The use of AI can significantly transform various aspects of this industry, for example, simplifying the application and underwriting process. AI can analyze large amounts of consumer data, including their behavior, preferences, purchase history, and even activity in social media. This allows insurance companies to offer fully personalized insurance products that best suit the needs of a specific client.
AI analyzes complex data sets to more accurately assess the risks associated with each customer. This includes everything from reviewing medical history to considering lifestyle and behavioral factors. This allows insurance companies to offer fairer and more accurate rates.
The use of chatbots and AI-based virtual assistants for customer service allows automate many processes, including answers to frequently asked questions, collection of primary information for issuing a policy, and even assistance in loss adjustment. This reduces waiting times for customers and increases the efficiency of companies.
Using data and machine learning algorithms, companies can better predict potential risks and prevent claims. For instance, by analyzing health and lifestyle data, AI offers recommendations for improving health, thereby helping to reduce the risk of disease.
AI breaks down behavioral patterns and recognizes suspicious activities, which can be of a great help in identifying and preventing life insurance fraud. This not only protects company resources but also reduces the cost of insurance products for honest customers.
Finally, big data analytics and forecasting by using AI pave the way for innovative insurance products and services, such as real-time insurance or dynamic pricing that can offer more flexible and favorable terms to customers.
Source: https://etinsights.et-edge.com/embracing-ai-innovation-in-the-life-insurance-industry/
Photos are from open sources.
