Insurance sectors are increasingly investing in latest technologies in order to improve their customer experience. According to the new report by tractica the investment in AI applications has increased from $3.2 billion in 2016 to $89.8 billion by 2025.
“Artificial Intelligence Software Market to Reach $89.8 Billion in Annual Worldwide Revenue by 2025”
Applications of Artificial Intelligence in the insurance industry will change the way companies carry their business. AI applications such as Machine Learning, Robotic Process Automation (RPA) Text Analytics and Natural Language Processing (NLP) has an impact in the insurance field.
Machine Learning:
Machine learning algorithms play a key role in all business areas from product design, sales to services and settling claims. Machine learning in the insurance industry is also useful in fraud detection, risk evaluation and identifying cross-selling opportunities. Some use cases are telematics, Customer engagement, claim management.
Text Analytics and Natural Language Processing (NLP):
Customer experience and customer engagement have been the key business trends in insurance companies. Digital technologies have offered a variety of options to improve the customer engagement and experience.
Text analytics and Natural Language Processing (NLP) have redefined self-service capabilities and are taking customer engagement to the next level.
Customer apps are now equipped with AI-powered chatbots that can hold meaningful conversations with consumers to understand their needs and address them. Mobile Apps, Chatbots are some key elements to improving the customer focus issues highlighted earlier and these can be assisted by AI to provide customized experience to individuals.
Robotic Process Automation(RPA)
Many insurance companies are adopting automation technologies to help them streamline their business processes and to get more clients on-board. If we talk about great automation properties then what else could be better than robotic process automation(RPA). RPA can provide added support to help insurance companies automate entire workflows and to reduce the work pressure of an Insurer. It provides an end-to-end automated solution for business problems. Automated underwriting and customer experience are some of the examples of RPA.
Insurance expert’s view on how AI will impact the insurance industry by 2025
Jack M Cordes, Principal Agent @BridgeFirstInsurance says-
“AI can help with tedious data collection to generate quotes as well. This will free time up for agents to handle more complex questions and focus on their true value-added benefits like strengthening client relationships, understanding their clients’ needs and proposing solutions”
What is your take on AI will either significantly alter or completely transform the overall insurance industry by 2025? We would love to know your views, write us at hello@mantra.ai or you can write us in the comments below.