The insurance industry has been around since the 1700s and until recently, has been fairly traditional in its practices and procedures but as tech and particularly AI have advanced in recent years, things have changed quite drastically. The integration of innovative technologies is revolutionising the way insurers operate, from underwriting and risk assessment to customer engagement and claims processing, and as a result the insurance landscape looks very different than it did even a few years ago.
Let’s take a closer look at how AI is changing how insurance companies operate.
Telematics and Usage-Based Insurance
Telematics technology, which involves the use of GPS and onboard diagnostics, is transforming the auto insurance sector. With telematics devices or even smartphone apps, insurers can monitor driver behavior, such as speed, acceleration, and braking patterns. By tracking these factors, insurers can offer usage-based insurance policies, where premiums are calculated based on individual driving habits.
Claims Processing and Fraud Detection
AI is revolutionising claims processing by accelerating the entire journey, from claim submission to settlement. Hundreds of insurers are now using AI to assess claims, check information, and process payments more efficiently. Additionally, AI-powered fraud detection systems can analyse claims data and identify suspicious patterns, helping to combat fraudulent claims effectively.
Using AI for Vehicle Damage Assessment
Vehicle damage assessment is being increasingly carried out by AI rather than in person evaluations. The integration of AI in vehicle damage assessment means to faster and more accurate claim processing as well as reduced fraud.
Deloitte explains how AI will be hugely beneficial to insurers. “Our AI engine evaluates different severities of damage across car parts and estimates the associated repair costs in seconds when connected to a repair cost database. The solution benefits insurers by transforming the claim value chain. It can accelerate time-consuming claim settlements and enhance the customer experience, while also increasing efficiency.”
Companies are using AI to improve and streamline processes
Companies specialising in estimatics solutions are using AI to deliver automotive repair data to the repair, insurance, fleet and leasing industries. Using the latest technology, GT Motive processes more than 5 million estimates every year and in 2022 they launched GT Fusion which they describe as “an innovative platform that combines their core capabilities in repair estimating data with AI technology partners to improve motor claims processes with greater automation.”
Thousands of other companies are using AI in many ways to not only speed up timelines and keep overheads low, but to make more accurate, data-driven decisions.
Talking of Streamlining…
AI is also being used to streamline underwriting and risk assessment for insurance companies. Traditionally, insurance underwriting and risk assessment processes have been time-consuming and labour-intensive. However, with the advent of technology and AI, insurers can now access vast amounts of data to make more accurate and data-driven decisions. Put simply, machine learning algorithms can analyse data sets in real-time, identifying patterns and predicting risks with greater precision.
Better Customer Service
One big advantage of AI is being able to offer a superior customer experience. AI-powered chatbots and virtual assistants can engage with customers promptly and efficiently meaning they can get answers about their policy quickly. AI-driven solutions can typically answer policy-related queries, offer real-time quotes, and even guide customers through the claims process meaning they don’t have to stay on hold on the phone or wait for days for an email from a customer service team.
We wrote last month about how AI and the auto-world are linked, and we can certainly add insurers into the mix. Insurance is notoriously arduous to navigate but with the use of AI, and of course the support of S&G, insurance matters should be smoother than ever before.
