Artificial Intelligence in Insurance: Use Cases from Early Adopters
Celent has released a new report titled Artificial Intelligence in Insurance: Use Cases from Early Adopters. The report was written by Wenli Yuan, a senior analyst with Celent’s Insurance practice.
The report discusses real and potential use cases for leveraging artificial intelligence technology in the insurance industry.
Leveraging artificial intelligence, insurers are able to engage with consumers in a faster and more consistent manner. They can use virtual customer service representatives at contact centers to free up staff to deal with more complicated inquiries; use robo advisors to provide consistent, rule-based advisory services at an affordable cost; and use virtual assistants to guide processes and related transactions. Insurers can also upgrade authentication mechanisms to biometrics authentication, such as voice recognition.
Insurers could also optimize their products and pricing; predict customer needs and behavior so they can communicate with the customer at the right time through the right channel and recommend the right product or solution; optimize marketing and sales strategies; optimize underwriting models; improve operations for manually intensive core processes, such as data collection, underwriting, and claims assessment; and continuously predict and identify fraud.
In the age of big data, the insurance industry is facing a fundamental change. AI is one of the most important technologies to help insurers adapt, but they need to understand the benefits.
“Some pioneers have already leveraged AI in consumer engagement, products and pricing, marketing and sales, underwriting, and claims, as well as business operations and management. Celent suggests that insurers keep a close eye on artificial intelligence usage outside of the insurance industry, such as the development of self-driving cars, Watson for Oncology, etc.,” said Yuan.
“While many businesses embrace AI, insurers may need to rethink their product strategy. Some traditional risk may disappear or be changed, and some new risk may arise,” she added.