When John McCarthy initially coined the term ‘Artificial Intelligence’ in 1956 at Dartmouth Conference, nobody thought it would become such a huge success. As the development in the field of AI technology is touching new heights, its scope is advancing in several different sectors. From education and entertainment to healthcare and e-commerce, there is no field left that has not yet discovered its true potential with a little help from intelligent automation.
One sector that deserves special attention from everyone is definitely insurance. So let us see how AI is bridging the gap present between the users and several insurance companies. In this blog we would observe the use of intelligent automation in delivering virtual assistance in the insurance industry.
The advent of intelligent machines is ameliorating the curiosity within millions of people. The role of AI in providing the transformative value to the businesses would upheave the engagement with the clients and deliver customized products. This tech basically allows the machine to complete a chore in a short period of time, which otherwise would take up a lot of human effort.
This technology can be used to create common human intellectual nature in the insurance sector. Now without any further ado, let us observe how the progress has been initiated so far. But first let us get to know a little about AI technology.
What Is AI Technology?
Machine intelligence or artificial intelligence is basically any task performed by the machine/program. If a human did the same task he/she would require to apply intelligence in order to fulfill the task. The systems that are based on this technology would display the following set of human behavior-
- Knowledge representation
This tech falls under two categories, take a look-
Narrow AI- Also known as Weak AI, it operates within a limited context. Narrow AI is the simulation of human intelligence. It focuses on performing a single task with perfection. These intelligent machines operate under limitations and constraints. This tech is present all around us. Narrow AI is one of the most successful use cases of this tech. By focusing on performing specific tasks, this tech has contributed to maintaining the economic vitality with numerous breakthroughs. Google search, Siri, Alexa are some of the most successful examples of Narrow-AI.
Artificial general intelligence- AGI is also known as Strong AI. This is the type that we witness in movies. It is basically a machine with general intelligence and can be used to solve any problematic situation. The development of machines with human intelligence can be used in multiple research work, but the process to achieve the same is difficult.
How Artificial Intelligence Is Helping The Insurance Industry?
One of the most important requirements, right now, is to offer personalized content to a user. Customers often want a process to become an integral part of the user’s life to deliver a customized set of operations. So in order to hit the nail and deliver value to the user base by complete personalization, it is mandatory for the businesses to connect on an emotional level. This technology can be used by the insurance industries to get personally connected with the customers.
The personalized connection can be established by getting up close with the user and gathering useful information. One thing to be kept in mind is that, before gathering the required information, the consent of the customer is necessary.
After gathering the details, the insurance agencies can reach out during the key moments and become part of their journey. These steps are highly effective in boosting the business.
- Risk assessment & underwriting
Risk assessment & underwriting are transforming the insurance sector to a great extend. The world is stepping closer to full-fledged adoption of digitalization. And because of this the growth of data is welcoming a new era of personalization. With the help of the available data, insurance companies can get better insights into the customers and their requirements. For this sector the power to understand individual risk rather than depending on group risk is beyond any comparison.
If these companies with the help of AI can allow more accurate risk assessment, it would be a great help in premium pricing. If the motive is accomplished successfully, the customers with low risks would have to pay fewer premiums as compared to the ones with greater risks.
Human resources are incapable of providing 24*7 services without constant expenditure. But AI is awake all the time. That is why virtual assistants and intelligent chatbots permit insurance companies to be available for the user base at all times.
With the advent of AI-based technology, customers can not remain in touch with the companies 24*7.
These are the three major ways in which intelligent automation is helping the insurance sector. The world of AI has the power to unravel the pandora of possibilities. Soon we would see a wave of developments overpowering the day to day chores of humankind. The future would not only bring us convenience but would also streamline multiple processes.
If you want to establish your business in the industry, then like the insurance sector start integrating the advantages of AI in the process. Success is guaranteed one we start adopting the ways that would streamline multiple operations. If you are interested in knowing more about it, then feel free to let us know. But until then, stay tuned to this space for more updates about everything from business to technology.