How Artificial Intelligence Could Transform the Insurance Workspace
It may feel like a far-off concept, but artificial intelligence (AI) could transform the insurance workspace. Technology is everywhere—from the smartphones we can’t do without to the laptops we use for work to the smart TVs we use for entertainment and our cars that no longer require keys to start. What once seemed like something from a sci-fi movie is now part of our everyday lives. Let’s look at some of the ways that artificial intelligence could transform the insurance workspace and help you to take your business to new heights.
What is Artificial Intelligence (AI)?
Artificial intelligence (AI) is the concept that a computer can learn to think, understand, and even behave like a human. This may sound far-fetched, but artificial intelligence is part of our daily lives already.
Do you watch movies on a favorite streaming service or enjoy the convenience of shopping online for merchandise? Have you noticed how Netflix and Amazon seem to “know you”? Based upon your watching history, your purchase history, and your browsing history, they will make suggestions for future purchases — and some of them are spot on.
By reviewing data that you give them (whether you realize you are doing so or not), companies can construct algorithms that can help you to do everything from shopping more to protecting your credit cards from fraud to saving both you and them money by automating more of their job functions. Is it really a stretch to believe that AI can help you as an insurance agent to sell more policies?
Although data security is an issue about which every consumer needs to be aware, the bottom line is that artificial intelligence can save you money, save you time, and help create more seamless experiences with the clients with which you conduct business.
Can Artificial Intelligence (AI) Improve Customer Service in Insurance?
Yes. Artificial intelligence (AI) can improve pricing, claim handling, and fraud detection — all of which can give you a better customer experience. And when companies automate simpler work functions, it often frees up their employees’ time for more meaningful interactions with customers, like discussing long-term goals with respect to insurance or answering the questions that only an experienced insurance professional can truly address. Let’s look at these 3 areas in more detail.
1. Using AI to Improve Insurance Policy Pricing
When it comes to insurance, one of the best ways to provide great customer service is to provide the insurance your customers need at an affordable price. With artificial intelligence, insurance companies can set the price points for their policies in more competitive and personalized ways.
You may not think of yourself as a digital marketer, but with AI, insurance advisors can learn from digital marketers. For example, if a prospect is looking for homeowners insurance and you can have information upfront like their address, marital status, and the crime rate in their neighborhood, you go into a potential sale fully informed. Artificial intelligence gives your company more to work with, so you can make better decisions, and those decisions may benefit your pocketbook.
2. How AI Can Fast-track Claim Handling
Staffing is one of the highest expenses that insurance companies have. Claims handling can involve a lot of people hours for case-solving. With artificial intelligence, insurance companies can automate some of this, which has two advantages — costing you less and saving time —which gives both new and seasoned insurance advisors the ability to sell more policies. Both can translate into better service and lower costs for the consumer, which will help to build your business and your customers’ loyalty. According to McKinsey, a global management consulting firm, artificial intelligence could increase productivity in insurance processes and reduce operational expenses by up to 40% by 2030.
3. Can AI Help Agents in Fraud Detection?
Have you ever decided to make a purchase that is much larger than usual or from a completely different type of store than where you usually shop and had your credit card temporarily frozen? If you have received one of those text messages, emails, or phone calls about “unusual activity on your account,” you have experienced artificial intelligence in action on your behalf for fraud detection. As a consumer, this may be a bit of an annoyance, but as an insurance franchisee, it can help to save your company large sums of money.
According to the FBI, the cost of insurance fraud is more than $40 billion per year. Artificial intelligence can help insurance companies to identify atypical information in claims data as well as to spot fake information that prospective customers may use to get a lower premium or bigger claim payout. With this tool, you’ll be able to focus on your real prospects and customers and their needs.
Can Artificial Intelligence (AI) Make Insurance a More Profitable Business for Franchisees?
Yes. If you own an insurance franchise, you will want both your individual costs and the costs of your franchise company to be as low as possible while delivering a quality product for your clients. As a franchisee, you are your own boss, but you are not out entirely on your own. Whether you are new to franchising or you’ve been at it for a while, you are still looking for new ideas and suggestions for how to grow and improve. Advantages like being able to automate certain portions of your business can create more time and focus for building your skills and your business.
You will want you and your employees to be able to spend as much time relationship-building as possible to establish your business. Artificial intelligence gives you a way to learn more about your prospects and customers faster, which can give you a great edge when it comes to guessing what additional products and services they may want in the future.
For example, does a given client currently rent, but based upon their demographics, they may consider buying a home in the future? Are they likely to have a son or daughter who will be driving age soon? What other types of life changes may be around the corner for them that could change their needs for insurance? Creating repeat business is a huge key to success in insurance.
Find out Where the Best Car Insurance is today
Finding new ways to empower insurance agents is one of our goals at Bluefire Insurance. We believe introducing agents to new technology will help them be more successful and competent. Now, that you’ve seen some of the ways Artificial Intelligence is changing the insurance workplace, find out how far you can go with Bluefire Insurance.