Machine learning is helping businesses throughout the insurance industry save time, effort and money
Insurance is a particularly data-rich industry, and harnessing the potential of automation and analytics can be hugely beneficial when it comes to saving time and maintaining a more customer-orientated focus.
Making use of AI can help insurers stay ahead of the competition and make the most of the vast amounts of data they are protecting. Not only does this cut costs, time and money, but it can also help insurance businesses emerge as industry leaders, providing the right information to the right users at the right time.
With that in mind, here are some of the most impressive benefits of AI and automation that can help insurance organisations drive their businesses forward.
Better access to insights and data, meaning better knowledge transfer
The very nature of AI means that introducing it into your business requires you to build an accurate data foundation, which can support your team members and customers. Having easy access to data sources can help any organisation make more accurate decisions. But this is particularly true in the insurance sector where more information directly contributes to better decision making and the mitigation of risk. Even better, the process of layering data over time feeds the machine-learning model, which serves to optimise future outcomes.
Shorter sales cycles: the right information, the right people and the right time
Efficiency is everything in the insurance industry. Short sales cycles are key to long term success, and that’s exactly what AI aims to deliver by improving the accuracy of sales efforts.
When an insurance submission is received, it is scored against predictive models in real-time for factors like broker sincerity and projected loss ratio. From there, AI software can create a ranking system which helps to answer questions like, “Which risk should I work on next to most benefit the company?”
In other words, AI is able to determine the best course of action based on insights, both past and present. By bridging the gap between insight and action taken with smart recommendations, AI can shorten the sales cycle and improve the likelihood of success.
Profitability and consistent employee performances
By maximising efficiency, learning and speed within an organisation, AI is a long-term investment that can cut costs while also boosting profits. AI eliminates the guesswork associated with decision making, meaning decisions become more accurate and consistent. This can help less experienced employees learn the ropes much more quickly, because they receive recommendations based on past decisions that have been validated by the wider team.
Reducing errors and increasing resilience
Unlike humans, working quickly to handle claims and process contracts doesn’t increase the likelihood of errors where AI is concerned. While an employee’s accuracy may suffer under pressure, it is not possible to make an automated solution feel rushed.
And speaking of errors, AI solutions can also benefit organisations from an information and cyber security standpoint. With the vast majority of breaches and fraudulent activity still attributed to human error, utilising digital solutions that are ultimately less fallible can play a significant role in making insurance providers more robust and resilient to attack.
In particular, automated AI software can help to determine fraudulent patterns, improving the speed with which these situations are flagged and solved. The results and feedback obtained from investigations into cybersecurity incidents can then further improve the AI’s data defences, creating a cycle through which AI is constantly improving and becoming smarter. Which each new piece of information received, the algorithms involved in machine learning improve and evolve.
Looking to embed AI-based solutions into your insurance business to reduce error, improve efficiency and enhance customer service levels? Find out more about Cortical.io can be of service by clicking here.