4 ways AI can benefit the insurance industry

This post is part of a series sponsored by AgentSync.

4 ways AI can benefit the insurance industry

Advancements in technology have given new life to the slow and inefficient processes common in the insurance industry. While the flow in AI-managed systems has some employees concerned about job security, there are plenty of reasons why the human touch is still a critical component of insurance.

Automation is on the rise in all industries

We have all heard it being said before that sooner or later robots will rule the world. Whether you believe it or not, the facts seem to paint the same picture that no industry is safe from automation. It is estimated that AI will replace 85 million jobs worldwide by 2025. While this is great news for consumers who will no doubt celebrate the increased efficiencies that automation brings to their daily lives, what does this mean for those whose jobs are at risk?

Well, what if the question on employees’ minds wasn’t, “When will robots take our jobs?” But instead, “How can we work with bots to better serve our customers?” That way, the conversation about AI never has to end between us vs. them.

Technology should not replace humans, but they should be empowered by it; In consumer-facing industries such as insurance, the human touch is still absolutely essential.

The increasing use of artificial intelligence in the insurance industry

You might be thinking, artificial intelligence in the insurance industry… really? Sure, historically, this industry wasn’t exactly known for its technological innovations, but as Bob Dylan once sang, times were changing. As it stands, 21 percent of insurance organizations report that they are currently preparing their workforce to adopt AI-based systems. Artificial intelligence has revolutionized the insurance industry, which was once known to be riddled with time-consuming tasks and manual inefficiencies.

The automation revolution has proven instrumental in helping insurance companies grow, save money, reduce fraud and increase efficiencies. However, relying too heavily on technology and completely removing the human touch from insurance processes can be detrimental.

The truth is that only a human can understand the true scope of a customer’s needs and the emotion behind each sale. Multiple areas of the insurance industry are already benefiting from the human-machine partnership.

4 areas of the insurance industry that benefit from artificial intelligence but still need the human touch

1. Fraud

Technology is already helping us stop fraudulent activity in the insurance industry before it becomes a bigger problem. AI-powered fraud detection systems can save patterns and alert users to suspicious activity. For insurers who handle sensitive data, the added level of security can help build trust with customers.

However, while AI-powered systems may alert users to fraudulent activities, they do not actually detect the scam. This role is still left to humans. Once a system indicates suspected fraud, individuals must still act on that knowledge to stop the fraud from actually occurring and determine if the activity is truly fraudulent. Then, the humans running the system can feed that knowledge into trying to cheat back into the AI-powered system to boost its accuracy the next time something fishy happens.

2. Claims processing

Claims processing is full of labor-intensive and low-value tasks that in many cases are still performed manually. Not only does this waste employee time, but it can also lead to human error and additional costs. For these reasons, insurers can and should enhance their use of technology for faster and more accurate claims settlement, as well as at a lower cost to the company.

In an increasingly automated world, personal involvement when the customer needs it most can be a differentiator. The customer experience throughout the claims process is critical to an insurance company’s retention and growth.

While AI-powered technology should be used to relieve insurance company employees from time-consuming tasks, it should not completely replace the human aspect of claims processing. Instead, technology should arm professionals with the tools they need to speed up resolving claims, giving them more time to build customer relationships.

3. Product preparation

The insurance industry is currently facing a talent crisis, which is making it difficult for companies to find and retain good producers. As recruitment competition increases, agencies with outdated producer onboarding processes risk losing talent to competitors who could offer a more efficient experience.

If your approach to product setup is riddled with isolated data, disconnected processes, and compliance errors, now is probably the time to update. AI can be a powerful tool in the onboarding process, especially when it comes to new employee paperwork, IT onboarding, and training.

While technology can help attract new producers and get them to sell faster, it should never replace a genuine human welcome to a company. When it comes down to the subject, HR is all about people. Removing the human element from the onboarding process entirely isn’t the best way to show new employees how excited you are to have them on your team.

4. Client communications

In the early stages of the Covid-19 pandemic, companies across all industries have been given grace as they learn to adapt to new, all-digital, non-contact ways of operating. Nearly three years later, many customers now expect companies to offer digital alternatives or additions to their services.

Nowadays, customers communicate via email, video calls, submission forms, and even text messages. AI-powered chat boxes are an easy way for customers to get quick answers. Online communication makes it easy to send and receive information almost anywhere and anytime.

There’s no denying that AI has improved the customer experience, but there’s one big area where it’s undeniable: human connection. Insurance customers still want and need expert guidance from independent agents. No two clients are exactly alike and it takes a real person to understand the unique needs of each individual policyholder.

Make way for the partnership between humans and machines

The insurance industry is in a unique position. Insurance professionals have the opportunity to combine the best technology and the best people to deliver faster, more accurate service to their clients.

Just as refusing to embrace technology will limit agency growth, so will the removal of humans from the equation. Only companies that find ways for employees to use technology to their advantage will be able to provide the effective and personalized services their customers crave.

If you’re ready to see how AgentSync can efficiently and accurately empower your team, schedule a demo today and let us show you how it looks even better.

InsurTech market data driven by artificial intelligence

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