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.
People can earn cash from their health insurance company. They would wear a fitness tracking device. They would then share data with their health insurance company.
United Healthcare has devised a strategy for clients. People can choose to wear a fitness tracking device under certain coverage plans. They then share their data with the insurance company.
Qualcomm Life analyses the data. This company processes medical data from wireless sensors. Doctors, hospitals and insurance companies can subsequently receive the data. Active participants are able to earn as much as $1500 towards healthcare services each year.
People are very interested in wearing fitness trackers. Those devices will help people increase life expectancy. Health devices will eventually be able to diagnose illnesses. Furthermore fitness data could be used unfortunately to deny coverage or increase rates.
A fitbit tracker could warn a person of the presence of a virus. For example, if the device measures a decrease in the number of steps, plus an elevated resting heart rate.
An insurance company could send a message to the patient if it has access to that data. The patient could be directed to go to a doctor or urgent care clinic. Therefore the patient would be on the mend sooner.
There are clinical trials underway using fitbit data. The trials deal with a number of conditions. These conditions are diabetes, cancer, arthritis and cystic fibrosis.
When these studies are made public, researchers and doctors will thus be able to identify signals of specific diseases. The devices can help individuals change their daily habits to become healthier. Insurance companies would save money. They could therefore pass savings to their clients.
Unfortunately, the devices could also provide reasons for denying coverage to the inactive and unhealthy or increasing insurance premiums.