Artificial intelligence, or AI, is essential for survival in the insurance industry’s present and future. Any mention of AI is often enough to spur a divisive conversation. Likewise, many proponents will advocate fiercely for its advantages, but some critics don’t trust its potential. This debate has reached a point in the insurance sector, where AI seems to take over more daily tasks.
Regardless of which side you’re on, it’s clear that the industry’s profits are often volatile at best, and something needs to change if the industry is going to survive. AI has emerged as the solution to many of the most pressing issues in insurance. The following reasons illustrate why it’s imperative to the industry’s survival and growth.
Insurance has a profit problem. Additionally, global events and economic fluctuations can wreak havoc on the industry’s bottom line, and high operation costs further exacerbate this instability. AI can solve this problem by massively reducing the prices associated with policy management, market research, and other essential tasks. However, while humans used to complete this work, AI has proved it’s just as capable and a fraction of the cost. It means it’s much easier to maintain healthy margins when organizations outsource these tasks to AI.
Programs such as Portal Pro have also improved the insurance sector’s client-facing operations. Likewise, technology like this has come a long way toward similarly helping clients in ways a human could. The process has become more straightforward, and AI is streamlining the experience for clients to make it as beneficial as possible.
AI has also emerged as a potent tool for underwriting policies. Many basic coverages, such as car insurance or home coverage, can quickly be drafted by an AI that’s powered by an algorithm. This algorithm accounts for a client’s various risk factors and writes a policy that meets their needs. In addition to the convenience of this function, it offers lucrative savings for companies that need to minimize labor costs and preserve the time of human underwriters.
It’s, unfortunately, true that fraud drives up the cost of insurance exponentially. False claims, fraudulent documents, and many other risks can result in massive losses for insurance companies. Humans are not always skilled at recognizing the red flags associated with fraud, but AI is. Businesses can train AI to identify the risk factors that most accurately predict fraud and stop false claims before they are processed and paid out. It can save an insurance company countless hours and substantial sums of money — but more importantly, it helps keep coverage affordable for clients.
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.
