AI and Insurance: how harnessing your data will drive growth
Data has become one of the most important assets in global business over the past years, with the Economist considering it a more important resource than oil.
However, for many insurance providers, the abundance of information collected and managed creates great challenges, particularly for those organisations ill-equipped to effectively leverage its potential. Digitised data is produced and collected constantly, from telematics information to IoT usage reports tracking individuals’ actions. Even data as simple as credit history and vehicle records, when properly harnessed, can augment your organisation’s internal efficiency, deliver an experience to delight and engage customers, and ultimately promote business growth. On the other hand, failure to properly address the enormous data pool you are now faced with, and properly understand customers and their requirements, will see insurers quickly fall behind the competition.
Strategic adoption of the right emerging technologies, coupled with techniques such as data integration with communication platforms and customer interfaces, can enable you to analyse and process this information at scale.
According to Gartner, the global business value of Artificial Intelligence (AI) is set to reach $3.9 trillion by 2022, as companies harness the information they gather on a large scale to drive satisfaction and promote efficiency. With the introduction of AI and Machine Learning into the insurance industry, -providers can dramatically reduce manual effort put into data analysis and the understanding of client requirements, and improve customer engagement by automating many routine yet time-consumptive processes.
By combining an automated platform for customer contact with back-end systems such as CRM, customers can settle minor claims without having to interact with agents.
Similarly, the integration of AI with image recognition software means a photograph of a simple smashed window could be intelligently and quickly analysed, and the claim settled with the customer within the hour through automated communications. With routine claims resolved automatically, contact centre agents are freed up to deal with larger or more complex cases.
AI, along with automated communications, allows insurers to enhance operational efficiency and improve customer engagement by automating underwriting, speeding up claims management, and extending service hours, all while avoiding sizeable OpEx investments.
A data-driven approach provides insurers with a detailed 360° view of the customer. This means the customer journey can be easily planned, managed, and often automated, with full channel fluidity offering customers a consistent experience no matter how they get in touch. Digital initiatives such as these contribute directly to increases in actual business value – a critical factor for a meaningful ROI on any new technology implemented.