Innodata: What is the impact of technology on Insurance?
Meg: In the age of Amazon, taking more than two days to do anything is unacceptable. This includes acquiring a new policy, placing a claim, or receiving a settlement check.
Traditional Insurance institutions must leverage technology to operate at high speeds with personalized service. The entire insurance value chain will benefit from incorporating AI and RPA to meet customer demands while balancing risk in the portfolio.
Innodata: What are the emerging trends in the industry?
Meg: Technology is transforming the industry from end-to-end!
It starts with bypassing the traditional broker-seller relationship in lieu of selling direct to consumers. Gone are annual policies in place of new, transactional-based offerings to niche markets issued in real-time. This can include insurance for one day or insurance sold only through a mobile app.
With the pandemic impacting call centers’ operational effectiveness, Consumers are rapidly embracing ChatBots. Conversational AI has vastly improved to quickly and accurately complete complex tasks improving the customer experience with applications and claims processing.
Underwriting tasks, including data collection and assessment, can be automated. For instance, Life Underwriting is curating data and analytics from alternative sources to provide immediate policy issues without a medical exam. “Fluidless Underwriting” is an accelerated model based on credit, public and self-reported information.
AI-based image processing enables real-time claims processing. Auto claims use mobile phone pictures to accurately assess damages. Drones are in use to capture destruction from natural disasters or in remote areas that are not easily accessible by adjusters.
Sadly, with new innovation, new Fraud trends emerge. McKinsely reports at least 10% of all claims are false or exaggerated. Effective fraud detection involves a hybrid of big data and processing power. AI alerts potential suspicious activity by identifying repeat claimants, duplicates, relationships, prior claims, police reports, etc.
Innodata: What excites you most about the technology evolution?
Meg: As a consumer, I cannot believe how much I have come to love and embrace Chatbots. The Conversational AI algorithms are so sophisticated, the user experience is exceptional. I will never again feel I need to speak to a person to get good service.