June 16, 2020
4 Ways AI Helps Insurers Thrive
AI can change the traditional siloed mindset to one that engages employees, encourages innovation and promotes collaboration.
Artificial intelligence (AI) is one of the most transformative technologies of our time. According to Statista, the global AI software market is expected to grow approximately 154% year-on-year, reaching a forecast size of $22.6 billion by 2025. As AI grows to permeate seemingly every industry, there’s an opportunity for the insurance industry to leverage AI in day-to-day business operations and to improve the overall customer experience.
For starters, insurance is a data-driven industry. Advanced technology like AI allows insurance companies to maximize the value they derive from that data. With the right technology, insurance companies can change the traditional siloed mindset to one that engages employees, encourages innovation and promotes collaboration both internally and externally. Insurance companies can thrive in four key areas of their business operations.
Improve recruitment and retention
Organizations can use AI in recruiting efforts to maximize retention and speed up the process. In fact, according to a recent study, 96% of senior HR professionals believe AI has the potential to greatly enhance talent acquisition and retention. Additionally, it takes an average of 13 hours per week for recruiters to sift through applications to find the right match. Using AI, hiring teams at insurance companies can use data to better match skills with job descriptions to recruit the most qualified candidates.
Enhance the customer experience
As more insurance companies begin implementing AI, they see the underlying effect it has on their customers’ experience. With the integration of AI comes opportunities for teams to use data to improve the customer experience.
For example, insurance companies may receive hundreds, if not thousands, of calls per day from customers with questions on filing claims or finding the best quote. Companies can eliminate the need to wait on hold for the next available agent by using AI-powered chatbots and virtual assistants to answer common customer service questions. Additionally, the benefits trickle down to employees, because it’s nearly impossible to be “on” all the time answering customer inquiries around the clock. Companies can lean on AI for common issues, leaving human resources to address more pressing requests or those that require a “softer” touch. This allows customers to feel heard anywhere in the world, all day, every day.
Save time on claims processing and underwriting services
AI can also help insurance companies speed up and streamline their claims processing and underwriting services. On average, an insurance company needs about one to two days to receive and process a claim. Nowadays, most insurance companies have created an app for their customers to use in case they get into an accident. A driver can upload an image of the damage and talk to a representative with the click of a button. AI can expedite the claims process and spot inconsistencies –– which provides teams and customers with peace of mind.
Use data to discover underlying commonalities
AI also enables insurance companies to quickly pull up a customer’s information when the person calls. AI collects and stores data about the customer and allows insurers to better understand why the customer is calling based on previously gathered data or reoccurring requests.
Additionally, insurers can use AI to uncover any underlying customer patterns. A sales team can then better predict customer spending and adjust pricing and product recommendations in a timely manner.
AI is poised to disrupt the industry like never before for both insurers and their customers. AI helps the insurance industry put massive amounts of data to optimal use, which in turn can improve the bottom line and transform business processes. It’s only a matter of time before insurance companies rely solely on AI to give them a competitive advantage in today’s marketplace while setting them up for long-term success.