4 Ways AI Can Benefit Insurance Companies

This is part of the list supported by AgentSync.

Advances in technology have breathed new life into the slow, inefficient processes common in the insurance industry. While the proliferation of AI-driven systems has some employees worried about job security, there are many reasons why the human touch remains a key factor in insurance.

Automation is growing in all industries

We have all heard before that soon robots will rule the world. Believe it or not, the truth is that no company is safe from machines. It is estimated that AI will replace 85 million jobs worldwide by 2025. While this is good news for consumers who will no doubt celebrate the increased power it brings to their daily lives, what does it mean for those whose jobs are at risk? ?

What if the question on workers’ minds wasn’t, “How soon will robots take over our jobs?” but rather, “How can we work with robots to help our customers?” In this way, the discussion around AI should not end in us versus them.

People should not be changed by technology, but empowered by it; in consumer-oriented industries like insurance, the personal touch is very important.

The development of AI in the insurance industry

You might be thinking, AI in the insurance industry‚Ķreally? Indeed, historically the industry has not been known for its technical excellence, but as Bob Dylan once sang, the times are a-changin’. As it stands, 21 percent of insurance companies say they are preparing their employees to use AI systems. AI has revolutionized the insurance industry, which was once known to be filled with time-consuming and inefficient manual processes.

Automation has proven to be effective in helping insurance companies grow, save money, reduce fraud, and increase efficiency. However, relying too much on technology and removing the human touch from insurance can be harmful.

The truth is, only a person can understand how much a customer wants and feels about each sale. There are several sectors of the insurance industry that benefit from human/machine collaboration.

4 areas of the insurance industry that benefit from AI, but still require the human touch

1. Fraud

Technology is already helping us stop insurance fraud before it becomes a big issue. AI-powered fraud detection systems can memorize and alert users to suspicious activity. For insurers that work with sensitive data, an additional level of security can help build trust with customers.

However, while AI-powered systems can alert users to scams, they do not catch fraud. This responsibility is still in the hands of the people. In the case of suspected fraud, people should still do what they know to prevent the fraud from happening and determine if the transaction is fraudulent. Then the people running the system can feed information about fraud attempts back into the AI-powered system to improve its accuracy the next time it happens.

2. Claims processing

Claims processing is a time-consuming, expensive process that is often still done manually. Not only does this waste staff time but it can also lead to human error and additional costs. For these reasons, insurers can and should encourage the use of their technology to respond quickly and accurately, and at lower costs to the company.

In an increasingly fast-paced world, the personal touch the customer wants most can act as a differentiator. The customer experience throughout the process is critical to the retention and growth of the insurance company.

While AI-powered technology should be used to relieve insurance agents of time-consuming tasks, it should not replace humans in claims processing. Instead, technology should give professionals the tools they need to speed up decision-making, giving them more time to build customer relationships.

3. The producer is rising

The insurance industry is currently facing a talent crisis, which makes it difficult for companies to find and retain good producers. As hiring becomes increasingly competitive, organizations with outdated ways of working are at risk of losing talent to competitors who can provide better experience.

If your onboarding process is filled with outdated data, disconnected processes, and tracking errors, then it’s time to make a change. AI can be a powerful tool in management, especially when it comes to new workflows, IT implementation, and education.

While technology can help attract new developers and sell them faster, it should not replace a real human welcome to the company. When it comes down to it, HR is all about people. Removing the human element from a promotion process is not a good way to show new employees how much you enjoy having them on your team.

4. Customer communication

At the start of the Covid-19 pandemic, companies in all industries were given a grace period as they learned to adapt to non-contact, digital ways of working. Almost three years in and many customers now expect businesses to provide digital alternatives or enhancements to their products.

Today, customers communicate via email, video, contact forms, and even text messages. AI chat boxes are an easy way to get quick answers. Internet communication makes it easy to send and receive information anytime and anywhere.

There’s no denying that AI has revolutionized the customer experience, but there’s one big area where it falls short: human interaction. Insurance customers still want and need the guidance of independent professionals. No two clients are the same and it takes a real person to understand the unique needs of each individual.

Creating a collaborative environment between humans and machines

Insurance companies are in a unique position. Insurance professionals have the opportunity to combine the best technology with the best people to provide fast and accurate service to their customers.

Just as refusing to adopt technology can limit the size of organizations, so too will it remove people from the equation. Only companies that find effective ways to use technology to their advantage will be able to provide effective and personalized service to their customers.

If you’re ready to see how AgentSync can help your team with efficiency and accuracy, schedule a demo today and show them what it looks like.

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InsurTech Market Data Managed

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