AI IN INSURANCE
Yet , no matter how useful AI may be for an insurer – or even how much simpler it makes the customer experience – AI will have to lower premiums before customers fully embrace it . That is the cost of change , even change for the better : customers want to realise actual financial gain . That may take the form of reducing the incidence of fraud , and subsequently minimising loss to the insurer , or it might be something else .
Meghana Nile explains that insurance customers often misjudge the amount of cover they need , taking out the wrong policy and leaving themselves underinsured or over-insured . This is one way that AI can help achieve savings .
“ There is an opportunity for conversational AI to right this wrong ,” she says . “ By putting the customer in control of the conversation , they ’ re able to ask the right questions and AI can pick up on verbal triggers that ensure customers have the right cover in place . This can result in fairer pricing .
“ Furthermore , by focusing on creating efficiencies , AI can also result in leaner operational costs and lower expense ratios , which can ultimately be passed back onto customers .” insurtechdigital . com 89