Advances in technology will bring you better pricing and faster service

Key takeaways:

  • Artificial intelligence (AI) can mimic human decisions and actions; machine learning (ML) can process data that helps make pricing decisions; Robotic Process Automation can automate manual processes to streamline interactions with your insurance company.
  • Auto claims can be processed faster when they involve no human physical inspections.
  • Property claims will not require human adjusters – your smart devices, including your smartphone, can give your insurer all the information they need.
  • By using AI, ML, and Neuro-linguistic programming (NLP), chatbots can answer simple questions and provide policy information.
  • The use of AI in insurance results in reduced friction and a more streamlined process that improves the customer experience.

The term artificial intelligence, abbreviated as AI, is heard everywhere today. But, what does it really mean? AI is a branch of computer science concentrated on technology that can mimic the way human beings make decisions and perform actions. It’s a term that covers more than one type of technology and includes machine learning (ML) as well as other components.

ML, a subcategory of AI, uses statistics along with mathematical models to find patterns in historical data. ML then uses algorithms (a set of rules) to make predictions. It can help insurers set rates using information about risk factors in different types of coverage, especially automobile policies. 

AI and associated technology are being adopted by more and more insurance companies to set pricing, handle claims, and detect fraud, all with an eye toward efficiency and better customer service. Using data combined with AI, Insurers are better able to customize a policy based on individualized risk profiles and process claims more quickly. At the same time, they can develop products that better suit customers’ wants and needs. Let’s take a look at how these and other technologies will affect you as a consumer.  

AI allows auto insurance claims to be processed faster

Traditionally, claims processing involved a lot of paper and waiting, and was inefficient. Also, humans make mistakes, adding to customer frustration. Using AI, ML, robotic process automation (RPA), and the Internet of Things (IoT), insurance companies become more efficient. RPA is a process automation technology that deploys digital “bots” to perform repetitive business processes to make them more efficient. IoT is a term used to describe physical objects that can connect with other devices and the Internet to exchange data. It includes things like smartwatches and Alexa.  

Another technology being employed by insurance companies is virtualization, which is when a vendor or the customer takes pictures or videos of damage to the vehicle or property. These images are uploaded to the insurer for examination by the adjuster. This vastly speeds up the processing of your claim and your settlement since there’s no wait for an employee to make a physical inspection. Some insurers are using AI and a computer vision system for the same purpose. 

Have a homeowners insurance claim? There’s a drone for that.

Just like auto claims can be facilitated by picture-taking on the ground, drones are being used for property claims, as are satellites. Another unexpected thing being used by insurance companies is the smart technology in your home. It includes things like Google Nest, Alexa, Echo, and Ring devices. These technological amenities can even reduce your premiums with some insurers. 

Insurance companies will often offer subsidies for you to install these devices. Their point of view is that risk is lowered through efficiency and issue detection, thereby minimizing damage. The smart features that insurers are keen on include smoke detectors, water monitors, and alarm systems that are digitally connected. In addition, just like with auto claims, insurers are accepting photos and videos taken with your smartphone to directly report damage, which dramatically speeds up the claims process. Claims management software powered by AI manages the entire process.

Technology improves customer service

Aside from the ways technology improves the customer experience for claims processing, it also enables a better customer journey. We spoke earlier about ML and data. This data allows an insurer to personalize products, and by using natural language processing (NLP) and chatbots, they can use it to provide more efficient and personalized service. NLP is what enables a chatbot to understand both spoken and written language. 

While human interaction will not be eliminated, AI can pull pertinent information about your account and either inform a chatbot or pass that information to a customer service agent instantaneously, as well as generate call summaries for future reference. AI also helps customers get general information about their policy, allowing you to ask for a copy and update your information quickly and easily. By leveraging all aspects of AI, your insurer is better able to predict what products you might need and make recommendations. Additionally, with the ability to monitor policies with AI and ML, when a change in pattern is noticed, your coverage, terms, and pricing can all be adjusted as your insurer reaches a better understanding of your particular requirements. 

AI and associated technologies speed up claims processing and allow your insurer to get to know you better to provide more personalized service and customized pricing. It also provides a more seamless and less frustrating experience through more efficient processes. It can improve the overall insurance buying and claims journey.

Avante – where technology meets human-powered, personalized service

AI and the insurance industry have the potential to be like peanut butter and jelly. This tech innovation can not only help agents and businesses with their work but improve the customer experience greatly. As it advances, so does its potential to transform all aspects of the customer experience. 

Avante Insurance is a family-owned and operated insurance agency focused on providing coverage to meet customers’ individual needs. We offer commercial and personal insurance policies, from homeowners to automobile to life to cyber security, to businesses and individuals. We are courageous, motivated, and determined to create an environment of endless possibilities – and we’re always standing by. 

Reach out to our team and learn the difference personalized service can make. 

This blog and website are made available by the publisher for educational and informational purposes only. It is not to be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state.