Artificial Intelligence (AI) is all the rage these days, and with good reason. AI is transforming countless industries around the world, from transportation, to manufacturing and yes, even insurance. But what does that mean? Let’s take a closer look at how insurers are using AI to improve the insurance experience for consumers across the country.
The insurance industry has always been governed by data. In the past, if you wanted to compare policy options you had to call different insurers and repeat all of your information every time. Now, getting an insurance quote is as easy as visiting the right comparison website. A big reason for this is the industries adoption of AI.
CEO and co-founder of AMPLYFI, Chris Ganje spoke with Forbes about this change. “AI is having a profound impact on the insurance industry across the board from strategy and policy pricing to marketing and administration,” said Ganje. “AI is able to digest and analyze vast datasets at unprecedented speeds and accuracy. For insurers, this is enabling benefits on a number of fronts, such as speeding up quotes and pricing policies, enacting faster claims settlements, better fraud detection, and better customer profiling, for example, identify safer drivers through telematics data.”.
In today’s market, consumers are focused more on digital first solutions. One of the expectations of digital products is that they offer more personalized solutions than what you would typically find in a brick-and-mortar storefront. That personalization is only becoming more profound as companies gain access to more detailed data about their consumers.
Paul Firkins, Hood Group’s Business Development Director spoke with Forbes about this shift to personalized products, and how AI can take improve it. “With ever-growing sources of data; from the Internet of Things (IoT), Telematics and Mobile phones to name a few, only AI can harness and exploit this vast knowledge,” said Firkins. “It will turn the customer experience from a generic ‘one size fits all’ proposition to a journey where products are personalized, pricing feeds into a behavioral and perhaps lifestyle layer and claims are instantly settled; all linked together with seamless automation. This makes AI a tantalizing and increasingly competitive area for insurers to focus on.”.
Personalized products will transform many industries, but perhaps none more so than the insurance one. That’s because even before the digital age, the entire insurance business model has been predicated on risk assessment. What’s the key ingredient in accurately assessing risk? Data.
As the insurance industry gets access to more data, and more sophisticated AI’s to sift through that data, the industry will change. Insurance quotes will be uniquely personalized to an individual’s specific lifestyle. This will make for more profitable insurance companies, and more affordable insurance policies consumers. It’s a true win-win situation.