While the concept might still seem somewhat like science fiction, artificial intelligence (AI) is now part of our everyday lives.
Think about all the times you’ve made a purchase online and were immediately offered a suggestion for your next purchase. That’s AI in action. The spam filter on your email account? Also AI at work. Our smartphones, laptops and other internet-connected devices provide massive amounts of data. AI then analyzes and organizes that data to improve our everyday lives.
AI can recognize patterns in large amounts of data. This gives it a predictive capacity that’s highly valuable for the insurance industry. But how does this innovation change your customer experience? Let’s look at a few examples.
AI provides an automated buying experience. Chatbots can pull your geographic and social data for personalized interactions. And insurance companies can let you customize your coverage for specific items and events. This is known as on-demand insurance.
Eventually, AI will be able to independently help you purchase a policy, file a claim or update your information.
Insurance-specific AI can create personalized rates based on your choices and lifestyle. Telematics and wearable sensors collect information about you.
For example, if a telematic device is installed in your car, it can gather information on: – How fast you drive on average – How quickly you accelerate – How hard you brake
Telematics is also known as usage-based insurance. The information collected helps your insurance company build a comprehensive image of you as a driver. It can indicate how likely you are to cause an accident and how risky you are as a customer. It can also save you money on auto insurance, if you drive safely and you don’t drive much.
Historically, insurance pricing models have been based on statistical samplings of past performance. That is, companies study your driving record and build their predictions based on that information. This new approach lets insurers use real-time, current information for premium pricing.
Right now, the insurance industry requires numerous staff to process and review claims. This can impact policy pricing and make resolving claims more cumbersome. Chatbots can replace some of these manual tasks. A chatbot can help record a claim, verify the details, ensure it’s not a fraud attempt and forward it for payment.
A chatbot can analyze digital images or videos to assess the amount of damage. This can replace the lengthy process of sending an insurance adjuster to take photos and make a report.
With the use of AI, you’ll get much more than an insurance policy. You’ll get personalized products adapted for your unique needs. You can also expect more streamlined service. Contact our Team to learn more about current uses of AI and future changes. Both of you are likely to benefit from AI’s efficiencies and innovations.
– Your Downeast Insurance Team
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