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Artificial Intelligence Meets the Insurance Industry

Anusree Bhattacharya | May 31, 2022 | 287 views

Artificial_Intelligence_Meets
Through machine learning and deep learning, artificial intelligence (AI) can meet industry expectations.

As artificial intelligence becomes more deeply embedded in the insurance industry, industry leaders must position themselves to respond to the changing business landscape. Every day,various factors contribute to the industry's changing landscape. AI is becoming more assertive in insurance, particularly in cost savings, customer service and experience, product innovations, and marketing initiatives.

With this understanding, market leaders can develop appropriate revenue-generating strategies, embrace new AI horizons and implement them to develop the perspective required to succeed in the futuristic insurance industry.


AI-related Action for Better Forecasting

Among insurance executives who have already invested in AI, many new businesses are reaping significant benefits. They have gained the advantages of using AI to improve the customer experience (CX). According to a Deloitte study, approximately 65% believe AI assists in decision-making. Furthermore, according to PwC specialists working with insurers on AI initiatives, businesses are increasingly using AI to:

  • Customize products and services for consumers and other businesses
  • Establish a loyalty framework and upsell among customers
  • Automate more data from social media and other sources for better forecasting
  • Automate more aspects of claim processing
  • Improve fraud detection methods
  • Beginwith customer segmentation to target

As a result of these findings, AI investments will benefit insurance companies more than ever before.


How Insurers Can Accelerate AI

The following points can help insurance businesses accelerate AI and achieve faster ROI.


Centralize Business Functionalities

Deploying AI into the process aids in the automation of resources, the alignment of tasks, the use of analytics to nurture data, the improvement of governance, and the scaling of solutions.


Focus On Data

AI in insurance aids in collectingand combining relevant data from consumers and future customers. AI-assisted data collection is faster and more accurate at the appropriate time. In this manner, marketers can plan for future marketing campaigns that will increase engagement and bring in more money.


Reduced Risks

AI is the most effective at reducing business risks. Also, AI works best for insurers to minimize risks such as data breaches, fraud detection, correct cost segmentation, and budgeting hazards.


Some Insights into AI Investment: A Key Decision to Make!

As technology continues to empower the insurance sector, let's take a look at how other insurance companies are investing in AI so that you may make the vital decision to incorporate AI into your organization as soon as possible.

  • 65% of businesses found better ways to establisha customer experience base with the help of AI post-2020
  • 49% of businesses have improved their internal decision-making process after adopting AI
  • 56% of businesses were able to reinvent their products and services through AI
  • 47% of businesses operated their business functions more efficiently with AI and increased productivity.
  • 45% of insurance businesses saved substantial costs using AI algorithms
  • 35% ofinsurance businesses have successfully reduced risks associated with their businesses after the deployment of AI.
  • 53% of insurance companies have seen a significant revenue increase by incorporating AI into their processes.

These figures are based on a Deloitte’s research study conducted by insurance industry specialists worldwide.


Some Possible AI Risks for Businesses

Every technology helps businesses gain benefits, but technology installation has to be done correctly to avoid consequences. As a result, insurance companies must exercise caution when implementing AI in their business processes. The possibility of faulty AI implementation could lead to:

  • New cyber hazards
  • New privacy threats
  • Workforce shortages
  • New legal liabilities and reputational risks
  • Customer distrust
  • More complex business modules

The lack of AI abilitiesismore challenging, which can affect the entire business sphere, especially the functions that are associated with AI.

Spotlight

Fred C. Church, Inc

Fred C. Church Insurance is one of the largest independent insurance agencies in New England, with multiple locations throughout northeastern Massachusetts, southern New Hampshire and Connecticut. With over 150 years of industry experience, Fred C. Church’s dedicated team consists of over 150 full-time insurance professionals, risk consultants and in-house claims advocates whose main goals are to: deliver a superior level of customer service, get to know their clients and their unique needs on a personal level, and provide optimal insurance solutions that minimize risk while maximizing peace of mind. Fred C. Church works with many of the leading insurance carriers in the industry and provides their clients with the essential coverages they need to better protect their home, auto, business and more.

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