AI – The Natural Partner for Insurers and Claimants
Insurance. It’s one of those things you probably don’t want to deal with when buying it, nor when you are in need of its financial support. But regardless of type, whether for a vehicle, your health or potential unemployment, it provides a cushion which we welcome at a time of need. Actuarial science was probably using ‘big data’ before it was considered necessary to have its own term, so it should come as no surprise that AI is also starting to find its way into this multi-billion-dollar industry.
With a broad range of services available for the same areas of risk, it can be challenging to help customers find the product that best suits their needs. AI chat bots have the potential to outperform simple yes/no tick-box forms during online customer interaction since the choices are less black-and-white and more like a series of weighted choices – something AI is good at evaluating.
When it then comes to claiming on that policy, AI again could reduce the frustration level. Pages of archaic forms with irrelevant questions could become a thing of the past as an AI engine is used to drive the claimant through only those questions that are relevant to their claim.
Another area where AI can help is with fraudulent claims, which currently cost the industry $40b per year. The pattern detection capabilities of AI are again the natural partner here to search out the claim forms that are too uniform in their answers, or the claimants that apply for payout all too regularly. This benefits the consumers, since savings here will enable the industry to reduce their premiums in this highly competitive industry.
And perhaps, in the not too distant future, the claims will be made by AI automatically. Whilst on holiday, with perhaps little idea of what is going on at home, inclement weather could cause property damage. By analyzing satellite imagery and IoT sensor data, AI could inform us by email that we have the basis for a claim before we get home. Wouldn’t that deliver peace of mind?