Artificial intelligence (AI) has been making headlines across the internet for a while now. We have had several AI inventions over the years. The list includes virtual assistants such as Siri and IoT devices like Roomba.
We have also experienced improvements in manufacturing thanks to robotics, a subset of AI. Many manufacturing companies have profited from using a combination of AI and human labor in their various processes.
Recently, the world has been going crazy about ChatGPT. ChatGPT is built on an artificial intelligence model designed for natural language processing tasks. The AI is remarkable and can hold a decent conversation.
Apart from that, ChatGPT is also creative. People across the world are testing the limits of the software using prompts. Most prompts often yield results like poems, stories, plays, essays, code, and SEO content.
Some innovative users use ChatGPT results as prompts for other AI and software. The results of this include AI art and music composition.
Different industries are embracing the use of AI today. This has enabled them to increase their profits and improve their services to new heights. Contrary to popular belief, setting up AI for your business is not difficult. The process entails researching, getting the software, conducting tests, and deploying your AI model.
Data is readily available today and this has made the adoption of AI easier. You can use your data to train machine learning models to help make better decisions. To add to that, some companies deal in setting up AI for you.
You do not have to worry about how to get started. These companies handle everything including model monitoring and model deployment. Some even offer AI software as a service to reduce the cost of implementation.
Industries such as insurance, and healthcare, are enjoying the benefits of incorporating AI. AI for insurance is transforming how insurance companies handle business. In some cases, AI is helping companies get rid of some of the biggest problems in the industry.
Let us look at how AI is reshaping insurance today:
Use of AI Chatbots
You may have come across chatbots online and did not even realize. Chatbots are computer programs that simulate human-like conversation. Some chatbots are built to give pre-programmed responses, while others use AI to generate responses.
AI-driven chatbots use natural language processing (NLP). This helps them understand users and respond. This makes their conversation more human-like and provides accurate results.
Insurance companies can use chatbots to improve their services and help users. For example, chatbots can help with user onboarding. The chatbots can also answer user questions and guide users. They come in handy when users need help filing claims or navigating your online platform.
AI and Risk Management
You can use AI in your insurance company in risk management and help you make adjustments to handle risks. One of the risk factors for insurance companies is their customers.
Insurance underwriters determine the risk level of insuring a particular individual or entity. This involves a lot of complex calculations and factors in their knowledge of insurance policies. However, even with that, there are things underwriters may still miss.
Fortunately, using AI can help improve the process of underwriting. There are AI algorithms that can classify unstructured data. This can include data from the internet and social media accounts.
The AI can use this data to identify patterns and convert them into risk predictions. This can help insurance companies process insurance applications better.
Personalizing User Experience
The use of AI can help you create a better user experience. This could mean staying ahead of your competition for longer. Using AI allows insurance companies to personalize user experiences by creating profiles.
Since insurance companies collect some data from their customers, they can use AI to make personalized suggestions. This is similar to how e-commerce platforms use your data to make purchase recommendations.
The AI can use their insurance history, and lifestyle factors to understand the customer’s needs and preferences. This data is useful when recommending specific insurance products or services. The best part is that the recommendations are created for each customer and are specific to their needs.
An example of such a case is AI recommending that you enroll your newborn into your family medical cover. This seems obvious, but you will be surprised how often people forget to do so.
Marketing plays a vital role in keeping a business alive. Marketing comprises several integral parts. In regards to insurance and AI, you can use AI to handle your leads.
If your insurance company does all its marketing in-house, you can use AI to help with your marketing team. AI comes in handy with data-related tasks like analysis and classification of leads.
AI can help you analyze the success of your marketing campaign and help you group your leads. You can put your data in a ML classification model that will help you group your leads better and faster. This will fast-track your lead generation cycle and help you convert potential customers.
Improving Handling Claims
One of the challenges facing insurance companies is a lack of trust. There is always a conflict of interest with insurance companies. This is because the companies make more profit when they pay fewer claims against the number of premiums paid.
As a result, fewer people are willing to take up insurance and see it as an unnecessary cost. There is also the issue that some claims take too long to settle. The use of AI in insurance can help resolve these issues.
First, using chatbots can assist in fast-tracking the process of handling claims. This reduces the time it takes the user to file a claim. You can also leverage the use of AI computer vision.
You can use AI to locate and assess the amount of property damage. This will reduce the time it takes assessors to complete their work. You can also use a machine learning model to calculate and make a quotation for the filed claims.
There are a lot of use cases of AI today and they will continue to increase over the years. AI-based solutions are taking over and we should embrace them. There are a lot of ways you can use AI in insurance.
AI can help with communication, risk management, and improve user experience in insurance firms. This is a win-win for both parties. Customers get a better experience while the companies reduce risks while making profits.