Disrupt & Innovate with Artificial Intelligence
Artificial Intelligence (AI) technology has advanced colossally over the past few years across all industries, significantly alter the way carriers and service providers were doing business and allow them to automate tasks that previously required human interaction, and ultimately innovate. Utilization of AI helps lower costs, saves time, reduces times to make decisions, and provides valuable insights to help better understand customers and improve the experience provided to them. In insurance, AI can be used to define customer-centric experiences to accommodate and personalize each customer interaction. AI can help insurers manage expenses, mitigate risks, reduce premium, billing and claims leakage, and manage activities related to subrogation, litigation, claims settlement and fraud detection, among others.
As the insurance industry progresses in its adoption of AI technology, it has become apparent that the capabilities provided by AI are a vital part for any carrier who aims to address customers’ demands and remain competitive. Specifically, we are seeing heavy AI adoption in four primary areas in insurance:
- Chatbots, or intelligent virtual assistants, are being utilized to handle customer support via real-time chat features, email and even phone calls. They are available 24/7 and significantly reduce time and effort compared to human resources spend on such activities, and empowering them to focus on more complex tasks and more profitable activities.
- Customer Experience. AI can analyze data from multiple sources to identify risks and make more personal recommendations according to customer needs. Personalized interactions improve the customer experience, thus increasing retention rates through increased value to insureds.
- Claims Management. Claims management is where we see significant investments in AI technology among insurers. Due to the complexity of claims management processes and the collaborative requirements for settlement and recovery, AI can deliver immediate results and a quick ROI in this area by automating manual tasks, which includes capture, indexing and redaction of claim documents, as well as other document management functions. Another area where AI and Machine Learning (ML) are helping is in litigation management by reducing legal expenses and costs.
- Fraud Prevention. According to the FBI, fraud in non-health insurance in the US exceeds $40 billion annually, costing the average US family between $400 and $700 per year in increased premiums. AI queries events during the processing of claims and utilizes ML algorithms to analyze structured, semi-structured and unstructured data to identify potential fraud.
In addition to these primary areas for the earliest uses of AI in insurance, the technology has numerous other applications to further digitize the insurance IT landscape, including lead and asset management, risk identification and mitigation, and continual optimization of coverages. As we continue to realize the value of AI, new applications for the technology will be employed for continual enhancement of the customer experience.
Even in these early days of AI we can see the value it is adding to multiple processes in insurance. As the technology matures it will be exciting to take advantage of the opportunities it provides. Stay tuned for more from Sapiens professionals as they share their expertise in this area in the upcoming weeks.