In this review, we will look at how these technologies can become even more effective in the insurance industry and the benefits that will accrue to both insurance companies and consumers.
How Widely Is AI Used in the Insurance Industry?
In Europe, almost all insurance companies use AI to some extent. Accounting systems are often built based on IT solutions from SAP, the most popular is the SAP S4/HANA system with built-in machine learning/AI functions. The use of such technologies by insurance companies is a necessity, because for the preparation of reports following international IFRS standards. Their systems must be able to process huge amounts of data in a short time while minimizing human error is desirable. In recent years, the insurance sector has begun to use artificial intelligence and other similar techniques in its business procedures. However, insurance businesses are far slower than other industries in introducing new technology, and since insurance is so diverse, the potential for AI and machine learning are practically unlimited.
What Are the Possibilities of Using AI in insurance?
In addition to accelerated financial reporting, there are many more options for using artificial intelligence in insurance. According to a study by insurance companies Munich Re and ERGO, insurers should pay attention to the following trends in the field of AI:
Use of augmented reality technologies for making managerial decisions; Reconstruction of the events that caused the insured event, using machine vision; Chatbots and virtual interlocutors as new channels of communication with clients; The use of high-precision data collected and processed by machines to eliminate the human factor when concluding insurance contracts and making reimbursement decisions; Automatic processing of texts in natural language (reviews, customer requests, etc.) to improve customer service; Implementation of virtual cybersecurity tools to prevent data leakage and fraud cases.
Areas of Priority Application of AI in Insurance
Here are the main areas of application of AI in insurance:
Essentially, AI has an impact on the cost-effectiveness of health insurance. Insurance firms provide innovative platforms to their consumers that choose the most appropriate coverage for the user, intending to promote a healthy lifestyle. The need and knowledge of varied data to establish each client’s profile ensures more accuracy and customization; Auto insurance. The primary benefit of AI vehicle insurance is that in the case of an accident, the same data can be used to analyze the damage in real-time using a smartphone camera. The AI insurance system can assess the severity of the damage, estimate the cost of repairs, and assess the impact of an accident on a driver’s future insurance rates; Home insurance. Insurance policy premiums may be determined uniquely for each residence using the Internet of Things and AI. Along with house insurance coverage, this may also offer smart home monitoring and emergency help.
AI Technology Trends
Most people would agree that the insurance industry could use a boost, and that is exactly what the introduction of artificial intelligence is aiming for. In the not-too-distant future, technology could drastically affect both insurance companies and people with insurance. Here are some of the trends you can expect as AI takes its toll on the insurance industry:
AR (Augmented Reality). Insurance firms may use the technology to digitally check homes after a claim is filed, or to research a car’s safety performance before establishing a price.; Data validity. The capacity to improve data accuracy so it can be used to make better business decisions. This will help insurance companies fight fraud and identify potential threats before they occur; Business without bounds. AI can assist businesses in better understanding customer patterns, making meaningful recommendations, and streamlining the process of classifying and advertising their items. This can assist insurance businesses in broadening their partner networks; Intelligent Distribution Networks. Insurance businesses would be able to upgrade their IT infrastructure with intelligent distribution solutions. This will alter the situation with mobile applications and internet tools, making website use more comfortable.
Summing Up
Summing up this review, it is worth noting that AI has the potential to change the insurance industry like never before for both insurers and their customers. The latter may like the improved user experience and affordable rates. Insurance companies can save money by automating many processes and speeding them up through the use of artificial intelligence. The possibilities of AI are endless, and over time we will see even more positive improvements due to its implementation in different workflows.
