How this technology is biggest innovation and opportunity for insurers this decade
The hyper growth of artificial intelligence (AI) technology has not been restricted to tech startups and robotics. The potential impact of AI and machine learning (ML) is fast entering all verticals. Even those more traditional ones. Research giant, McKinsey, published in 2021 a breakdown of how the insurance industry will be transformed by AI technology and how this innovation can improve insurance companies product, service and revenue.
What can it really be used for?
Insurance companies can leverage computers to begin automating basic tasks that are taking up hundreds of hours of employee time. This automation can start doing the heavy lifting on tasks such as; underwriting, claims management, fraud detection and customer service.
In addition to basic administrative time savings, insurance companies have the opportunity to utilise this technology to help reduce human errors.
With such a large amount of information needed for everyday activities such as fraud prevention analysis, staff can be unaware of rules or changes in legislation and thus make common mistakes.
By using this AI & ML technology, businesses can leverage complex image analysis that detect anomalies in submitted images and deduce patterns in user behaviour helping to identify fraud. Image recognition and anomaly detection capabilities is a hidden secret to scaling insurance solutions and decreasing fraud simultaneously.
Finally, AI technology can also be used to improve the services and the processing speeds of the insurance company itself. Whether it is image processing and validation, fraudulent pattern detection or report generation, the ability to improve the user experience and decrease processing time with high degrees of accuracy is hugely impactful.
How would it work in my business?
One doesn’t normally immediately think of startups when considering those that are helping the Insurance industry to innovate. However being a more risk-taking group, these businesses have been able to innovate ahead of the larger industry leaders and show what is possible.
Leveraging digital solutions and platforms that specialise in AI and ML based technology focused on the sector is an easy way for businesses of all sizes to benefit without the time or financial investment needed.
Insurtech solutions such as DriveX, can offer businesses value with image recognition delivering vehicle positioning, VIN number scanning and ensuring high image quality in user uploads. By partnering with focused providers, businesses can benefit from more and more features being added, with just one example being automated damage detection.
Overall AI and ML are valuable technologies in helping to develop and innovate in a traditional sector. Partnerships with smaller focused startups delivering valuable solutions, is an easy way for larger companies to immediately plug into the future of the insurance industry and get ahead of their competitors.
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