Consider AI in insurance to be a box that is filled with numerous opportunities. This box when opened by insurers can truly change the game in insurance. Today, there are multiple use cases of AI, that are being developed, and insurers are increasingly tapping into the unexplored areas and making a significant change. However, in this growing fad of leveraging AI to transform processes, there lies one aspect that most insurers are overlooking. This aspect is humanizing experiences in insurance. Leveraging AI to humanize experiences in insurance will not only enhance customer trust in insurers but will also offer the insurers the opportunity to enhance efficiency, accuracy, and speed in reimagining the insurance landscape.
Taking the AI Advantage in Humanizing Insurance
There are multiple avenues that AI has unlocked for insurers to offer a more humanized experience. Here’s a closer look at these avenues where insurers can tap in to offer a humanized experience:
Enhancing Risk Assessment and Premium Calculation
AI is already redefining the underwriting and claims processing ways with its advanced capability. With the help of AI, insurers can better assess and mitigate risks, offer more accurate premiums, and expedite claims settlement for policyholders to deliver a better customer experience. With the advanced AI and ML tools, insurers are maximizing data potential while giving organizations better insight and more bandwidth for focusing on customer experience and serving the policyholders.
AI-driven underwriting and claims processing look much different from how humans conduct risk assessment and premium calculation. AL and ML algorithms cross-referenced vast amounts of data sets in a much faster manner than humans would. This capacity enables the insurers to make connections and draw insights from data that otherwise would not have been possible. This efficiency is helping in offering more humanized experiences and expediting the underwriting and claims processing time.
An AI Way of Enhancing Customer Experience
Just like any other industry, AI in insurance is significantly driving customer experience by tapping into one of the most crucial aspects of the insurance process which is claims management. With AI agents, enhancing customer experience is becoming a breeze for insurers. However, real-life agents can enhance customer experience by exerting their energy in creating a better experience through communication as there are so many tedious or time-consuming tasks within the underwriting and claims processes that are already in the hands of AI.
Personalization takes on a completely different perspective when it is backed by AI expertise. At the macro level, AI-powered tools’ data aggregation and insights help the insurers in creating a more accurate persona and customer profiles that inform business decisions. One of the key areas where AI personalized products are helping insurers is to enhance trust. With AI in personalization, insurers will not just be able to humanize customer experience but also save a lot of operational time and utilize it in making customers feel heard and valued, thereby leading to a more empathy-driven process.
Downplaying in offering customer experience can be a significant deterrent for the scalability of an insurer the number one barrier to purchasing insurance has been linked to poor customer experience.
Where Insurers Need to Tap in to Harness the Capability of AI Completely in Humanizing Experience?
To be prepared for AI impact, insurers should prioritize investing in talent and business workflows to build a more solid foundation for AI integration. With AI, generating more actionable insights for insurers becomes extremely easy and this way insurers will be able to make much better and more informed decisions. This helps the insurers acquire new skills and also determines what data can be brought in and how it can be audited.
In an interesting find by Gartner, 35% of large organizations will have a Chief AI Officer who will be reporting to the CEO and COO by 2025.
This shows the growing necessity of AI-based talent across industries. Insurers need to work hard on monitoring as well as adapting to the evolving regulations and compliance requirements that are related to AI usage.
Embracing an AI-infused Insurance Ecosystem
As the insurance industry braces the emerging AI capabilities, it also amplifies the market’s potential for leveraging emerging technology for operational efficiency, enhancing customer experience, and reimagining personalization.
