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Artificial intelligence and machine learning are the two most essential technological advancements catering to the insurance industry at large. Both these tools offer the AI-first insurers a competitive edge over all their competitors. Being an insurance service provider, it’s essential to incorporate these advancements in your business operation.
Not only does artificial intelligence serve many different benefits to insurers, it also caters to the customers as well. For example, the platforms, such as Salty, use artificial intelligence while providing embedded services to all their customers.
Here are the five undeniable pros of artificial intelligence in the insurance sector.
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1. Streamlined Processing of the Claims
Intelligent automation leverages the best ROI for standardized, repetitive, and attention-demanding workflows, and claim management exemplifies the same. This year, many insurance companies have already started to put plans for greater operational efficiency using growing technologies like machine learning and deep learning by artificial intelligence, robotic process automation, and the internet of things (IoT).
In terms of claims management, artificial intelligence aids initial claims routine, claims triage, as well as fraudulent detection of claims. Besides this, insurers can also use this technology to perform claims management audits. Thus, this avoides unwanted expenses.
2. An Enhanced Adjudication of the Claims
Both the insurance providers and customers expect a fast cycle time. Artificial intelligence increases momentum by taking over labor-heavy and time-consuming inspection tasks. The claims-management systems that artificial intelligence uses can process geospatial data collected by satellites, HD videos, and IoT data sets like object position, pressure, temperature, and more.
These sources can further provide the insurance company or business a full picture of on-site assets. According to various studies and reports, artificial intelligence has a booming scope in this area.
3. Rapid Digitization of the Documents Using Optical Character Recognition
Optical character recognition (OCR) is a tech-enabled process of recognizing handwritten texts and digits. The introduction of OCR proved to be a game-changer for improving operational efficiencies.
Using this artificial intelligence feature, you don’t have to manually re-type the information. On the contrary, your agents can use the automated system to capture and reconcile data from all the paper-based forms to further augment them with inputs from other mediums.
OCR can also pair up with computer vision and translate every pixel to a digital input. This technology can also extract all the relevant data from the ID photos to later add them to the profiles of the customers.
4. Paced-Up Underwriting
In terms of the underwriting process, the use of risk engines and rule-based evaluation is not sufficient to generate accurate estimates. That’s because the insurance scenarios have become highly complicated, thereby leading to rising fraud levels.
When computer vision technology is combined with IoT data, it becomes easy for an insurance company to record everything at the time of underwriting. Artificial intelligence also simplifies the process of making adjustments.
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5. Detection of Fraud and Its Prevention
According to a report, insurance companies lose around $40 billion a year to fraudsters. Fraudulent claims have become immensely widespread these days, and the figures are staggering. Thanks to the introduction of AI-powered fraud detection systems, it has become easy to address the shortcomings of earlier applications and prevent fraud events.
Machine learning and deep learning systems provided by artificial intelligence have made it possible to identify recurring patterns.
The growing popularity of artificial intelligence in the insurance sector highlights its benefits. AI holds a strong potential for any insurance company to improve its operational efficiency and also enable it to provide a digital-first customer experience to all its users. The users are also making the most of such growing technology.
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