The insurance industry has data at its centre. Data is gathered in large amounts on a daily basis. In addition, this process happens at a tremendous speed. AI and machine learning are transforming the industry. Human-like machines are thus being built.
According to surveys, humans do not, however, mind interacting with a bot. Consumers are satisfied to get computer-generated insurance advice.
Tata Consultancy Services has invested $124 million in AI. Other industries invested on average $70 million.
Many claims, customer queries and huge amounts of data resulting in the insurance industry being a natural use case for AI.
* Claims are handled rapidly;
* AI identifies patterns in data and can, therefore, find fraudulent claims;
* The collection of this data helps with risk evaluation;
* Powered chatbots replace human assistants. This results in fast and efficient customer service;
* Chatbots are able to obtain customers’ geographic and social data. This increases personalised interactions;
* Wearable sensors will lower premiums for less risky behaviour. This includes driving and exercising.
Claims can be forwarded through a mobile app, photos taken of the accident and the claim submitted instantly. Trained algorithms via pictures from past claims can estimate the cost of damage.
Siri, Alexa and Google have become part of our daily lives. Through voice recognition, tones and emotions can thus give clues regarding customer service and fraud detection.
In addition, by means of past pattern analysis and actions, AI can recommend suitable action to management on how to retain a customer. Furthermore, additional recommendations can be made in which additional insurance products to sell to the client.
A Gartner report furthermore predicts that by 2020, 85% of interactions with customers will occur without human involvement. In addition, the savings by using bots instead of humans would be passed onto the consumers by means of cheaper premiums.
Tornadoes in Mississippi:
Insurers have paid more than $31.6 million on 2,801 claims from tornadoes that hit Mississippi during January 2017.
The Mississippi Insurance department expect insured damages to reach the $100 million mark, with $50 million in uninsured losses.
A powerful tornado tore a 31 mile path across Mississippi killing four people and destroying more than 1200 homes. The most damage was in the towns of Hattieburg and Petal. At least 20 deaths were reported.
The Federal Emergency Management Agency (FEMA) said more than $51.7 million had already been approved.
The Mississippi Insurance Commission asked the insurance industry to expedite payments for living expenses for affected individuals.
More than 1,200 homes were damaged in eight total counties. 549 were destroyed or sustained major damage as a result of these tornadoes.
4 insurance companies including Allstate and the Hartford set up a help centre at Petal to assist storm victims. The units issued living/emergency expense payments to those people who were displaced.
It is estimated that insured damages would be about $100 million and uninsured losses more than $50 million.
Georgia was affected by storms, including tornadoes on January 21 and 22. Fifteen deaths were reported. The storms caused $100 million in damage.
The Georgia Department of Insurance urged the insurance industry to respond as quickly as possible to the affected individuals.
“Individuals in these areas have suffered devastating losses and should receive special consideration with regards to their insurance claims,” Hudgens said. “I have notified the larger insurers and expect them to first and foremost take care of the immediate needs of their policyholders. This includes providing direct emergency funds for basic necessities such as food and shelter.”
Mr. Hudgen of the Department also asked the insurance industry to exercise leniency in dealing with affected individuals. He referred to individuals whose premiums may appear tardy. This may be due to disruption of services such as mail, telecommunication as well as loss of property.