7 use cases of artificial intelligence in the insurance sector

Nowadays, technologies such as Artificial intelligence is changing the way companies operate in any industry. In the insurance industry, specifically, AI is helping insurers with customer demands, operational requirements and even competition.| You may be interested in: Santalucía Impulsa Podcast #2 — Artificial Intelligence and Innovation

Artificial intelligence in the insurance industry and its applications

Today's consumers are demanding speed, authenticity and personalization. And this is the framework in which we understand how insurers can maximize the capabilities of this technology. Including the use of artificial intelligence in the insurance industry implies that insurers can create unique experiences for customers looking to buy or renew their policies of insurance. Thus, the entire process, from subscription to claim management, can be benefited and optimized thanks to artificial intelligence. And the best part is that this will improve internal operations, but it will also provide a better customer experience.

1. Data analysis and risk prediction

First, artificial intelligence allows insurance companies collect, analyze and process huge amounts of data in an efficient and accurate way. Through advanced algorithms, AI can identify patterns and trends in data, helping to accurately assess risks in order to act accordingly. Not only that, but AI is able to predict future events and potential risks by analyzing historical data. This allows companies to offer personalized policies tailored to the individual needs of their clients.

2. Process automation

AI is revolutionizing the way insurance companies manage their internal processes and operations. Automating repetitive and routine tasks, such as managing documents or evaluating claims, allows insurers to improve their efficiency, reduce costs and streamline processes. In this way, professional agents can focus on higher-value activities for policyholders, such as strategic decision-making.

3. Accuracy in the subscription

The subscription process depends on the data management and analysis, a procedure that has traditionally been supervised by people. Now, with the advent of AI, the analysis of subscription criteria can be processed more quickly, generating more accurate risk and price assessments. Within the subscription process, the pricing of risks it's one of the most delicate parts. AI, through data analysis, makes it easier for those responsible to adjust the price of each policy. Process automation, advanced analysis and the rest of the technologies involved combine to create analytical tools that help manage and price risk with greater precision, allowing for personalization in the subscription. With all this, insurers can reduce costs, maximize productivity and generate more revenues by offering a better experience to their customers.

4. Improved customer service

There are already many insurance companies that have chatbots or virtual assistants for the first contact in their customer service departments. The normal thing so far is that AI, chatbots or voicebots deal with the most common requests or queries: the expiry date of a policy, the price of the renewal or the change of direct debit. However, this may evolve in the future. This is how AI enables customer service departments focus your human resources on value-added tasks, such as dealing with claims.

5. Claims Management

Beyond that first contact and the usual small questions, artificial intelligence tools have also conquered Claims management by insurance companies.The processing of a claim has always been a long and tedious procedure, and when a customer is forced to file one, the last thing they want is to deal with multiple points of contact. It is precisely in these moments of greatest need that insurers can harnessing AI to deliver a more effective service. This technology is capable of processing claims, assigning the request to an agent, evaluating coverage levels, creating small follow-up tasks and keeping in touch with the insured throughout the process. In addition, AI can be used to combat fraudulent claims thanks to the fact that, through continuous analysis, it is able to detect irregularities in data patterns and thus alert insurers.

6. Increase in policies

The data generated by the customer combined with the artificial intelligence algorithm They are the ones that allow insurers to offer better policies to their potential customers. AI is capable of recommend levels of coverage based on previous interactions with customers, or even on buying behaviors that fit similar profiles. Thanks to AI, the burden involved identify the optimal product for each insured it is no longer the sole responsibility of an agent of the company. Now this one is strongly supported by massive amounts of data, which can only be processed using artificial intelligence.

7. Customer Retention

Insurers who want to retain their customers must take into account the information generated about them, their behaviors and the risk of their policies ending. Only in this way will they be possible avoid wear and tear and errors with existing customers.Along these lines, artificial intelligence can process data collected by insurers; but also data from external systems, for example, demographic data or purchase history. The algorithm is able to use all of this data to identify customers who need more attention, so that the insurer can focus its efforts based on the needs of each of them. In addition, AI can also keep track of potential customers as they pass through the sales funnel, from knowledge to interest, decision and action. This makes it easier to direct actions aimed at each customer profile at each stage of the process.

All of the above-mentioned areas, susceptible to improvement if artificial intelligence is properly implemented, are aimed at improve the customer experience. In the end, for an insurance company, satisfaction with this is the main added value and should always be at the center. And, of course, we must not forget that customers are a priority before, during and after taking out insurance, which implies a very high level of care. Thanks to AI, insurers can meet every need with the desired speed and frequency.