Impact of AI on Insurance Sector’s Digital Transformation

mediumThis post was originally published by Ryan Williamson at Medium [AI]

The insurance sector, much like pretty much every other industry in the world, has been racing to integrate a variety of novel technologies. Among them, there is one in particular that offers great promise: Artificial intelligence. This can be ascribed to its ability to help improve marketing and sales strategies, effect better risk management, and enhance the efficiency of a given insurance provider’s overall operations.

Allow us to further demonstrate the value artificial intelligence offers for the insurance sector via some of its top applications in such companies.

  1. Process automation: Artificial intelligence enables companies to automate their processes and effectively that. They can leverage a combination of cognitive technologies and RPA tools to automate tasks such as claims processing, customer service requests, etc. This also helps accelerate operations and customer-facing processes, in general.
  2. Better value from data: With AI in their arsenal, insurance companies can keep up with the constant changes in the market. The technology helps them ensure robust feedback mechanisms for their systems to learn from and then adapt to the business’ evolving requirements.
  3. 24×7 customer service: Customers today want to be able to reach their service providers round the clock and artificial intelligence has lent incredible assistance in this regard. This technology allows insurance companies to dispatch chatbots, etc. to provide customer service anytime.

Now, let us also take a look at some of the artificial intelligence and other technology-related trends in the insurance sector.

  1. An abundance of data: It is not news that we generate a staggering amount of data every single day. Plus, with the increasing number of devices we keep adding to the mix, research suggests we will have over one trillion connected devices by 2025. The abundance of data thus generated will help insurance providers to gain a better understanding of the customers they serve and use that information to better serve their needs.
  2. Evolution of cognitive technologies: As cognitive technologies become the benchmark strategy for dealing with humongous data streams generated by insurance offerings associated with people’s activities and such. The prioritization of such technologies, then, will empower insurance providers with access to adaptive data models that will, consequently, drive the new expansion of product portfolios as well as how companies engage with customers. In addition to that, such technologies are also assisting carriers’ efforts to identify trends, risks, and other important factors in real-time and quickly make necessary changes as well.
  3. Data ecosystems: With data being rendered critically important, companies in the insurance industry, as well as others, will team up to establish systems to enable data sharing for a variety of use cases, albeit under the purview of an all-encompassing regulatory framework.

Artificial intelligence offers an abundance of potential. Furthermore, as it becomes more and more prevalent, the insurance sector, along with other industries in the world, will need to not only gain a deep understanding of this change but also brace to adapt to it properly. So, in the face of such intense digital transformation in the insurance industry, how can companies respond? Well, as technologies such as artificial intelligence and others transform processes, operations, etc., one must understand the trends driving this change and shaping the future of the sector. This will empower them to adjust the business and thus, remain ahead of the curve.

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This post was originally published by Ryan Williamson at Medium [AI]

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