Artificial intelligence and machine learning are two very hot buzzwords right now in insurance, and often seem to be used interchangeably. However, they are not quite the same thing, so we are going to help cut through the confusion for you.
Artificial Intelligence is the broader concept of machines being able to carry out tasks in a way that we would consider “smart”. And, Machine Learning is a current application of AI based around the idea that we should really just be able to give machines access to data and let them learn for themselves.
Since insurance has always been data heavy, it is perfectly poised to be significantly impacted by AI. Here are just a few ways the insurance industry is evolving through the transformative use of AI and MI.
Consumers have come to expect personalized solutions, and AI makes that possible by reviewing a customer profile and providing recommendations for only insurance products that are relevant for that customer and that would be the best for them based on set criteria. Chatbots are already deeply present in messaging apps – saving customer services representatives time by resolving quick claims and answering simple questions.
Transaction and Claims Processing
As a highly regulated industry, the insurance industry processes thousands of claims and responds to thousands of customer queries. AI is being used to improve this process and move claims through the system from initial report to communicating with the customer. In some cases, these claims do not require any human interaction at all. Companies that currently use AI to automate portions of their claims process are realizing the time savings and an increased quality of service.
The huge amount of data that insurance providers and reinsurers have from clients, claims, and coverage ideally positions the insurance industry to enhance services and expand AI and ML capabilities.