Artificial intelligence, or AI, can help insurance companies thrive in an ever-changing landscape indefinitely. AI is a hotly-debated subject, with some arguing that it’s a dangerous development and others insisting that it’s an asset to consumers. No matter which side your opinion may fall on, there’s no doubt that it can offer many benefits to businesses — and it’s particularly beneficial to the insurance industry.
If you’re wondering how AI can benefit insurance — or if you’re skeptical about AI and its role in the insurance industry — consider the following four benefits it can provide to companies and consumers.
Everybody has experienced the frustration of an automated phone system that acts as the gatekeeper between you and a human representative. These systems often cannot detect callers’ needs, but modern AI is changing this, with advanced technology seeing users’ needs more accurately than ever. AI can apply this technology on phone calls, online chats, and various other platforms. It reduces client frustration, makes processing more efficient, and minimizes the need for human intervention during routine customer service functions.
One of the tangible benefits of AI is how it minimizes costs associated with human customer service. Every individual customer service agent paid an hourly, or annual wage ultimately represents an additional expense to an insurance company. A business can outsource more jobs to an AI, who may even offer better services than its human counterpart. With reduced human labor costs, insurance companies can pass the savings to customers.
Yet another essential benefit of AI in insurance is its ability to detect and prevent fraudulent claims. A document from the Federal Bureau of Investigation highlighted that the average family in the U.S. pays anywhere from $400 to $700 annually in premium increases caused by the costs of fraud. Companies can train AI programs to detect the red flags associated with a fraudulent claim. Likewise, it does this to help minimize the expenses, and fraudsters don’t receive the payout they seek. Over time, this may mitigate insurance premiums for customers.
One of the most significant shifts that have affected the insurance industry in recent years — other than the emergence of AI — is the increased emphasis on self-serve management for coverage options and claim management. AI is giving people more options than ever before. An AI chatbot, for example, can provide your customers on-demand access to important policy documents or updates on the status of a claim.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at 541-209-0700
