For a long time, the Insurance Industry has been investing in artificial intelligence (AI). In reality, at least on a fundamental level, AI in insurance may be called mature. Chatbots and AI-based analytics are well-known features in the industry. However, the sophistication of AI-based insurance continues to improve with each passing year. The need for AI in the Insurance Industry is obvious. Consider the total number of homes, automobiles, and businesses in a country.
Add in appliances, computers, equipment, and other items that are frequently covered by insurance. The quantity of insured items and objects is enormous. It’s impossible for a team of agents, clerks, appraisers, and adjusters to keep track of everything manually. AI has a number of implications for the Insurance Industry. Claims processing, underwriting, fraud detection, and customer service are just a few of the areas where it is used. However, this is a market where AI spending is expected to skyrocket.
After all, insurers already have a lot of money. They’ve amassed mountains of information about people, houses, and businesses over the years. However, it is frequently locked away in silos and unavailable to those on the front lines. If the data is integrated and available for study, AI can help change that. It can pull together this plethora of unstructured data and use it to improve customer engagement, service personalisation, and the impact of marketing messaging.
A quarter of insurance companies, according to a PwC survey, have adopted AI widely, up from 18% last year. Another 54% have started utilising AI and are planning to scale it up. “Hype or Reality: The State of Artificial Intelligence and Machine Learning in the Insurance Industry,” a previous LexisNexis research revealed that 16 of the top 20 insurance companies were big adopters of AI and machine learning (ML).