As AI, image quality and cloud-based services improve, the insurance industry is slowly moving closer to an era where many claims may soon be processed without any human touch at all. One area where fully automated claims could bring new efficiencies and benefits is in commercial auto insurance. In a market where losses and claims are high, improving operational efficiencies is one of the most viable ways to gain profitability. Experts say most of the technology is already here, and while it must be refined to be ready for widespread adoption, it could be a mainstream reality within the next few years. Commercial auto insurance has been a tough market for many carriers in recent years.
From product development, underwriting and claims, to customer service chatbots, risk assessments, and quotations, technology are being deployed across the sector to provide faster, more accurate services. What is intriguing, however, is that while some major insurance companies are investing aggressively in AI, many are moving slowly, unsure of how best to deploy these technologies. In a recent AI survey, it says only half of the insurance executives consider AI technologies to be'extremely' or'very important' to their company's success, lower than for any other industry, such as financial services, healthcare, and manufacturing. Looking ahead three years, only 36% felt AI would be very important, again lower than any other industry. This lack of awareness around the importance of AI is worrying as new entrants to the market start making an impression.
The digital revolution in true sense has taken the world by storm. Ever since its introduction, the service industry has shifted its focus completely towards offering personalized experiences to the customers. The travel insurance industry is also sailing in the same boat and has been using new-age technology to offer the best products and services to its customers. But if you go by the experts, artificial intelligence is the key to offering personalised travel insurance services in future. Artificial intelligence (AI) is a widely used digital tool in the insurance industry today.
Progressive is one of the largest auto insurers in the US. The company has been experimenting with AI since the middle of the 2010s, with customer-facing applications that update insurance premiums based on driving habits and answer questions in a chat window. In this article, we discuss both of these AI use-cases. Emerj's AI Opportunity Landscape research in insurance shows that Progressive's Snapshot program follows a trend in which auto insurers use predictive analytics applications to determine how risky a customer or insurance applicant is: Approximately 21.6% of AI products in insurance are applications of this type. In contrast, although several of the largest insurance companies in the US have experimented with chatbots, the insurance industry hasn't prioritized chatbots the way the retail industry has, as chatbots make up only 8% of the AI products in insurance.
Facebook Messenger's Insurify instantly verifies customer data to compare real-time quotes from carriers in various zip codes and provide coverage recommendations. Its engine quickly finds the best insurance for each user based on that user's profile. Lemonade provides paperless and personless renters and homeowners insurance using chatbots and AI to create policies and handle user claims via desktop and mobile. Customers can choose which nonprofit organizations receive underwriting profits as part of the company's annual "Giveback" initiative. Facebook Messenger's Insurify instantly verifies customer data to compare real-time quotes from carriers in various zip codes and provide coverage recommendations.
Artificial intelligence (AI) has transitioned from a buzzword to a standard practice in fintech. Its growing adoption is expected to impact a wide spectrum of services, while adding increasing value to the bottomline. Operating behind-the-scenes till recently, it has since moved to front and center helping deliver customer service at lowered cost--AI-enabled chatbots for example-- saving companies time and money. Bajaj Allianz General Insurance has been leveraging the technology across various processes. KV Dipu, the company's Head – Operations & Customer Service, noted that chatbots enable financial institutions to undertake numerous internal and external communications easily.
When you mention AI, many people jump to IBM's Watson or a massive computer with super complex algorithms built by a group of scientists. In reality, AI is already everywhere, with many people not realizing it is there. For example, this very blog was built using Office 365 built-in AI such as Editor for correcting grammatical errors, and we used MS Teams video conferencing to perform the final review where the background was blurred out allowing participants to focus on the discussion and not what is going on in the background. In your personal life, AI is present in places such as Gmail auto-suggesting responses, or in the Pinterest LENS tool where you can take a picture of that amazing wood furniture and find similar tables and even help find a custom woodworker to build the amazing table. As you can see, AI is everywhere, and a study by PwC estimated that global GDP would increase 14 percent by 2030 as businesses adopt AI, contributing an additional $15.7T to the worldwide economy Source.
From e-scooters to self-driving shuttles, to ride-hailing and car-sharing, auto companies and startups are testing any number of mobility services. While the long-term viability of some of these services remains unclear, one factor surrounding them is certain: The need for comprehensive insurance coverage for users. And that may present an opportunity for a new kind of insurance policy, one that could be on demand, for example. PSA North America's Free2Move short-term rental fleet in Washington, D.C., uses coverage through mobility insurance provider Trov. Insurance premiums are adjusted based on data Trov receives in real time from Free2Move's connected vehicles.
Technology is advancing every day, and it's disrupting industries from retail to manufacturing to insurance. It has become increasingly apparent that AI, blockchain and machine learning have the power to transform the future of business and the way people work and live. These new technologies are already being applied in the insurance industry. Some insurance companies are using AI and machine learning to automate certain parts of the claims handling process and improve customer service. Blockchain is being used to detect fraud and prevent risk.