognition and virtual assistants help maximize customer experiences across devices and platforms.
The Two Stages of AI Adoption
Most insurers can adopt artificial intelligence in two stages. First, they can use AI to help employees instead of replacing them in underwriting and advisory services. Underwriters can use AI systems to gather, refine and understand core data. Virtual assistants can help advisors manage low-value activities like planning, licensing, scheduling and lead management. AI-assisted employees can then focus on enhancing skills and providing value-added services.
Second, insurance organizations can combine technology and stakeholders across the value chain to develop an interconnected AI ecosystem. This will allow them to capture unstructured data from blogs, social media, customer interactions and internal communication. This central data repository may act as a knowledge base for staff training, system tuning, and pilot program development. For example, a dynamic program that generates underwriting claims through self-learning models.
Artificial intelligence holds the potential to dramatically change the dynamics of insurance advising, processing, and decision-making. Artificial intelligence minimizes the drawbacks of human advisors while helping them increase their knowledge and effectiveness. Insurance organizations that want to improve their outcomes and performance should consider affordable artificial intelligence solutions that overcome challenges, create solutions and improve processes.