“ PERSONALISATION IS A MUST IN THE INSURANCE INDUSTRY . THE QUALITY OF THAT CUSTOMER-CENTRIC SERVICE CAN MAKE OR BREAK A BUSINESS ”
INSURANCE
AI can be used by insurtechs to improve the underwriting process , gathering more data points that can then be used to provide greater insight into the level of risk that exists with every customer and every policy . With sound use of AI , insurers can reduce the number of man-hours that go into assessing risk , improving both the speed and cost of onboarding new insurance customers .
Take Cognizant , the New Jersey-based professional services company . In a case study published in 2021 , they revealed how they were able to utilise AI to increase the efficiency of underwriting by ten-fold . Cognizant was approached by a reinsurer planning to enter the US flood insurance market , who were seeking a smarter way to assess risk . The platform that Cognizant created took into account multiple data points – including flood hazard maps , geospatial data from geographic information systems ( GISs ), and historical claims – to provide the insurer with a clearer view of the flood risk involved in new policies . And the Cognizant solution equips the insurer with an ongoing snapshot of risk by assigning homes and businesses with their own risk score .
“ PERSONALISATION IS A MUST IN THE INSURANCE INDUSTRY . THE QUALITY OF THAT CUSTOMER-CENTRIC SERVICE CAN MAKE OR BREAK A BUSINESS ”
TEO BLIDARUS CEO AND CO-FOUNDER , FINTECHOS
How is AI helping insurers to make smarter decisions ? AI can be used in so many other ways to aid insurtechs , too . The technology has the capability of converting huge data sets into meaningful insights for insurers . Not only does this help assess risk , it can also streamline the processes involved with handling claims as they come in . Laborious tasks can be automated and AI can be used to identify anomalies that might be indicative of fraudulent or problematic claims .
For consumers who don ’ t currently hold a policy , AI can be used to reduce the workload on human customer service insurtechdigital . com 45