How Artificial intelligence is Shaking up the Insurance world
Today, with the help of the most advanced technologies, Insurance companies get a better chance to give more reliable and personalized products to their customers. Using Artificial intelligence and machine learning service, insurance companies can analyze to whom they are selling their products, and the insurer can understand what he is buying. It will help set the insurance amount and premium in a limit that will benefit both the seller and buyer.
One of the effects of advanced technologies is the extensibility of its workforce. It has transformed the industry as employees can now choose their work hours, location of work and work accordingly to their designation. Concurrently, it is empowering the insurance companies by offering new products that suffice the need of the workplace or taking insurance to guard against an upcoming threat. The technological advancement had made a large swap in the insurance field, which will help both the insurance company and the insurer or the organization who is taking claim for their workers.
For instance, gig workers do not have social protection as they do not have an appropriate claim for their work in these scenarios. With the aid of technology, insurance companies can design a policy that can cover the workers in its ambit. With the advancement of technologies, insurance companies now can work according to the needs of individuals or companies by providing them desired policy covers with ensuring that the insured are protected without over insuring, overpaying or overloading themselves with unneeded policies. Here are few aids that AI help the insurance companies in their services and customers with the best services.
On-demand insurance
Each individual is connected to an extensive network using their smartphones or smart devices in this technological world. With the rampant connectivity's like GPS, 5G connectivity, the motion sensor in the smart devices with the consent of its users, Insurance companies can track their location and activities. Many countries have a rule that says every employee has to be given insurance by the organization. It will cost the organization a significant amount. To avoid this, Insurance companies can design policies for the organizations based on worker activities.
Organization with a flexible workforce or part-time or temporary staff like food delivery or product deliveries, or any other services can turn on insurance coverage during their work hours. This would enable the companies to assure their workers of a proper insurance policy which will helps the organizations to avoid the purchase of more exorbitant policies.
IoT for individual insurance
IoT or the Internet of Things has a wide range of applications, starting from traffic lights, connected automobiles, intelligent home automation, to smartphones. These are wireless sensor networks that are equipped with GPS. Using these devices, data can be collected about the user. Data collected from these devices can be used to formulate a policy framework for a particular individual whose data has been collected by the insurance companies. This policy framework will depend on their job, earnings, family members, working place, lifestyle, driving habits, the place where they live and more. For example, if an individual who is a driver wants to take insurance. The police will give more importance to road accident and post-accident treatment. The cost of the policy will depend on that individual driving habits, type of vehicle and the place where he drives. If he shows safer and good driving habits, the companies can offer a lower insurance premium with a better scheme.
Safety of clients
Artificial intelligence and Machine learning can be a boon for insurance companies, making their clients safer. Like, how AI is revolutionizing the eCommerce industry. As organizations take full-service insurance for their full-time staff or on-demand insurance for their part-time staff, they have to give all the details to the insurance company. To get a better plan at minimum cost. This will include smart devices details and surveillance camera details to get the proof for the claim. If the number of claims from an organization increases. The Insurance company will analyze the data given by the organization and the situation in which the accident occurred using artificial intelligence and Machine learning technologies. After analyzing the details, the insurance company will find the pattern or the situation which caused the accident and recommends this to the organization to avoid such accident in future, which helps to reduce the number of exorbitant claims.
Reducing Insurance Exposure
Artificial intelligence can help insurance companies limit the rooting troubles caused by fraud, suspicious claim, making insurance companies save money on such false claims. As technology has made a significant change in the industrial world, it is making a drastic change in the insurance sector.
Now it is possible to reach out to informal workforces that otherwise wasn't practical, or the companies have to pay hefty amounts to fill it. The insurance companies can protect themselves from fraudulent claims which could bankrupt them. This shows that AI is serving as a boon in both the hands of serving and served.
Also, artificial intelligence helps understand customers' behaviour and needs, which in turn reveals the kind of product, experience, and services that customers value enough to pay for. At the same time risk of cyber threats are to be taken care of. The key elements in the data-driven designs of new products are not to underestimate is behavioural economics. In real-time, it is possible to monitor customer behaviour after they have bought an insurance product. With more flexibility, insurance companies will have more access to clients than ever before. This will leads to change the plans as the work continues to change.