These innovations can be applied to automate and simplify manual tasks to improve the customer experience.

Automation will not only save time but also alleviate stress. For insurance companies, the need to deliver a great customer experience is becoming increasingly important. 

According to a 2015 report from McKinsey, “Insurers that offer superior customer service beat their peers in terms of profitability.”

In this article, we will discuss the ways to improve the insurance customer service experience, trends, challenges, and how an AI chatbot can help you improve the entire insurance customer experience.

What Are the Insurance Customer Experience Trends? 

Insurance is an industry that has largely been untouched by technology. The traditional methods of acquiring customers and managing customer satisfaction have remained largely unchanged for many years. 

However, there are now several companies that are looking to change the industry and give customers a more personalized experience. 

Let’s take a look at some of the latest Insurance customer experience trends. 

1. Omnichannel Insurance Customer Experience
2. Risk Management Services
3. Updated Insurance Models
4. Lifestyle Apps

1. Omnichannel Insurance Customer Experience

In a report released by The Direct Marketing Association, the convenience of using multiple channels (such as Messenger, WhatsApp, Viber, Telegram, Email,  Website, etc.) to engage with a brand is becoming more popular with consumers. 

Additionally, the report shows that online customer service at an insurance provider is becoming more important than ever.

The report, which surveyed 2,000 Americans, found that 67% of respondents said they expect an insurance company to have an online customer service channel.

Why do you need the omnichannel customer experience for insurance?

• The importance of customer service in the digital age is evident as well. In addition, the report found that 54% of respondents said they’d rather use a mobile app for customer service than a phone call or email.
• Omnichannel customer service has proved to be a successful strategy for various industries in the past. For example, it was previously reported that chatbots are replacing humans in customer service roles at major banks and telecom companies.
• Further, according to a study by Oracle, 71% of customers said they prefer to interact with customer service representatives through a messaging channel.

2. Risk Management Services

These changes will be mainly related to Smartphone applications, which can be used to monitor the location of the insured item through GPS and share various useful information from the insured to insurance companies. 

The mobile application is a very important development for the insurance industry. Besides, there will be some improvements in claims service and automated payment service.

Benefits of risk management in the insurance industry;

1. Helps to see the risks that are not apparent.
2. To the Board of Directors, it demonstrates insights and support.
3. Plays a key role to build a better defense for risks.
4. Decreases business liability. 
5. Helps the company to focus better and structure its inquiry.

3. Updated Insurance Models

The concept of insurance will be updated when it comes to new trends in the Insurance industry. The new Insurance model will focus more on the sharing economy. 

For example, Airbnb users will have some coverage from accidents or losses when they are hosting or participating in Airbnb events. It provides a way to earn some extra income as well as letting them save money on accommodation costs.

4. Lifestyle Apps

Customers now have an easier time interacting with their favorite insurance companies. Insurance companies are looking for innovative ways for customers to interact with them, especially mobile apps. 

1. An innovative way is the use of lifestyle apps that incorporate things like fitness, music, and other lifestyle requirements into the insurance claim experience. 
2. These apps can be more convenient because they allow the customer to enter their policy data on the go while they are at home or on the road, without having to contact their carrier.

Top Insurance Customer Experience Challenges

Most insurance companies have a personable and friendly front-end, but when it comes to the back-end, technology becomes the enemy of customer satisfaction. That’s because it’s never easy to manage policies, account information, and customer data while providing a great customer experience in the insurance industry.

Let’s take a look at how to improve customer experience in insurance; 

1. Understanding the Customer Better
2. Developing an omnichannel sales process
3. Building apps and websites
4. Using IoT to improve personalization
5. Customer experience transformation over time

1. Understanding the Customer Better

The Insurance customer lifecycle is very complex because of the amount of data, products, and services that customers interact with on a daily basis. And, Insurance companies need to understand their customers better.

Steps to understanding your customer better; 

1. Identify your customer
2. Create a buyer persona 
3. Seek feedback from your customers
4. Analyze the competitors
5. Craft a customer needs statement

2. Developing an Omnichannel Sales Process

The Insurance sales process is traditionally built around a series of interactions with agents and brokers. Insurers want to better connect with their customers. But they need to build relationships with them in a way that maximizes the agent’s or broker’s effectiveness in engaging customers over the phone and online. 

To do so, an Insurance company needs to have a comprehensive understanding of all channels through which customers interact with them.   Developing omnichannel sales can bring a lot of benefits to your business. 

• It has a proven success record –  it has delivered impressive results through its strategic approach to customer segmentation and multi-channel strategy. Some brands, for example, Dior, Gucci, Givenchy, Jimmy Choo, and more, experienced astonishing results by implementing an omnichannel sales process.
• The power of omnichannel sales is undeniable – data from First Insight shows that shoppers who experience omnichannel retailing are nearly twice as likely to make a purchase.

3. Building Apps and Websites

Most people don’t think much about insurance unless they have a claim. They may write a check, fill out a form, or, if they’re lucky, have an in-person interaction with a customer service representative (CSR). 

But very few of these interactions are truly differentiated from all the others. Part of the challenge is that insurance policies and products are regulated. The other is that there’s a high cost for implementing new technology into the customer experience in the insurance industry.

The standard business paradigm for customer experience in insurance has been to build your own applications and websites to manage customers’ policies and claims.

4. Using IoT to Improve Personalization

Insurance is a highly regulated industry, with government agencies setting and enforcing rules on companies, premiums, and customers. They require policies to be purchased online as well as a paperless and hassle-free renewal process. Insurers are using IoT technologies to improve personalization and collect data.

Gaye Cook, CEO of Cook CSR, says this means that too many insurance companies end up building their own apps and websites. She recalls one insurer she worked with that had over 50 apps. “It’s a nightmare,” she says. IoT is an opportunity to solve this customer engagement problem by improving personalization. 

• Improve customer service – it helps to gather and store a huge volume of data. With IoT, it is now possible to analyze a massive volume of customer data to provide personalized customer services and product recommendations. 
• Improve customer engagement – With IoT, now businesses are able to gather real-time customer data that they can use the engage the customer with the business proactively. 

5. Customer Experience Transformation Over Time

What has happened in the last year? From a crisis management perspective, the only way to address these issues head-on is to understand them. And, find ways to inform your customers that you’ve heard them and are actively working to improve the experience.

Most of the time, the insurance industry’s customer experience challenges can be traced to legacy systems and processes. There is a gap between what the insurer wants to offer and the reality of what they actually deliver. 

In addition, their relevance drops dramatically as millennials are less likely to be attracted to their products.

Ways to adapt CX transformation over time;

• Understand and empathize 
• Educate and align 
• Identify and innovate 
• Test and pilot 
• Validate and scale 

How to Improve Customer Experience in Insurance?

The insurance industry has changed dramatically in recent years, and it’s now more competitive than ever. In order to stand out in the market and inspire new customers, it’s essential to seize every opportunity to deliver a brilliant customer experience in the insurance industry. 

By getting smarter about how you collect insights and measure performance across all your channels. You can build upon your strengths and drive measurable improvements in your business. And, it will help you to solve the insurance customer experience difficulties.

How to do that? Here are the effective ways; 

1. Simplify the Experience
2. Personalize the Experience
3. Be Where Your Customers Are
4. Efficiency and Transparency in Claims
5. Invest in Your Employee Experience

1. Simplify the Experience

As a customer of today’s businesses, you’re used to a seamless user experience. Your insurance company should be no different.

The customer experience in insurance is not a simple one. We do everything in our power to make it easy and enjoyable so you can focus on your family and business.

Key benefits of simplifying customer service experience; 

1. It can reduce costs through inbound marketing, virtual assistants, and personalization. 
2. Simplifying the process makes it easier to acquire insurance in a way that makes sense, cuts out the confusion, and enhances customer experiences. 

2. Personalize the Experience

The Insurance customer experience depends on a lot of factors, including the right product, features, and coverage. But the key is the way it’s delivered. We studied over 1,000 insurance companies across 15 countries to learn how and when insurers personalize the customer experience.

Let’s take a look at why personalizing the experience is important?

• Customers are more likely to buy a product when they are approached with a personalized message at the exact right moment in time. Chatbots in banking help do the same and the insurance sector can also use bots for personalization. 
• 80% of customer wants to buy from a company that delivers a tailored experience. These customer experience metrics for insurance clearly demonstrated the importance of improvement to provide the best experience for customers.

3. Be Where Your Customers Are

Customer experience management is no longer a sub-set of business strategy, but rather a key component of it. In order to provide the best possible customer experience at all times, insurance businesses need to follow customers across all channels, from social media to in-branch to phone.

Omnichannel customer support tools offer insurance businesses the ability to manage multiple channels from a single unified interface. Thus, allowing them to minimize the negative impact of one-off experiences across channels.

The benefits of omnichannel customer support tools are:

• All channels are integrated into one system and provide customers with a seamless experience.
• Your entire team is able to work together, regardless of their expertise or location.
• Agents can provide customers with a more personalized and consistent experience.
• Customers will be able to access your brand 24 hours a day, 365 days a year.

4. Efficiency and Transparency in Claims

Insurance companies should continuously monitor their policies and premiums to provide complete transparency in every claim. This can prevent unnecessary delays in claims, which ultimately help improve customer experience in insurance. To achieve this goal, it’s important to deploy an insurance chatbot and elevate the customer experience. 

1. By adding transparency to the insurance claims process, customers are more informed and therefore more empowered to settle their claims quickly. 
2. It increases the efficiency of the insurance industry by reducing the amount of claims expenses insurance companies spend on customer service, which allows them to pass savings on to their policyholders.

5. Invest in your Employee Experience

Find out how creating a positive employee experience leads to increased employee engagement and happiness, which results in an overall increase in revenue and profitability.

But have you invested in making sure that your employees are happy? Employees, more than anything else, make up your customer service experience. 

They interact with your customers on a daily basis, and their attitudes and actions affect how your customers experience your brand.

• Spend time and money ensuring that their experience with your company is positive.
• Investing in employees will result in less employee turnover. 
• Happy employees are 20% more productive than unhappy ones. So it is important to make your employees happy to get the best output from them. 

How REVE Chat Can Help You to Improve Insurance Customer Experience? 

A study by Interactive Intelligence found that 74 percent of consumers prefer to use an automated system for solving customer service issues.

Customer experience is one of the top factors for every insurance company. And it’s not just about a shiny website or an app that’s easy to use. Today’s customers want genuine and fast interactions with their insurance companies. Insurance companies, in general, are still a long way from achieving this goal.

An AI-powered chatbot can help by covering the work of many employees and freeing them to focus on more impactful work.

Chatbot captures customer data, assesses risk, and helps agents prioritize their workflow. As a result, customers get their questions answered quickly through multiple channels, and best of all, agents are more productive and happy at work.                                    

Sign up now to provide the best Insurance customer experience. No credit card is required. Enjoy 14 days free trial. 

The insurance sector is embracing new technologies to address some of its major customer pain points.

Leveraging artificial intelligence (AI) in insurance, NLP technology, Machine Learning (ML) helps to tackle customer experience in health insurance and combat insurance fraud.

Indeed, 87% of surveyed insurers are already seeing their companies invest $5 million or more in AI technology each year.

Furthermore, corporate interest in insurance startups has led to some impressive fundraising.

We provide an overview of artificial intelligence (AI) in insurance, covering key use cases and benefits.

What Does AI in Insurance Mean?

Insurance AI means effectively implementing the advanced technology once the insurers figure out where it fits into the digital insurance continuum. However, AI can be leveraged for insurance advice, underwriting claims processing, fraud prevention, risk management, and direct marketing. 

Customer behavior and advances in technology have opened the door for AI in the insurance market to create value, reduce costs, increase efficiency and achieve higher customer satisfaction and trust. 

Key Benefits of AI in the Insurance Industry

The benefits of implementing AI in insurance seem clear to stakeholders in this ecosystem. Indeed, 84% of surveyed French investors believe AI will revolutionize the insurance sector. Moreover, 66% of insurers feel AI can help improve workforce productivity.

• By implementing AI into their processes, insurers can save time, reduce costs, improve customer experience and increase profitability. 
• AI can also transform typically tedious and time-consuming processes i.e. underwriting, claims management, fraud detection, customer service.
• With AI insurers can also reduce human errors. These errors can be common due to factors like changing the regulation of information to analyze for fraud prevention.

Conversational AI in Different Types of Insurance Policies 

Conversational AI abilities allow it to understand the context of an entire conversation and adapt the response accordingly. The highly intelligent and personalized approach increases the customer’s confidence in the overall service, while improving the customer experience in the insurance industry.

Insurers can rely on AI chatbots to deploy on insurance processes by taking on the always-on customer service channel. Conversational AI enabled virtual agents can familiarize customers with various insurance policies and rank them based on customer needs. 

Intelligent bots can ask the right questions and understand the customer’s needs and expectations. With Natural Language Understanding (NLP), it is easy to figure out the customer’s real intent based on their responses. Bots can also recommend the best policies based on the customer’s profile, risk assessment, and the type of cover needed.

Insurance AI solutions can be applicable across different type of insurance policies:

#1. AI in the Health Insurance Industry

Artificial intelligence is poised to become a transformational force in healthcare. AI health insurance offers some advantages over traditional analytics and clinical decision-making techniques.  

AI in health insurance increases the ability for healthcare professionals to better understand the day-to-day patterns and needs of the people they care for, and with that understanding, they can provide better feedback, guidance, and support for staying healthy. 

Many companies deploy AI in healthcare insurance. 

Alayacare is a perfect case to the point for AI insurance Canada.

It offers a cloud-based software platform for home healthcare practitioners. The platform features clinical documentation, back-office functionality, remote patient monitoring, & telehealth. It also helps in analyzing wearable devices to fetch patient data for processing through machine learning technology by giving real-time insights for the care professionals.

Key AI Use Cases in Health Insurance

• Faster Disease Detection: AI in healthcare insurance detects issues and notify care teams quickly, enabling providers to discuss options, provide faster treatment decisions and ultimately save lives.
• More Accuracy in Diagnosis: AI and ML in health insurance help in assisting pathologists in making more accurate diagnoses and developing methods of individualized treatment.
• AI is a Great Symptom Checker: Deploying a healthcare chatbot will listen to the patient’s symptoms and health concerns, then guide the patient to the correct care based on its diagnosis. 

#2. AI for Automobile Industry

The automotive industry is at the cusp of a phenomenal transformation. Automakers worldwide have started incorporating advanced technologies in their products and operations to ensure that they stay a step ahead of competitors in the market.

AI for motor insurance companies witnessed working its magic in an autonomous car using machine learning and also automating motor insurance underwriting with AI.

Here is an example of the largest general insurance company in Australia, IAG deploys AI to assess vehicle damage and reduce claim times.

The company uses an AI-based system to assess damage from motor vehicle accidents and speed up customers’ insurance claims. The support team can predict whether a car is a total loss following an accident, and by mitigating the need to tow the vehicle to a garage for assessment, can reduce claims processing times from weeks to days.

Key Use Cases for AI Auto Insurance 

• Predictive Analytics for Manufacturing: The use of AI in vehicle manufacturing helps automakers reduce manufacturing costs and provides a safer and more efficient factory floor. It also helps in predicting malfunctions in automotive parts
• Vehicle Maintenance Recommendations: AI and ML algorithms for motor insurance companies help in providing recommendations to drivers about vehicle maintenance. 
• Driver Behavior Analytics: AI auto insurance based automotive applications offer a plethora of valuable in-car analytics. Cameras and IR sensors can detect the driver’s behavior accurately and provide warning signals to avoid accidents. 

#3. AI for Property Insurance Sector

AI-based technology is being applied to many different industries now, including the insurance industry, with residential and commercial property insurance. It has the potential to transform how property insurance works. 

Artificial Intelligence helps to improve the claims process, making it faster and more accurate than ever before. Its ability to automate many tasks is making everything more efficient, which translates to better customer service and outcomes.

Key Use Cases: AI for Property Insurance Companies

• Risk Analysis & Underwriting: Using AI to analyze data can result in a more accurate assessment of potential perils, a determination of the best policy and coverage for your needs, and ways to reduce your risk of future claims. 
• Fraud Detection: AI chatbots help to automate many processes that are often subject to fraud and take action without needing human support. It can also flag new policies, helping to identify people who are more likely to commit insurance fraud. 
• Automated Claims Processing: AI can help customers report a claim, record damage or loss, verify policy and limits, communicate with customers, and alert customers and insurers about the status of claims. 

#4. AI for Life Insurance Claims

The technology world is transforming rapidly, which is why the insurance sector is shifting with it, driven by customer expectations. To be competitive, insurance companies require more customer insights and the capability to turn these insights into action. 

AI in life insurance offers the chance to increase revenue, improve efficiency, and reduce risk. AI has the ability to improve mortality, optimize decision-making to help build long lasting profitable customer relationships. 

Utilizing AI in life insurance underwriting can be determined along with individualized pricing, disease severity prediction, submission prioritization, and rapid product development. 

Life Insurance AI Help Insurers in Following Ways

• Marketing & Sales: A life insurance AI solution can help with customer segmentation, opportunity targeting, qualification of prospects, product recommendation, and personalization.
• Real time Engagement: Non-renewal costs insurers money, and AI can predict the likelihood of churn. Such predictions can be used to determine the appropriate renewal price change (RPC).
• Mortality Reserving: AI for life insurance claims can help you determine individual mortality reserving, as well as individual persistence estimating and overall profitability and cash flow. 

#5. AI for Customer Communications

Insurers consider the changing customer needs and expectations, especially as they no longer tolerate lengthy insurance applications or a convoluted claims process. Integrating AI and automation into the customer communication model for insurance companies is critical.

With conversational AI enabling growth and disruption, insurers can address the demand for dynamic products and capture a new customer base comprising younger demographics.

AI in customer communications in the insurance industry has done a lot to improve customer experiences and operational efficiency. 

Here is how AI in customer communications deliver a transformative experience:

• Increased Efficiency of Claim Process: AI helps to reshape the claims process for new and existing policy holders. Voice AI can help handle high call volumes by reducing the load on human agents. McKinsey predicts claims processing will remain the primary function of all insurers in 2030 & AI technology will reduce the overhead associated with claims by 70 to 90%.
• Policy Management: Automating the common customer requests like getting help with documents with AI enabled chatbot will deliver a better customer experience.
• Generating Quotes: Usually consumers have questions after receiving a quote. Voice AI can help consumers with these requests, thus insurers can save agents time until a complex query arises.

#6. AI for Commercial Insurance

Artificial Intelligence has the ability that allows programmers to create software that can identify patterns, extrapolate predictions and manage information more quickly and efficiently.

AI can easily spot patterns and flag risks in commercial insurance. Both new and established insurance companies are embracing artificial intelligence for these abilities.

Here is how AI in Commercial Insurance is Vital

• Better Data-Driven Decision-Making: AI in the commercial insurance industry, makes it easier to manage the massive quantities of data generated by both insurers and their customers.
• Faster Process: The AI algorithms control the amount of time committed to underwriting tasks decreases significantly. All the data is easily processed, and it takes less time than the traditional processes. 
• Risk Evaluation: Applying AI to underwriting questions can be done by providing a more accurate view of underlying risk by accounting for factors that may not otherwise reach an underwriter’s attention. 

Top 7 Use Cases of AI in Insurance Industry

Investments in artificial intelligence clearly payoff as McKinsey estimates that across functions and use cases AI investments can drive up to a whopping $1.1 trillion in potential annual value for the insurance industry.  

So, what are those billion dollars deep pockets of value for insurance companies? 

We have summarized some viable use cases where AI is impacting the insurance industry.

1. Deliver Efficient Customer Support
2. Claim Fraud Detection and Prevention
3. Insurance Pricing and Underwriting
4. Accelerated Claims Processing 
5. Claims Reserve Optimization
6. Personalized Recommendations
7. Prediction of Customer Churn

Let’s dive in. 

1. Deliver Efficient Customer Support

More and more insurance companies are investing in chatbots as an integral part of their customer service to improve response time and save operational costs. 

As customer service bots resolve simple queries quickly, your team saves time to handle complex queries and improve team productivity.

By transforming customer service interactions, AI-powered digital solutions are prepared to improve every aspect of your business including online customer experience, loyalty, brand reputation, and generation of revenue streams.

From gathering data to speech recognition and message response times, AI can enhance the customer experience in nearly every way when it’s applied correctly. 

AI enables 24X7, always on, multi-channel customer service by deploying virtual agents (chatbots) and personalized interactive videos.

Here is how insurance in AI helps in delivering excellent customer service:

• Resolve Frequently Asked Questions (FAQs): AI chatbots can be deployed to address common FAQs raised by users. By solving over 50% of recurring questions from the outset, you can reduce support tickets, deliver efficient service, and save business costs.
• Learning Customer Behavior Patterns: AI in insurance can be used to learn patterns of customer behavior and forecast later. The patterns can be used intelligently to offer the most likely service options or information based on the time and date of previous activities. 
• Faster Response Times: Leveraging AI in insurance helps to speed up the response time of customer support agents. It helps to identify the customer needs and display the right information to the agents, thus bringing best-in-class customer service. Chatbots for banking do this task effortlessly and the same can be easily replicated in the insurance industry as well. 
• Utilizing Natural Language Understanding: NLU helps in real-time analysis of customer service calls, chats, and emails, to understand the conversations better. AI allows reps to understand the customer’s issues and deliver quicker resolution.

2. Claim Fraud Detection and Prevention

Artificial intelligence (AI) plays a key role in insurance scam detection by detecting false claims. As a result, insurers can achieve an efficient and effective claims management system. 

Insurance AI algorithms can analyze huge amounts of data rapidly to find patterns and spot anomalies that don’t fit the patterns.

From intelligent chatbots that offer 24×7 customer service to the range of machine learning technologies that bolster processes through automation, AI is already being used in many ways. 

With increased awareness and resources about the game-changing influence of AI in the insurance industry, the initial hesitation and discomfort around its implementation are now minimal as there is more emerging evidence of the benefits that AI can deliver.  

AI based insurance not only automates the scheduling of executive-level tasks but also enriches service quality by helping agents make the right decisions and irrefutable judgments. 

Here is a look at some ways in which AI in insurance is making a difference in fraudulent claim detection and prevention:

• Big fraud schemes: Deployment of AI for insurance, internal and external databases contain data points that can be thoroughly cross-referenced and analyzed. It is a great way to simplify insurance fraud detection. 
• Fraud Patterns: Using AI in insurance for fraud detection would become much more convenient. 

For example, if a person claims that his smart phone is stolen, a search-run through databases can be conducted to look for any previous suspicious activity. If any is detected, a red flag can be raised so that an expert can dedicate more time to this claim.

3. Insurance Pricing and Underwriting

Underwriting is an essential part of the insurance through which insurers assess risk and determine premiums to accept it. 

Evaluating and pricing risk requires extensive research on the risk profile of the customer. Consequently, manual underwriting is time-consuming, prone to errors, and can lead to inefficient pricing. It is why AI is the right fit for underwriting and risk pricing processes.

AI in insurance increases both efficiency and accuracy of the risk pricing process, creating competitive advantages for insurers that use the technology.

56% of insurance executives believe that AI would improve operational efficiency.

From deep learning to RPA and chatbots, applications of artificial intelligence enable insurance companies to conduct processes faster and more profitably.

Here are the key ways AI in insurance improves underwriting?

• Efficient Application Processing: Insurance AI helps Underwriters can automate data collection, data extraction, filling forms, or other repetitive tasks.
• Better Risk Assessment: Using AI and ML models in insurance and other analytical techniques, underwriters can deepen their understanding of the risk associated with customer profiles.
• Deliver Frictionless Customer Experience: With consumers expecting real time service across all digital touchpoints, AI in insurance has the ability to drastically shorten underwriting workflows.
• Improved Profitability: AI-based automation process improves underwriting profitability, while reducing operational costs, customer churn, and costs for retaining customers. 

4. Accelerated Claims Processing 

In the digital age, customers expect on demand, real-time and efficient submission and processing of claims. 

The insurers now offer new ways of submitting claims, for example through submissions on smartphones or web portals. 

Insurance AI systems now assist customers with the submission of claims, by guiding them through the claims process.  

For e.g., an AI-powered claims bot can review the claim, verify policy details and pass it through a fraud detection algorithm before sending wire instructions to the insurance company to pay for the claim settlement.

How AI in insurance help to streamline claim processing:

• AI-based chatbots can be implemented to improve the current status of claim processes run by multiple employees. 
• Driven by Artificial Intelligence, touchless insurance claim processes can remove excessive human intervention and can report the claim, capture damage, update the system, and communicate with the customer all by itself.
• The document capture technologies and optical character recognition can efficiently capture typed forms from the scanned documents.
• AI in insurance can now read the handwritten text at a level exceeding human capability. 
• Many parts of the claims process are also being successfully automated, from claims routing to approvals. 

It is how insurance companies make use of AI and such an effortless process will have clients filing their claims hassle free.

5. Claims Reserve Optimization

Undoubtedly, insurance companies need to take a deep dive and embrace digital and AI technologies to survive in today’s digital era.

Some of the top challenges in claims management are faced by insurers and the need to optimize their claims operations are the inefficiencies in the claims registration  process. The process is data-intensive and repetitive, leading to operational inefficiencies. 

How AI based Insurance solutions help in claim reserve optimization

• Handling Claims Estimation in Real Time: Using ML and AI in insurance saves a significant amount of time that is usually lost in preparing the data for analyzing claims. 
• Early Detection of Fraud: Detects insurance fraud using AI technologies and helps eliminate the manual effort and intensive claim processes activities which result in delayed claims.
• Inspect Hazardous Locations: Leveraging AI in insurance helps to gauge damages, claims inspectors may potentially be exposed to safety risks, and false compensation claims. 

Companies are embracing AI based insurance solutions to go the extra mile to stand out in the competitive market. The goal for all insurers is to improve revenue and reduce cost. They need to adopt innovative technologies and embrace the new ways of performing business.

6. Personalized Recommendations

Customers have different needs, preferences and lifestyles. They expect personalized policies, loyalty programs and recommendations, based on their individual preferences and attributes.

Engaged and satisfied customers are 80% more likely to renew their current policy.

Insurers are starting to provide tools that offer personalized insurance plans, based on Machine Learning and Artificial Intelligence models trained on individual customer preferences. 

By deploying insurance chatbots, virtual assistants, you provide machine-generated insurance advice, to ensure that customers have adequate cover and deliver an excellent experience.

Voice bots can engage with customers and promote personalized offers. It will ensure that the customers are retained on the platform and not acquired by the competitors. They also share personalized recommendations and upsell other policies.

7. Prediction of Customer Churn

It is quite evident that the acquisition cost of new customers is substantially higher in the insurance industry than in many other sectors. It is much less expensive to keep an existing customer than to acquire a new one.

Insurance companies are utilizing AI based solutions for churn prediction to predict when customers may churn, enabling them to take proactive measures to keep their clients. 

With the help of AI and Machine Learning algorithms, the leading indicators can be identified, such as changes in utilization of apps and rewards programs, a change of frequency of interacting with customer support, changes in income or changes in life circumstances.

The algorithms can also predict attrition in employees, by monitoring changes in work habits and employee satisfaction.

Thus, it is a win-win formula for both insurance companies and customers.

Best Digital Platform for Insurance AI

There are so many AI platforms for insurance companies available in the market backed with AI enabled insurance tools that will help insurers in smooth handling of tasks and delivering great customer experience.

REVE Chat is an acclaimed AI insurance software that offers the best digital platform with advanced tools for delivering excellent solutions for insurance. REVE Chat offers templates and a customized platform to build AI based insurance chatbots and deploy as per your use case.

Sign up with REVE Chat and explore the digital AI insurance platform, and how the tools help deliver excellent solutions.

Conclusion

AI is poised to disrupt the insurance industry like never before for both insurers and their customers. Customers may enjoy a more seamless user experience and more affordable rates.

Insurance companies might save money by making their processes more efficient or offering AI car insurance policies. With AI, the possibilities are boundless, and it is only a matter of time before we start seeing these improvements.

AI is a catalyst for transformation in the insurance industry. Some insurance companies are already using AI technologies to make more accurate predictions about risks; this allows them to set policies at a safer level. 

Above it is described how automation and data analytics are being used to improve risk assessment, pricing, insurance underwriting processes, and customer engagement strategies for more accurate future predictions – all while reducing costs.