Many businesses are already taking advantage of artificial intelligence (AI) technology to improve the customer experience. This is also true with companies that provide insurance coverage. And customers are perfectly fine with it. In fact, nearly 75 percent of customers say they would be perfectly happy getting insurance advice that’s computer-generated. If you haven’t yet explored the possibilities of using AI to streamline customer interactions, read on to learn how AI could make your insurance company more efficient.

Speeding Up the Claims Process

The average time to complete the typical insurance claim process is about two weeks, give or take a day or two. With claims involving steps handled by AI programs, the average claim cycle time drops to about two or three days. Automating insurance claims may also make it easier to spout instances of fraud early in the claims process. There are already instances of insurance companies using AI to improve accuracy with detecting fraud, which costs the insurance industry nearly $50 billion annually.

Calculating Risks More Precisely

AI can automatically factor similar jobs with different risk to calculate rate. For example, physician disability insurance generally starts around $130 for men and $177 for women, however surgeons, EMTs, OB/Gyns, Anesthesiologists, and radiologists are assigned a higher monthly rates due to higher risk associated with these jobs. Many insurance companies are already developing and using their own AI tools to analyze policyholder risks. Creating better risk models could have a huge impact on the type of insurance that’s purchased and what’s recommended to potential clients. There are already AI programs that sort through information from social media profiles and multiple devices to collect health data to assess risks.

Making Insurance Marketing More Personal

“Personalization” is one of those words that’s commonly associated with marketing these days, primarily because it’s what resonates most with consumers. Thanks to AI, you can use machine learning techniques to develop and implement marketing plans that are unique to your clients’ needs and preferences. For instance, an AI program could answer basic customer questions. It would then follow-up with automated emails offering coverage suggestions based on what questions were asked.

Collecting Data More Efficiently

Insurance companies have a long history of collecting data about customer behaviors, especially ones that could increase injury risks. Many companies are already turning to AI to make the data collection process less demanding and more efficient. The hope is that gaining new insights into customer behavior may be able to help modify certain actions, such as driving while distracted.

Facilitating Customer Interactions with Chatbots

It’s predicted that AI will power 95 percent of all customer interactions by the year 2025. A lot of these interactions are already taking place through chatbots, programs that simulate human conversations. For the insurance industry, chatbots can help with such things as automating the process of welcoming new customers and providing claim status updates.

Rest assured there will always be a need for customers to connect with an actual insurance agent at some point. But what the technology discussed here can do is gather information quickly and make human interactions even more productive. Yes, the decision to integrate artificial intelligence into your established business model can shake things up a bit. Still, AI could also be what helps keep your profit margins healthy in an increasingly competitive world.

Algo is our AI-enabled virtual business analyst, and he’s ready to help. Schedule a demo today to see what he can do for you!

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