Artificial intelligence is the machine made intelligence, unlike human and animal intelligence. The machines display characteristics such as problem-solving, learning, duplicating human minds, adapting to the environment around them.
Although AI is not welcomed wholeheartedly, due to the risk factors it possesses such as replacing manual labor, not able to move and manipulate objects, not enough skills in reasoning, planning, learning, language processing. There are some who consider AI to be a threat to humanity.
But besides all these speculations against it, AI doe possess many rewarding improvisations in the field of mathematics, psychology, linguistics, computer science, philosophy, economics and many others.
Like many other platforms of human meds, AI has more extensive use and has established its position in the Insurance industry.
Why AI in Insurance
Like in any other sectors, the first and foremost reason is reduced work. It just makes it easy for both the clients and the customers. The insurance companies demand so much patience from people because of poor customer services and this is where AI lends a helping hand. Another major problem is ‘outdated policies’. Sometimes the companies just become too busy to keep a check on the policies and the customers have to pay for it. Also, AI spots fraudulent claims saving companies’ money. It sifts easily through a vast dump of data, a major challenge in the insurance industry.
The insurance industry is a sector where data is available in abundance which is hard to process. Thus big data architectures and techniques need to be revised. Artificial intelligence performs it well by steps such as data analysis, data collection, data cleansing, data statistics, and data storage. Thus they prevent errors which escape the human eye. Business Intelligence (BI) applications use data history and present data to take the right decisions.
AI recommends the type of policy suitable for a customer based on its background check. AI algorithm notifies the company if any claim is found fraudulent, helping them to take any human action if necessary.
Since AI tries its maximum to mimic human responses and reasoning skills, they perform as a bridge between customer and the company most effectively. Thus they save time for the employees, that too with a better service quality.
Powered up with AI, they provide customer services 24*7. They contribute quick and effective services in human languages. They have advanced language recognition, making possible of opening claims even with a selfie.
Although it is a drawback for insurance companies, this factor produced by AI benefits the customer. One may pay less in case of maintaining a healthy lifestyle; it senses through marketing and their social life profiles. Anyway, the companies are using sensors for a detailed report on lifestyles of the customers.
Wireless communication in future will be a great asset to insurance companies and AI just fits in. It’s used for helping with GPS patterns, road and traffic conditions thus helping avoid accidents.
Thus possessing many desirable qualities to help with the future of insurance sector, AI is being slowly welcomed into it. By tweaking some problematic areas AI could be a real plate turner for any sector just not insurance.