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The Contributions AI Can Make to the Insurance Industry

The term “artificial intelligence” tends to bring to mind ideas of robots operating in factories or complex computer systems that the average person simply cannot understand. As AI technology develops and advances, however, the concrete applications of AI systems and machine learning algorithms will affect more and more aspects of our everyday lives.

AI in claim processing

AI and the insurance industry

In the case of the insurance industry, artificial intelligence technology has the ability to help companies improve their customer service through implementing automated services controlled by AI systems. As the world of insurance grows increasingly competitive, AI can also play a major role in helping these companies reduce their operational costs through streamlining some of the most labor intensive parts of their work. Not only will this increase the bottom line for the insurance companies, but also could improve the overall value of the insurance products offered to the client.

WorkFusion, a leader in the intelligent automation industry, believes that artificial intelligence systems have the ability to help insurance companies to expedite their claims processing methods. Traditionally, insurance companies would have to use human labor to retrieve specific claim information, input it into their system, and then determine whether or not to actually pay the claim. Once the claim is either approved or denied, the customer would have to be notified, and payment would potentially have to be delivered.

This is obviously a labor intensive process that required many man hours of work and presents a major operational obstacle for the efficient management and operation of insurance protocols. Not only is the claims process work intensive, but there are also complicated decisions that need to be made regarding the validity of a claim, whether it should be paid, and the percentage that needs to be paid.

AI speeds up claim processes

To move the claim process along, there have traditionally been many steps that require the claim to move between different departments within the company. This unfortunately has led to negative customer experiences.

One recent survey found that around 41% of all people who have filed an insurance claim are likely or very likely to switch to another insurance companies within the next year. The sluggishness and complexity of claims processes is thus one of the most important customer complaints.

WorkFusion, on the other hand, reports that their machine learning models can help insurance companies process claims 80% more quickly while reducing by 50% the number of people actually involved in the process of moving a claim forward. This model increases the efficiency through mining knowledge bases, auto-validating policies and matching key facts from the claim to the policy. Furthermore, it can also make automated decisions and routinely send data into the system to facilitate payment of approved claims.

Meeting with insurance client

AI enhances customer satisfaction and loyalty

In terms of increasing customer satisfaction and client loyalty, a more efficient claims process with the help of AI technology is essential. In moments of loss, serious accidents, or tragedy, people do not want to have to deal with a slow and bureaucratic claims process, and machine learning systems can make the process smoother and quicker through lessening the claim handler´s workload and thus more quickly adjudicating claims.

As an added benefit to insurance companies, AI system can also help to detect and prevent fraudulent claims and thus limit claims leakage, which is a major source of revenue loss for the industry.

Conclusion

Better, faster, and more secure claim processes mean win-win situation for both insurance firms and clients.  When both stakeholders win, the insurance industry flourishes.

About author

Ivan Widjaya
Ivan Widjaya 3115 posts

Ivan Widjaya is the Owner/Editor of Noobpreneur.com, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.

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