AI in Insurance Industry

The Insurance Industry and Automation - the next big thing!

May 20, 2021

From the time of the evidence of life in the world and the discovery of human existence, man has always tried to innovate things making them more advanced and easier. Automating the tasks and making them more accessible for all has been the primary objective. We fast forward to many years and to the times we live now; machines are invented, which transformed the labor work in hours that hundreds or thousands of humans couldn’t accomplish in weeks or months.


The insurance industry has also embraced the trend and has been trying to re-invent the workforce by introducing Artificial intelligence that helps machines work as humans. It is an automation feature where the thoughts and actions of humans are simulated in the machines. Thus, substantially reducing the cost and increasing the output as they are highly efficient.

 

What is the role of automation in insurance underwriting?

Insurance Underwriting is a system in which the detailed demographic and customer background are recorded to analyze the customer journey and turn leads into potential customers. It is essential to have a record, but then the workforce system is entirely dependent on manual recordings, thus delaying the results.

Not just that, the traditional manual system also hinders any innovation or transformation in the process as there is hardly any time left for the staff even to think anything other than the usual tasks.

The scenario in the insurance companies is such that they are usually lesser staff and have more hectic deadlines. There’s no deeper customer connection, thus resulting in low retention rates. Automation in this industry will definitely be a game-changer as machines can quickly get the tasks done in a shorter span, fetching more results. When the machine does the jobs, it can do or is assigned to do; human agents are allowed to get some space and delve more profound into the work process that is crucial for the organization, subsequently enhancing the results.

When the machine is busy doing the tasks, humans can focus on personalizing the services and products, making it easy for them to make decisions.

 

But how exactly does it work? How does AI help the insurance industry?

Insurance and AI

AI-based into automation helps in the following

  • Streamline the process for humans and provides high quality for the customers virtually
  • Helps in data-driven underwriting and retrieving accurate data digitally
  • Evaluation of risks and the coverage for each customer
  • Reduce cost and increase the efficiency while boosting the outcomes
  • Optimize the process adding value to the tasks
  • 24/7 round the clock support for its customers
  • Accelerates the buying journey for customers
  • Schedule calls and meetings, retrieve/generate documents, updating information in the customer’s profiles and tasks alike.

 

Robotic process automation and AI – which one is better for the insurance industry and why?

What is RPA?

Automation in Insurance

Robotic process automation is a bot feature based on automation, but it only involves monotonous tasks. Since it is based on algorithms, the tasks need to be very simple without many variations. Tasks like copy-paste, retrieve data, generating datasheets from the clouds, etc., can be done through RPA.

But in today’s gen, is RPA enough? With the advancement in technology, the process gets better and better the features. Let’s read more on AI and then decide on which one’s is better for the insurance industry.

 

What is AI?

AI

Artificial intelligent bot systems get better with every transaction made, imitate humans based on the data or conversation, respond intelligently, helps in decision-making, self-learn and improve, work beyond digital, and even go cognitive.

So, what if we had an intelligent bot system for the insurance industry that could understand customer behavior and suggest appropriate decisions? Wouldn’t this itself make a huge difference?

And yes, not to miss out, intelligent automation would cut the cost dramatically, and there would be a massive difference in the results.

 

Which one should the insurance industry adapt to?

It's high time for the Insurance industry to embrace intelligent automation for their systems, work as they are highly efficient and at the same time reasonable too. Insurance agents can focus on innovating the product and services, putting their efforts on things that are more important to them to grow their revenues, and building products that make a difference.

Without intelligent automation, organizations would be left far behind, and it’d be challenging to walk in the pace of the fast-growing world!

It’s time to change, transform! And it is the time for AI!

Written by:

Floatbot Team

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