AI is changing the insurance industry, right down to policies

Insurance industry Policies - AI

Insurers are using artificial intelligence in a number of ways to improve offerings

Artificial intelligence (AI) has taken steps into many different kinds of business, and the insurance industry is no exception.

Technology is helping insurers to better understand consumers

The insurance industry is able to glean information about consumers from many different sources. After all, the average American relies on tech in a host of different ways, ranging from social media posts and fitness trackers to smart home devices and telematics dongles installed in vehicles to track driving behaviors. When all is said and done, there is a lot of data being collected about most people and sharing it doesn’t always require your direct permission.

Insurance industry - AI Data

It isn’t insurers specifically who are gathering this information. That said, they can learn a tremendous amount of information from the data brokers that do collect this info. This can reveal everything from the types of things you click online to the kinds of stores or restaurants you visit and even the location of your phone.

This data can provide the insurance industry with a clearer picture of policyholders

While all the data collected about an individual might not be usable by a person, feeding it to AI for an interpretation can change the way coverage is sold or purchased, as well as the way claims are filed.

As insurers increasingly deal with questions regarding privacy, fairness and transparency, shared data has the potential to make a difference in the struggle many people are facing in obtaining the right coverage for a cheaper rate.

Predictions about potential benefits of AI

While some feel that AI will only make things harder on people overall, others are looking at this technology as an opportunity to make life just that much easier.

For instance, shopping around for coverage in the insurance industry could be made notably faster and easier if AI is used, because a consumer might not need to answer as many questions.  Many data points will likely already be known about the individual, so by asking a few key questions about the desired coverage, the insurer will have all it needs to suggest the right policy and at the right price.

Similar things can be said about the claims process.  AI could help the insurance industry streamline the claims filing process, as well as speeding up the processing, making necessary decisions, and issuing payouts.

Furthermore, insurers would be able to use artificial intelligence to rapidly prioritize the most urgent claims, in addition to analyzing auto collision scenes and scanning medical records, more accurately identifying fraud indicators, so that legitimate claims can flow through more smoothly.

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