In the current digital era, technological advancements have disrupted virtually every industry. The insurance industry is no exception. Major insurers, insurance technology providers, and reinsurance companies are experimenting with artificial intelligence technologies to remain relevant, profitable, and customer-centric. There is no single path leading to the adoption of AI in the insurance industry. There will be adoption, experimentation, and integration stages, as with any disruptive technology. However, the insurance industry is not exempt from AI adoption. Mark Hauser, chief operating officer of Hauser Insurance, discusses the trends driving the AI revolution in the insurance industry.
- Repetitive Task Automation
AI is being used to automate repetitive tasks. This can be seen in the insurance industry as well. For example, insurers are using AI to determine the probability of claims. For decades, insurance companies have been using predictive modeling to identify and manage risk. However, AI allows insurers to predict the frequency and nature of a claim, which is a critical step in managing risk. Insurance companies are also automating manual processes. Mark Hauser recently wrote about using AI to automate the underwriting and claims process. The automation of these processes reduces costs, improves accuracy, and improves customer service.
- InsureTech Improves Claim Filing and Processing
Mark Hauser also wrote about using AI to improve the claim filing and processing process. Insurance companies are using AI to enhance their claims management process. The goal of these programs is to reduce the average time for a claim to be processed by 50%. Currently, insurers can take up to two weeks to complete a claim. With AI, claims can be filed in under two minutes and processed within an hour. Mark Hauser points out that these improvements reduce costs and improve customer service.
Original source to learn more: https://www.markhauser.com/