Artificial intelligence ( AI ) is bringing about a revolution in the insurance industry – for use in customer service and claims handling , certainly , but also in areas like fraud prevention and analysis . Indeed , such is the importance of AI to the insurance sector that McKinsey , in its Insurance 2030 report published in 2021 , described AI as having the potential to “ transform every aspect of the industry ”.
“ Artificial intelligence ( AI ) offers benefits across the entire insurance sector ,” says Meghana Nile , CTO for Insurance at Fujitsu . “ Claims settlement is one area where automated technology is increasingly playing a significant role . For example , in auto-insurance , insurers can use AI to assess simple claims in just six seconds based on smartphone photos sent by the customer , compared to humans who take an average of six minutes and 48 seconds with the same information .
“ Enhancement of the customer experience in the claims settlements is a big AI bonus too . Technology makes the process of buying a policy much simpler with fewer customers discouraged by the complexity of typical policy forms . And with simple queries fielded by AI , human agents have more resources to focus on more difficult service areas , which results in issues being dealt with much faster , smoothing out the experience .”
Nile also believes that AI is transforming fraud detection , monitoring potentially fraudulent activities continuously and using third-party , unstructured data analysis to give insurers extra context into those patterns of behaviour .
Nigel Lombard , CEO and Founder of Peppercorn AI , summarises : “ To date , insurers have mainly focused on using AI in customer service and claims processing .
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