Successfully integrating AI in insurance purchase and management

What artificial intelligence (AI) empowers us to do is progressing rapidly. As more technological breakthroughs emerge, we’ll see even more dramatic changes in how we do business.

We’ve already seen how beneficial AI in insurance has been for both business operations and the customer experience through its:

• Improved underwriting accuracy and risk assessments – The automated evaluation of risk factors through access to more data via telematics, remote sensors and digital records creates a more streamlined, consistent underwriting process that minimizes human bias and error. Moreover, AI’s ability to analyze data at rapid speeds helps insurers obtain insights in real time on various risk factors and consumer behavior for better risk portfolios.
• Capacity management and cost savings – The reduction of manual and non-value-add tasks such as data entry, simple claims handling and document processing through AI enables customer service representatives to spend more time on client retention and consultations.
• Personalization – AI in insurance enables better customer segmentation and new data sets on customer touchpoints. With a more comprehensive understanding of their target markets, insurers can provide a more tailored experience with individualized coverage and pricing for each customer.

In a world of dynamic consumer behaviors and preferences, AI is a powerful tool that empowers us to spend more time on the consumer, especially as the human touch is a critical component of successful transitions. But as technological capabilities continue to expand, it’s important to strike a balance between automation and humanization.

So, as the industry continues to evolve and develop the future of AI in insurance, there are a few things that should be kept in mind in order to best serve our customers. Understand that customer needs are ever-changing, and a one-size-fits-all approach does not account for the unpredictability of life’s changes.

The current generation of brokers and agents have the background and expertise that is essential for offering proactive guidance for life changes and can improvise when necessary to address individual needs. With the support of AI, insurers can give more specialized counsel for each customer’s unique needs, along with the layer of trust that comes from talking to a human expert.

In order for this to be successful, we must supply the fundamental training necessary for professionals to evolve with the industry and ensure AI’s integration creates value for society. As both AI’s capabilities and the insurance industry continue to evolve, the technology will serve different purposes across functions. For items such as claims management, AI will likely have a significant impact on the assessment, validation and adjudication of claims, but a low involvement in claims litigation and financials. As we continue to incorporate AI into insurance operations, it’s important for insurance professionals to progress with the technology and carefully evaluate where its use can be the most practical.

While some customers are going to adopt new technologies faster than others, it is critical to present customers with options for interaction, including both AI-enabled and human options. By offering options for interacting and meeting customers where they are with their preferences for digital or human experiences, through a tool like VIU by HUB, insurers can adapt to this new age of customer experiences while still reaching a broad audience of customers.

Therefore, while AI will continue to weave its way through insurance processes, seek out an insurance partner that maintains a balance between technological advancements and the irreplaceable value a human can provide.