If you’ve watched too many sci-fi movies or read a ton of science fiction, artificial intelligence (or AI) is often cast in a bad light. The concept of machines with human-like intelligence is depicted as troublesome, scheming, and violent robots that only have one goal: to replace humans as the superior species and inherit the planet. Even famed physicist Stephen Hawking didn’t know what to make of AI, saying,
“The rise of powerful AI will be either the best or the worst thing ever to happen to humanity. We do not know which.”
Thankfully, most AI advancements have been mostly geared towards benevolent pursuits rather than sinister ones. The concept of AI has existed almost simultaneously with the invention of the first-ever computer in the 19th century, but its prevalence has only been observed in recent memory.
In today’s business landscape, AI is now being used to efficiently run operations by automating labor-intensive tasks for less time and costs. In other industries, AI can help analyze customer data to predict their behavior to identify the product or service that best suits them at the optimized price. So how does AI fit in the insurance industry?
The Case for AI in Insurance
The insurance industry is one of the slower adopters in integrating AI in their businesses because it’s an old and highly-regulated field that remains extremely dependent on paper and labor, while also requiring human intervention. It’s practically a given that when you deal with insurance, there’s bound to be a pile of paperwork and a degree of bureaucracy involved in claiming reimbursements or applying for a new policy.
Instead of blindly accepting the way things have always been, some insurance companies are becoming more open-minded in advancing their technology with AI to conduct their business more efficiently. Here are some of the ways artificial intelligence paves the way for a smoother insurance process:
Offer More Accurate Quotes
One of the common facets of AI is its machine learning capabilities—this refers to identifying patterns in data and predicting the outcomes based on these observations. In the world of insurance, policies can be priced more relevantly and reasonably according to a particular client’s industry or lifestyle, while other useful products can be more accurately suggested according to their needs.
Using machine learning to create the best policies for clients can increase the appeal of obtaining insurance to a broader market. This process makes it easier for business owners to sift through various insurance policies to find one or two that would be most suitable for their needs.
Recognize Fraud Patterns
Neural networks in AI simulate the functions of the human brain that revolves around analyzing and processing information. However, it takes the brain one step further to identify, classify, and analyze diverse data and read complex patterns that would be too challenging to solve by human or statistical standards.
The Federal Bureau of Investigation (FBI) estimates $40 million in non-health insurance fraud claims filed every year. When neural networks come into play in insurance claims, this technology can swiftly recognize fraud patterns to reduce payouts to fraudulent claims and the number of fraudulent claims in the future. Simultaneously, machine learning can also improve an insurance company’s actuarial models and risks that offer more effective and profitable products.
Answer Customer Queries
Chatbots or virtual assistants are forms of AI technology that have been around for quite some time. Some of its more popular iterations include Apple’s Siri, Amazon’s Alexa, and Microsoft’s Cortana. Some company websites use the same AI to help answer customer inquiries without human mediation.
Insurance companies can utilize chatbots equipped with neural networks to answer simple to comprehensive questions via email, chat, or phone calls. This can lessen the time insurance agents spend addressing policy-related queries to focus on more pressing work and profitable activities.
Efficiency Ensured For Business Insurance
Using AI in insurance helps address many of the industry’s pain points toward the consumer and insurer, making it a win-win solution for risk coverage. Upon realizing that there was too much bureaucracy in the industry and that no policies suited small businesses and startups, a group of individuals came together to create a safe space for the little guys in CoverWallet. Tailored for small- to medium-sized businesses, CoverWallet has positioned itself as an AI-driven insurance company where entrepreneurs can find the most competitive and suitable policies for their business through an easy-to-use platform.
To request a quote, CoverWallet requires you to answer a short online quiz for the AI system to use its algorithm in narrowing down your policy options. The quiz includes questions about the industry your business falls under, the number of employees you have, your business location, and so on to offer accurate quotes for the type of insurance you’re interested in and other coverages you might need—all in a matter of minutes.
In case you might need some human assistance, you may also ask for advice from a CoverWallet consultant.
Get a free quote for your business today. Find out more about CoverWallet here.
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