Key PointsWith proliferation of insurtech, insurers have access to more and better data than ever…
April 12, 2018|
Insurance carriers are embracing emerging technologies more and more on their way to conquering the industry’s digital transformation. At the same time, Artificial intelligence (AI) solutions have matured into robust but approachable investments that can help with this change. Insurers are prioritizing AI technology projects into their core functions now that artificial intelligence products offer wide-ranging applications for insurance, from virtual insurance agents to operational improvements. The trade press is testament to this, increasingly sharing announcements from one company or another that has launched another AI-centered initiative.
Some AI projects have targeted improvements and efficiencies to internal processes, but most firms have been concentrating on the benefits of virtual insurance agents (online agents for insurance). Yes, there are great gains for these early implementers of AI. They are at the forefront of this revolution but many carriers are still figuring out how to make sense of Artificial Intelligence with respect to their own needs and capabilities. How does a company develop the right AI strategy? What kind of insurance software consultant can guide you through this churn of confusion and help avoid the risk of an expensive, failed investment?
A review of the currently launched AI tools and virtual insurance agents helps delineate two categories of AI approaches within the insurance organization. Some insurers have been exploring ways to use AI to improve internal operations while the bulk of companies have made their mark with AI solutions that touch policyholders and prospects directly.
A small set of insurers have chosen to bring artificial intelligence solutions to their internal operations, using it to tune for productive, cost-effective operations. Tools such as advanced analytics of text and other data, visual recognition of both faces and digital images, machine learning, and the generation of natural language all have applications that can bring valuable improvement inside the company. These strategies seek to solve particular issues or inefficiencies particular to that firm, or, more generally to reduce risk. Included in this group of AI projects are those that help insurers integrate their own patchwork of distributed systems and databases with those systems that reside outside the organization.
The majority of insurer AI investment has been where they directly connect with consumers–to keep their policyholders engaged and to build their book of business. Virtual insurance agents, speech analytics, recommendation engines for customer service and product selection all serve to directly affect the insurer’s relationship to the customer. Unlike early AI attempts created in-house, insurers are turning to insurance software consultants and AI technology firms to integrate and launch enterprise-grade customer service, claims and sales capabilities. These AI-out-of-the-box solutions bring users a conversational experience to Insurance selling, claims and support. It is vital to select the right partner, an insurance software consultant and AI technology firm, that will help develop strategies and goals for the AI projects, will minimize the cost of integrating and launching AI-enabled customer experiences, and will help insure the investment evolves and thrives as new customer communication channels continue to evolve.
AI has the ability to transform your relationship with policyholders and prospective customers. It is difficult to know where to venture forward. The primary questions to answer: Which AI strategy will benefit your company the most to reach your goals? One aspect of setting goals is to know what is possible, the cost and potential benefits of the various options, and getting advice of what is developing in the near term and in the next few years. Expert guidance from the right partner can take ready insurers over the line.
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