Artificial Intelligence Can Transform Your P&C Insurance Operations

BY: RAJESH NAMBIAR – FOUNDER, CEO
FEBRUARY 8, 2022

From deep analytics to chatbots, AI provides unparalleled business benefits

Key Takeaways

  • Insurers today need the insights AI can provide
  • Intelligent automation is the first step to streamline operations and process the huge amounts of data necessary in the insurance business
  • Underwriting and risk assessment are aided by data processed by AI, which can detect fraudulent information and allow underwriters to build predictive models
  • Touchless claims processing can be implemented through AI bots, enhancing customer satisfaction while also providing fraud detection alerts for adjusters
  • AI can provide the details needed for personalization in customer service today through the use of bots, speech analytics, and natural language processing

Artificial intelligence (AI) is ubiquitous today in all industries, providing unparalleled insights that bring process automation, cognitive insight, and cognitive engagement, all of which are disrupting as well as improving organizations. In line with this trend, P&C insurance industry executives are increasingly adopting AI platforms to improve workflow and transform underwriting, fraud detection, claims, and customer service.

Among insurers who have invested in AI, about two-thirds of leaders say it improves the customer experience. Almost half say it leads to better decisions overall, spurs innovation, increases operational efficiency, brings cost savings, and reduces risk. Another third credits AI with revenue growth.

Let’s take a look at where insurers can leverage AI to build a strategic, sophisticated environment to elevate the end-to-end quality of their business.

It all begins with Intelligent Automation

Insurance companies are data-driven organizations. They need a way to quickly and effectively process huge amounts of data through a logic-based system that eliminates redundant manual processes and contributes to better decision making.

Intelligent automation is a critical tool for insurers, going beyond just eliminating repetitive tasks to deliver quicker reaction times, reduce operating expenses, and boost productivity. Using robotic process automation combined with AI means insurers can automate business processes from beginning to end and reap incredible benefits.

For example, when you automate a complex process like claims intake, 90% of the resources usually used in the process can be freed up and redeployed for more high-value tasks. Other applications of intelligent automation that improve the entire workflow include:

  • Improving the employee experience by removing repetitive tasks
  • Easier data mining to generate relevant, useable insights much easier
  • Accurate validation and tracking
  • Enhanced customer experiences
AI in Underwriting and Risk Assessment

AI means underwriters can identify risk in a much more granular and sophisticated way, mining piles of digital records for the data they need. Rather than using manual processes and human workers who need days to compile the needed information, AI surfaces key data in minutes, providing the information needed to not only identify the best business to write, but also to formulate accurate pricing that leaves no money on the table.

Processed files with important data can then be used to evaluate the level of coverage and price by employing AI to follow pre-specified underwriting guidelines and policies. Analysis of bank statements, tax returns, medical histories, credit scores, demographic profiles, and more can be done instantly.

P&C risk assessment becomes easy because AI can identify fraudulent information. The technology also can be used to build deep causal models of risk. Underwriters have the ability to review current and past risk levels and the correlating guidelines to build predictive models. The automation provided by AI also allows insurers to deliver quotes to distributors and brokers much more quickly, which in turn accelerates response times for policyholders.

AI in Claims Processing

It all comes back to the pandemic, which forced insurance leaders to accelerate adoption of both digital tools and AI. Traditional claims investigations with in-person visits just weren’t possible.

Insurers began using tools such as photo estimates, virtual inspections, heat maps, and online shop scheduling to facilitate contactless claims. AI is also contributing to faster and more consistent decisions across the claim lifecycle.

A touchless insurance claims process fueled by AI removes most human intervention. Combined with a chatbot, it can report the claim, capture the damage, update the entire system, and interact with the customer, saving time and effort for everyone.

Fraud is reduced as well. A claims chatbot powered by AI can review the claim, verify policy facts, and pass the claim through your fraud detection algorithm before settling it.

Customers have found that they like the flexibility, streamlined operations, and expanded capabilities of AI-powered claims processing. Now they expect that both online claims technology and AI will be available, which means insurers must sit up and take notice.

How AI Improves Customer Experiences

The key to an improved experience for P&C insurance customers can be summed up in one word: personalization. To provide this, insurance leaders must use data and AI to predict and act on customer needs and risks as well as present relevant value-added product offerings.

Some of the AI tools that can be used to improve the customer experience include:

  • Natural language processing, which uses text mining and topic modeling to analyze text fields in surveys and reviews. This uncovers insights that improve customer satisfaction and increase efficiency.
  • Speech analytics use call center recordings to dissect caller emotions, extract information from customer feedback, and then adjust communications.
  • Chatbots can answer customers’ most frequently asked questions, provide an intuitive and immediate response, and deliver information without human intervention. You can also analyze chats to keep improving your bot and overall customer service.

AI tools collect and analyze historical customer data in seconds and provide clients with better solutions based on past interactions. They are able to detect the patterns, trends, and behaviors that allow your business to deliver a more personalized customer experience.

You also can leverage AI to identify customers at risk of churn, predict problems that could lead to churn, and send those customers personalized solutions.

Reduced time and cost is another benefit of implementing AI in customer care – 65% of business leaders report that they have seen revenue increases in areas where AI has been adopted.

Customers expect to be a priority at all stages of the insurance process, and rightfully so. This demands a level of attention that would eat up almost every company resource. By using AI in customer service, insurers can easily meet the needs of their customers.

Adoption of AI should be the focus of insurance executives today as a part of the necessary digital transformation that creates a competitive advantage by improving workflow, underwriting and risk assessment, claims processing, and customer service. Schedule a discovery call to learn how RG Global can help you master intelligent automation to create the great digital experience you need to be successful today and in the future.

"Insurance Technology leader and Software entrepreneur with decades of experience leading technology initiatives for fortune 500 organizations. Rajesh Nambiar founded RD Global to create a unique digital consultancy offering high quality software solutions with an extreme commitment to customer experience."

FEBRUARY 8, 2022
RD Global Empowers Insurance Companies to optimize total digital experience, unify data, and harmonize processes by developing high impact technology solutions infused with a 5-star customer experience.