Insurance companies are using data analytics to process claims for consumers. Furthermore, AI-powered virtual agents accelerate and augment the claims processing. It also becomes easier for the companies to collect the personal information of policyholders and other third-party data through AI-based agents.
How AI is actually assisting the insurance companies in processing claims?
- Consumers will always want a faster and more effective claims settlement. Therefore, AI-powered virtual agents will help insurers to conduct remote inspections faster by automating labour-intensive tasks. For example, an insurer can assess damage for a car accident through image sensing. It will save time for the insurer and the consumer.
- Conversational AI will help to spot anomalies in claims data. Therefore, insurers can prevent fraudulence claims or sometimes false information lodged by the consumers to claim bigger pay-outs. AI carry out the job by going through the consumer’s historical data.
- The claim management process will happen effectively through AI as it can help prevent errors, lower fraud risks, and speed up the claims process.
- AI will help to improve the operational efficiencies of insurance agents. It can avoid retyping user data and reconciling data from paper-based forms.
According to research firm McKinsey, the claim processing time is reduced from weeks to minutes with the help of AI technology. Moreover, insurers will also have the opportunity to personalize their service to attract more consumers.
Apart from faster and seamless claims processing, AI has other benefits. The insurance sector is yet to benefit from AI technology as it evolves.