Is AI the Future of the Insurance Industry?

 

        Hello, in this week’s post we will cover the future of the insurance industry and how artificial intelligence (AI) ties into that. All of whom own a vehicle and house must purchase an insurance policy. It is essential to survive when accidents or trauma occur. It is meant to provide safety assurance for personal or professional needs. However, what we do not realize is that these companies who we rely on are determining their policies, and products on outdated, incorrect data. Long-term effects could result in enormous amounts of money spent and damage to the consumer. This article details that the insurance companies which collect data points are still relying on demographic information over 40 years old. It is 2021 and as a consumer, this needs to be rectified to more relevant to modern time. With integration, of further AI, it can process over 4,000 data points within minutes, and want to know something even better? It can also process mortality, demographic, health, and government trends dating back 20 years! This results in excellent algorithm creation which means better more effective decision making. Tools that improve this process are Data Science-as-a-Service (DSaaS) and Insurance-as-a-Platform (IaaP). The benefits of these platforms include reducing risk more accurately, reducing cost, creating products that are more tailored to the clients, and improved customer relations. Going further, this can also predict future understandings of consumers who are ready to buy and establishing the correct risk on their policies. Result—more profit. These data streams policies become more adjusted to the consumer’s needs whether they are a new or existing client. In the past, new products were created based on existing ones which meant they did not fully analyze what was more effective and where true adjustments are needed. Now, with AI and DSaaS, these platforms are allowing carriers to produce better products based on demographic and risk data. With the help of the human factor (industry leaders), they can assist by deploying agents to monitor and design products to truly meet the policyholder’s needs. Although these technological advances can be an enormous jump for a company, it is still vital to have human agents. Agents are crucial in developing trust with the clients and being the gateway between big data and personal connections. Consumers still want to know there are individuals with a pulse that care and are knowledgeable when they need help.

Source:https://insidebigdata.com/2021/05/25/is-ai-the-future-of-the-insurance-industry/