By RGA Global Products and Market Intelligence
RGA provides quarterly updates on global product developments, which can be made available upon request. For the complete copy, contact RGA.
Artificial Intelligence in Insurance
Adoption of technological developments known as Artificial Intelligence (AI) are gaining ground in insurance. AI allows computers to perform tasks that typically require human intelligence. The trend of applying AI is most apparent in insurers’ efforts to improve and streamline processes, especially in the areas of customer experience, claims processing, fraud detection, and underwriting. Insurers are motivated by the potential ability to leverage vast amounts of data to gain better insights into their customers and improve insurers’ ability to predict/forecast risk.
AI has great potential to improve customer experience and engagement by facilitating faster and smoother insurer services, including sales, underwriting or claims processes. The increasing use of chatbots by insurers testifies to their effectiveness as sales tools, as assistants in claims processing, and in ensuring customers have adequate insurance coverage. They offer personalized service and are easily accessible to customers through messaging apps which many customers already have on their phones. Comparison sites, also known as insurance aggregators, are another example of AI application. These sites offer customers an easy way to compare features and costs of products online and to obtain quotes from different insurers.
Leveraging AI technology allows insurers to reduce claims processing time, achieving better customer experience and reducing handling costs. At the same time, use of AI’s self-learning and pattern analysis abilities enables insurers to improve their capabilities to identify fraudulent claims. In underwriting, there is an increasing trend to apply AI to automate the underwriting process as much as possible. AI’s ability to more-accurately predict an individual customer’s risk allows insurers to offer each customer the right products with the appropriate risk protection amount.
Insurance is driven by data, and by using AI, insurers are discovering new opportunities to change customer experience and to provide products and services better aligned with their customers’ needs. In addition, AI is becoming a distinctive competitive advantage, bringing overall operating costs down and helping insurers grow their customer base.
Stay tuned for future releases of our quarterly newsletter to see where the next innovations will take us.