AI for insurers

5 Ways AI Benefits Insurers

Posted by  Debra Carbone

Artificial Intelligence (AI) has taken hold in the business world with companies using it to perform routine activities so employees can focus on skilled tasks, as well as using its machine learning to gather insight on customers. Insurers have been slow to the AI party though, but with all of the opportunity it presents, they can’t afford to continue to sit on the sidelines.

So how can you harness the power of AI while avoiding pitfalls? It’s important to develop a focused plan that defines what aspects of AI make sense for your business, then determine how and when to implement them into your business. Keep in mind, part of this plan should be communication with staff so they understand and adapt the new technology. AI is being used to help them in their jobs and not to replace them.

As with any major change there is risk involved, but by taking a slow and focused approach, you can achieve your goals with minimal issues. Below are five major benefits AI can help your insurance business achieve:

  1. Discover New Revenue Sources – One thing AI is good at is providing useful information. By gathering data on customers’ needs and their characteristics you can determine which business lines makes sense to expand or start, maximize the customer experience and prompt customers towards products based on an understanding of their behavior. Virtual assistants such as KORE can be used to discover this data as they manage processes.
  2. Increase Operational Efficiency – AI technology, such as Pypestream, can take on routine tasks, freeing employees to focus on more important areas. That change can also have the additional benefit of improving employee moral as they have help for processes they would rather avoid and they can build their knowledge in other areas. It’s possible to receive information faster, more objectively and it can lower costs due to speed of operation.
  3. Improve Customer Experience – Virtual assistants can help your customers by quickly guiding them to what they need, prompting them to accomplish time sensitive transactions and eliminate human error. AI can also improve compliance by monitoring customer/agent interactions to help eliminate agents selling products that aren’t appropriate.
  4. Gain a Competitive Edge –Better understand your customers and prospects with insight into how they behave allowing you to predict outcomes and determine trends. InsureCX app by Zipari can arm you with this data so you can get ready for change before it happens and have a leg up on your fellow insurers.
  5. Enhance Advisory Performance – Advisors can use robo-advisors to help with the more mundane tasks so they can accomplish more interesting and challenging functions. With AI in place there is a consistency in services and the ability to serve constituents around the clock.

There is no doubt that AI is not going away, so it’s important to find a way to implement to achieve its significant benefits.

Insurers who harness the power of AI will put themselves in the best position to meet market challenges posed by the ever-changing insurance industry. More and more companies are putting AI into their organizational model as the reward is greater than the risk.      

Deb at Unit4

Debra Carbone

Deb is the Marketing Coordinator at Unit4. She's interested in the financial services industry and event management.