Artificial Intelligence in Insurance-Sector

Introduction

Wireless mobiles, driverless cars, cashless transactions etc were un-imaginable a couple of years back. But they are a reality now. Now if we say insurance services like claims processing, customer service, and data management are all automated, scalable, and secure from cyber threats would be a dream come true. Welcome to the future where all this will be a reality, thanks to Artificial Intelligence.

The insurance sector is a data-driven sector where data in due time is most crucial for the success of this business. Already Insurance companies are automating tasks like claims management, customer service, and document creation.  These tasks are time-consuming if done manually.  AI has reduced costs, and increased efficiency with minimal errors in their work.

AI has helped reduce the time it takes to process applications. It helps detect fraud and also supports customer inquiries through chatbots.

Change is inevitable

Regardless of what business or industry we are in, change is inevitable. It is inevitable and inescapable. After the COVID-19 pandemic, businesses have changed their way of working, accommodating technology and adapting to new digital practices. The insurance sector is no exception. Insurance carriers, agencies, brokerages, and MGAs/MGUs are all making a point of keeping abreast of technological advances.

Due to its early adoption of new technologies and its importance as a hub for various AI solution providers, North America dominates artificial intelligence (AI) in the insurance sector. Asia Pacific is projected to witness significant growth between 2021 and 2028 due to increasing government policies to promote digitization and rising investments in cutting-edge technologies such as AI and IoT. This will increase the demand for AI across the region’s insurance sector.

The competitive landscape of the insurance market using artificial intelligence (AI) gives information to competitors.  Information includes an overview of the business, financials, revenue, market potential, investments in R&D, new market initiatives, regional presence, corporate strengths and weaknesses, product launches, product breadth and depth, and application domination. The data just mentioned relates to how much attention companies are paying to artificial intelligence (AI) in the insurance industry.

Some of the popular AI use cases in claims management include:

• Initial claims routing

• Claims triage

• Fraudulent claims detection

• Claims management audit 

Rapidly Filing Claims

Both insurance companies and their customers need fast turnaround times. To increase that speed, the hope is that artificial intelligence can take over some of the labor-intensive and often quite dangerous inspection tasks. When AI systems are used in conjunction with data collection technologies, evidence collection and analysis can be much faster and safer.

AI-based solutions for managing claims can efficiently process:

Geospatial data sets collected by satellites (GIS), HD videos or images captured by a drone, and IoT data sets with temperature, pressure, object location, and more

From all these data sources, you can get a complete picture of the assets on site.

Moreover, the algorithms of ML /DL can evaluate such data sets more accurately than the human eye alone.

Digitize documents faster with OCR

OCR stands for Optical Character Recognition and is a technically supported process for recognizing handwritten numbers and text.

With traditional insurers still relying heavily on paper-based forms and printed documents, OCR has the potential to significantly improve operational efficiency.

Detection and prevention of insurance fraud

AI-powered fraud detection systems can help correct the shortcomings of previous applications. It can provide valuable information to improve the judgment of human analysts.

 Machine learning and deep learning systems are good at recognizing recurring patterns. This ability makes such algorithms strong contenders for detecting anomalous behaviour within a system or between individual customers.

About Apoorva: 

Apoorva is a technology services company that assists software products with ideation, developing prototypes, programming, creating a digital marketing presence and accelerating sales through direct contact. Over 150 for-profit and non-profit organizations, such as Xcel Energy, PeopleCare Health Services, Frontier Airlines and Centers for Spiritual Living have trusted Apoorva to build software. 

Apoorva was founded in 2001, has more than 50 employees, and uses proprietary and proven methodologies to bring technology products to the market. Contact us / Visit apoorva.com for more information.