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Insurance Industry Embracing AI and Big DataBy CIOAdvisor Apac | Thursday, April 04, 2019
Insurance industry revolves around risk and threats completely. The industry requires predicting risk and threats associated with a person, organization and things; which is possible only after a detailed analysis of data gathered from the past. Artificial intelligence (AI) and big data technology serve as tools to carry out a cumbersome task. Embracing the technology will provide the company an edge over others keeping them ahead in the competition.
Personalized Insurance Plans
Predicting risk with an individual is possible by a thorough analysis of habits and behaviour. AI enabled devices are capable to monitor and records clients habits and behavioural activities giving the insurance company data to predict the vulnerability of his/her to risk. This data analysis will support companies to be decisive about the client and provide each client with a personalized plan depending on his behaviour. Such features will also enhance customer relationship and boost the company’s growth.
Already facial recognition has been adopted in the insurance industry for unique identification purpose. AI has the potential to raise the bar by predicting diseases and disorders as insurance of body parts has also come into existence. Many disease and biological disorders show symptoms on the face; AI will detect those and alert the insurance company with the same. Superfluous expenditure can be cut down and funds will be regulated for other client services.
Predictive Cyber Insurance
Cyber insurance is completely a new category in the insurance industry. With the help of big data, chances of cyber attacks can be predicted. Past records and recent activities will help in analyzing the risk and loss that could occur in the future. It can be a two-way approach where cyber insurance company and AI can work together to enhance their insurance product offerings. Similarly, a company’s security organizations can leverage AI to build a more efficient system against attacks, also against the future ones.
Improvised Customer experience
Apart from personalized insurance products, chatbots are a very good medium to enhance customer experience. These chatbots provide each customer individualized experience for which it depends on machine learning technology. This allows the companies to migrate the workforce in other productive areas. Big data technology analyzes the traits and behaviour of customer and machine learning acts accordingly providing a higher number of satisfied of customers.
Faster Claim Settlement
Claim settlement determines the efficiency of an insurance company as of how quickly it settles the claim. Big data and AI are way ahead of traditional database management and computing methods respectively. Insurance firms can leverage these technologies to fasten the process which will not only save time and human effort but also will enhance customer experience further giving them a robust stand in the market.
Analysis of such immense data that insurance industry withholds is not in range of human capabilities and that too with precision. AI and big data are a perfect solution and also with outcomes it is possible to minimize the fraud.