It makes sense to connect artificial intelligence and technology to sectors like manufacturing, marketing, and telecommunications. Maybe not so much in the insurance industry. Clients continue to receive cards in the mail, visit agents in person, and discuss claims with adjusters. However, technological advancements are changing how insurance companies offer coverage and how clients receive support.
As technology develops, routine insurance-related tasks—from filing a claim to modifying a policy’s coverage – will increasingly be automated and predicted. The connection between suppliers and customers is shifting as the sector adopts innovations like artificial intelligence, machine learning, and other technology.
The human touch won’t necessarily disappear as a result of more effective procedures and data analytics. However, these developments will improve accuracy, open up information, and have the potential to significantly improve carrier-customer communication. There are five ways that technology is altering the insurance industry from the standpoints of insurance companies and customers.
1. Faster Claim Estimates are being Offered by Artificial Intelligence:
Building machine intelligence that can carry out tasks that typically require human intelligence is the goal of the field of artificial intelligence (AI), a subset of computer science.
Usually, when a policyholder submits an auto claim, an adjuster is required to be present to evaluate the extent of the car’s damage. The customer must wait for the adjuster to meet them after starting a claim online or over the phone. An adjuster examines the vehicle, notes any flaws or losses, and then provides an estimate. The time between the client’s initial contact and payment may be extended by a few days due to that estimate.
The customer is most likely stuck in a car with obvious damage or without a car in the meantime. The amount of time it takes insurance companies to provide and process estimates is decreasing thanks to artificial intelligence. Policyholders can quickly use apps to take pictures of the damages they need to repair rather than waiting for an adjuster. Within seconds, an AI-based algorithm generates an estimate. As a result, insurance companies are able to pay the policyholder or repair shop more quickly.
2. Machine Learning is Automating Claim Forms:
Machine learning (ML) is a type of AI that uses data to analyse data, learn from that analysis, and then apply that learning without the assistance of a human. This branch of artificial intelligence keeps rising in importance within numerous organisations.
After a serious accident or auto accident, filing a claim can be nerve-racking. Customers may find it difficult to recall important details, such as the event’s time, due to shock and anxiety. A policyholder may find it stressful to go over a form’s details online or in person because they may be too much for them to handle. However, insurance companies frequently emphasise the significance of making claims as soon as possible.
Some of the difficulties that customers might encounter during the claim process are reduced by machine learning. Forms that have already been pre-filled with information from a client’s history and policy reduce the need for repetition. Efficiency is increased and the likelihood of errors occurring during the filing process is decreased thanks to machine learning.Since contractors submit claims on behalf of clients using their policy numbers, even small claims like windshield repairs are simplified.
3. Premiums are Determined by Telematics:
Many insurance customers might not be familiar with the term telematics. However, they might already be aware of this new development in auto insurance premiums thanks to their existing carriers. Some insurance companies advertise a new technology that tracks customers’ driving habits in bill messages and emails. It is a monitoring system that is installed in a vehicle and tracks a driver’s routines.
These gadgets are used to gather information about places, speeds, travel distances, and collisions. In order to calculate individual premium costs, insurance companies then take this information into account. Theoretically, those who drive more aggressively and frequently may have to pay higher premiums. Customers who are responsible and drive less will experience lower premiums. Telematics improves risk assessment precision for providers and rewards safe drivers.
4. Damage is Being Evaluated by Drones:
In general, more and more industries are using drone technology. By using drones to evaluate damages, the insurance sector is already helping to fuel that expansion. Soon, homeowners who file insurance claims for storm or roof damage might be shocked to see a drone flying over their homes.
Insurance companies can send drones to take pictures of hail and wind damage instead of relying on roof inspectors to do so. Drone technology improves the effectiveness, precision, and security of these assessments. After severe storms, providers can use drones to reach areas that are inaccessible to humans. Additionally, this technology may be able to record damage from hazardous or impractical angles that are out of human reach.
5. Blockchain Technology Increases Certainty and Trust:
The stakes have never been higher when it comes to data integrity and fraud prevention, particularly in the insurance sector.
The type of data that is being transmitted across networks makes insurance companies a top target for hackers. Due to this, blockchain technology has been applied to the insurance sector and is now a standard tool for ensuring the security and integrity of data.
Blockchain is a digital ledger that can never be altered and records all transactions. It is regarded as impenetrable and secure because it is dispersed across a network.
Within the insurance eco-system, communication between applicants, policyholders, underwriters, and other stakeholders is essential, and blockchain offers a method of communication that virtually eliminates data security risk and gives participants confidence that their data will not be compromised. A business that can use blockchain technology to support transactions has a clear competitive advantage.
6. Social Media Improves Accessibility to Customer Service:
Nobody desires to spend hours on hold or wondering if their insurance agent received their message. This was the reality for the majority of policyholders waiting for a phone call before social media and chatbots. It might take weeks to ask a question, attempt to purchase a new policy, or modify current coverage. However, it is now simpler to get customer service because the majority of the top social media platforms are now used by insurance companies. Customers can also get assistance from chatbots and email when they need quick answers to things like policy and coverage questions.
According to research, consumers now prefer messaging over other customer service channels. Routine inquiries about changing deductibles, updating addresses, and filing claims can be answered by chatbots and instant messages on social media. On social media platforms, customers can send direct messages and receive responses the same day. Carriers frequently have the ability to solve problems quickly, or at least get things started. Customer satisfaction rises as quality of service improves.
In many industries, technological advancements are changing how customers and businesses communicate with one another. One of those is insurance, where carriers are incorporating AI telematics and machine learning into their business models.
Since coverage and service are becoming more precise, both providers and customers stand to gain from these improvements. Not to mention improving accessibility and streamlining procedures. Although technology is here to stay and will continue to play a role in improving the overall customer experience, human-to-human interaction will still be very important.