AI breaking into insurance industry
Insurance giants have long hoped to bring more innovation into their business, but strict regulations and long-standing processes have hindered their progress. This trend has slowly started to change as more investments in technology continue to increase. AI could be one of the catalysts for the technology to change insurance in the near future.
But what will change for insurance companies will have to start with the industry as a whole.
All companies need to embrace and adapt to change if they want to stay in the industry, or become successful in the future.
Source: Gartner - Magic Quadrant for Cloud-based Business Process Management for Healthcare, Worldwide, 2017
"Without change, the chances for success are very small." – Harry Sintonen
One company that has embraced change is CSC's (NYSE: CSCO) Business Connections. It used chatbots to provide customer service through its website. The company currently has more than 30,000 active customers.
"The driving force behind the successful integration of AI is helping our customers innovate and drive digital transformation at a pace that is unprecedented in the industry. We are not just playing catch-up to market leaders; we are taking a lead position in customer centricity," said Roshan Venkatraman, general manager and VP of Customer Experience, for CSC's Connections.
"While AI brings tremendous promise for our customers, we are still in early days of truly understanding how to leverage AI and implement this in an effective way that delivers value," said Deborah Amdur, head of global financial advice for Bank of America.
But despite the encouraging stories, it is still very early to talk about technology's impact on digital insurance startups.
According to Gartner, 50% of all insurance companies are still investing in products and services that are at least five years old. There is a clear need for more research in the area.
"In light of the rapid advances in AI, the insurance industry urgently needs to develop and invest in research and development that will make its products more advanced, more customer-friendly and more competitive," said Sintonen.
There is a need to put together a comprehensive understanding of AI. Some of the topics that need to be researched are the impact on the insurer's brand, the impact on customer experience, and the impact on profit.
Adopting AI will require a long-term commitment from insurers, which may lead them to take more risks. Companies need to adopt a technology-driven culture in their organization.
Insurers need to pay more attention to AI, and realize the market's potential. The companies that can successfully adopt the technology will have a huge advantage over competitors.
There is a lot of money to be made with the use of AI. Insurance companies and other financial companies, can use these AI-driven solutions to automate manual processes and improve their bottom line.
The next 10 years will be a great time to be an investor in the insurance industry.
Free Quotes for Auto Accident Insurance
Keep in mind that insurance agencies, like almost every other kind of business, is competing for your money. The best way to ensure that you will receive the most competitive rate for your insurance requirement is to utilise services which allow you to obtain free auto insurance quotes, so that you can compare many different insurance providers. Some car insurance agencies specialise in providing insurance for drivers who are considered to be at risk. At risk drivers include those who have had a driving offence, such as a DUI, drivers who have had many infringements, whether paid or unpaid, drivers who have been involved in numerous collisions, whether the collision was an at fault collision or otherwise, and drivers who have had previous gaps in their insurance policy coverage. Drivers who fear that they may be considered at risk do not need to worry about whether they will be able to find car insurance, as there are many car insurance agencies who offer car insurance for those drivers who are considered to be at risk. At worst, the premiums will understandably be a little higher for those people. On the other hand, for those drivers who are considered to be low risk, and who drive and inexpensive car, will find that their premiums will be correspondingly lower. Car insurance companies also look to a person's credit rating in order to determine whether that person is high risk or low risk. The best way to make sure that you are choosing the right product for your circumstances is to use an online service which offers free auto insurance quotes.
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