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An Insight Into ArtificiaI Intelligence & The Insurance Industry

Artificial Intelligence and the Insurance Industry | David Dhannoo | TDMB BlogThis week our social media specialist David Dhannoo turns his attention to Artificial Intelligence, and looks how this form of technology can be used in the insurance industry.

When you think of the word ‘insurance’, you either tend to nod off or have an image in your head of meerkats with really bad Eastern European accents. To some this might be a dull industry to choose. However, financial technology, aka FinTech (or in this case, to be more precise ‘InsurTech’) is really starting to disrupt an industry that has not evolved for some time now.

Artificial Intelligence and Motoring

Artificial Intelligence is going to be increasingly important in the financial services industries – and insurance companies such as Progressive are offering discounts if you agree to putting a little monitoring system in your car that lets them know whether or not you’re a safe driver.

AI is like a car, the more data that comes into play the more it runs smoothly. Using AI and machine learning in the Insurance industry will record all insurance claims, decision processes and data. Over time, AI can learn to approve or not approve claims all by itself.

Artificial Intelligence, Chatbots and Robo-Advisers

In addition, Chatbots and robo-advisers will become commonplace, as well as receiving information in real-time. For example, if you’re on a skiing holiday in the Swiss Alps and are on a ski slope, geo-location data will trigger an alert, and will message you asking if you would like extra cover. The likes of chatbots and robo-advisors will start using AI to analyse massive data sets, helping to contribute to the advancement of insurance customer care, without the need of using a human employee.

Building up a deep understanding of the client’s needs would therefore allow AI to make the best additional offers, and increase the chances of creating a sale. Also, insurance loyalty schemes would determining the best complementary product to offer from the available client data.

Artificial Intelligence and Disasters

What’s even more interesting, using AI would be able to predict environmental catastrophes, it can help insurance companies in high-risk locations to adjust their policies as well as potentially run from significant expenses in unforeseen circumstances.

Artificial Intelligence and Fraud

From using massive data sets, AI has the potential to prevent expenses on fraudulent claims based on historical data. Also, with a wealth of data available, AI machines could be able to determine the possibility that some insurance cases are staged to receive a claim. This is conducted by comparing a large scale of claims in an available dataset. An algorithm then determines whether a claim is legit, or if it turns out to be fraudulent.

This is just one example of one industry that will utilise this form of technology in the very near future. The key for the insurance industry is having access to a lot of data. The more they can automate, and the more they can rely on AI, the more the industry will change for the better. Who said insurance had to be boring?

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This entry is filed under TDMB Team Tech.