AI In Insurance – How the Coronavirus epidemic will effect AI innovation in the insurance sector
Every industry is very much disrupted like anything that hasn’t since decades. And most of the analysts and researchers are comparing it with some of the known epidemics and financial crises that came up in 200; it was affecting every corner of the world and every industry. Compared to other sectors, the insurance sector is most impacted as never. In this crisis, smaller insurance companies are going to affect more with the new requests, and large companies are going to downsize to come out of this tough situation.
However, the latest advancements in technology like AI will place an end mark. In fact, new discoveries are the most critical factor that helps winners to survive in these unfortunate situations. And, in these conditions, an investment priority also varies.
In the discussion, we are going to look after essential trends in the insurance sector. And we also cover known AI startup companies & AI investments in the industry, which are keenly focusing on alighting the sections of the AI space in insurance that we are expecting to grow and find the right match with ongoing trends.
Before we move on to key points, let’s have a look at the new or alternate market for this epidemic insurance.
New markets for pandemic insurance
The insurance companies will calculate the possibility of risk for various events, from economic downturns to tsunamis. The current epidemic not only defining how insurance companies write their policies & their guidelines and also handles their insurance claims, and most importantly, how they will measure the upcoming pandemics.
The first thing that comes into the mind when we are predicting the spread of the virus is the federal government. The large insurance enterprises will also involve in these business models because when future unpredicted events happen, they can alter their sales offerings to adjust better & prepare for alike events in the future; it may be years or decades.
This new market also involves gathering of information or data from new third-party sources from non-profit organizations and government across the globe, which are raising be keeping a pulse on emergencies and participate in new modes of predictive modelling.
At present some of the AI enterprises and startups are helping insurance companies to estimate the risk, predictive apps for pandemics are expected to be tough that a new ecosystem of solutions will develop, and many insurance companies are planning to build these in there in houses.
How will insurance companies react to remote working?
According to the stats, approximately 43% of AI solutions are working exclusively for the underwriting in the insurance sector.
These applications are also capable of increasing revenue apart from reducing the risk of insurance companies or carriers. As everyone working remotely, it is the right time for them to refocus on making up the workflows of the critical business areas.
And most of these new or altered configurations are planning to include some sort of automation. The AI involves in the conversations in the workflows required to automate.
It will be good for the insurance carriers to get used to remote work for the unpredicted future. Because of these, applications (conversation interfaces & enterprise search) that are making remote work flexible will get a significant market share that currently underwriting services are enjoying.
Now let us have a look at the applications.
The app enables all employees to search via a company’s digital ecosystem such as website, CRM, call center logs, email management software, and many more. It allows an employee to ask a query using the search console to pull up emails and documents. These applications will get more and more demand in the future as many companies are shifting or adopting remote work culture.
Just imagine you are a claim adjuster of an insurance carrier, and you want to check whether if a claim is fraudulent or not. In these types of situations, one claimer can seek the help of his fellow claim adjuster. It is not that much in remote working conditions.
As an alternative, the adjuster can use an enterprise search app to find out the related claims in their firm’s digital ecosystem. It also used for:
Underwriters: They can use it for analyzing previous customer’s purchasing power by which they can get an idea of what to price a new insurance applicant policy.
Customer service agents: It helps to get a complete view of the customer.
Just look at the marketing video of the Sinequa, which is an AI-enabled enterprise search vendor that is helping the insurance sector.
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How will remote work affect cyber security in the insurance sector?
Digital mode of communication is vital in these times because everyone is working remotely, and it is expected to be much more remote in the coming up times.
As everyone is thinking about surviving, cyber security employees or teams are forced to work remotely. And it is causing new types of risks & new kinds of campaigns.
The teams need to focus on strengthens the applications, which find out anomalies in internal communications or social engineering emails through various channels such as email and chat. And also develop new applications & protocols for finding the bugs working culture with the particular digital ecosystem.
While everyone is working in the office, the firms are aware of the who are accessing their database. But, now the situation different because everyone is working remotely. So, insurance carriers need to develop new methods of authentication for safer accessing of the program or database.
Significance of customer service automation
Conversation interfaces & enterprise searches are part of the AI-enabled customer service app.
With the help of an enterprise search app or software, all remote working employees can fetch necessary data or information from multiple digital sources. It also helps in decreasing the interaction between employees within the organization when they are going to handle requests or inquiries.
It provides a 360-degree view of the customer to the enterprise search vendors, and it is going to give more authenticate information across the globe. The enterprise apps will bump up the work of active employees. Chatbots & conversational interfaces have the ability to automate customer experience, by providing users info in a chat window or steering them to the concerned person through phone, email, or chat.
If you observe clearly, you can see most of the top insurance carriers are using Chatbots to provide an exact quote for the right customer, and it also used to provide primary information related to the policies and how they work.
Maximum Chatbots are used for guiding the customer to the right department, but companies are not showing much interest in the investments by keeping the current situation in mind.
Auto insurers are very much familiar with the AI. In this time, there is a possibility of getting a massive number of calls & traffic for the site to know about their policies & also want to update their existing ones. As the auto insurers are in demand, the companies may hire salespeople & new customer service agents. So, the companies should opt for Chatbots to meet the higher demand from the customers.
Surviving pandemic interruption in the insurance sector
There is no history that insurance companies are paying for this type of pandemics. But, after SARS hit severely, they made sure that pandemics were not included in any kind of campaign. Above all, most of the insurance companies are affected by this financial crisis as businesses are forced to stop, many events forced to cancel, and no one expected this level of damage.
Because of the reasons mentioned above, companies are forcibly changing their existing working process and business models. And currently, companies are focusing on their strong areas where they have the majority of the share.
The companies are planning to focus mainly on the market areas where they are very much confident of the success.
Just have a look at the simple for better understanding of the above scenario:
Let us take an industry, which is very good at lending to farmers; they can double that line of business, and also companies with a firm grip on particular sectors like manufacturing can dig deep into the specifications & needs of those industries.
It is very much needed because we are moving to a new section; the funds will be limited. Now, it is time for insurance firms to build. It also crucial as the new normal may change many facets of the business, and most of the time will go on just adjusting it.
So, it’s our sincere advice for all the insurance companies to alter their sales & service methods.
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