Needing insurance is like needing a parachute. If it isn't there the first time, chances are you won't be needing it again.
--Author unknown
Building customer relationships and managing risks are key for Insurance companies. Insurance companies are making extensive use of AI are reaping the benefits of increased customer satisfaction adding to their bottom line. AI has the potential to transform the insurance experience
for customers from frustrating and bureaucratic to something fast, on-demand,
and more affordable. Tailor-made insurance products will attract more customers
at fairer prices. If insurers apply AI tech to the mountain of data at their
disposal, we will soon start to see more flexible insurance such as on-demand
pay-as-you-go insurance, and premiums that automatically adjust in response to
accidents, customer health, etc.
Insurers have yet to unlock the full potential of AI.
Machine learning use cases in Insurance industry:
- Fraud detection
- Price optimization
- Personalized marketing
- Customer segmentation
- Lifetime value prediction
- Recommendation engines
- Risk assessment
- Claims prediction
Maya Intelligence platform uses machine learning to help
patients and employers select the most relevant and cost-effective health
insurance coverage. KironMed uses
machine learning to analyze medical claims and detect patterns that may signify
health insurance fraud or underutilized services. GOQii uses data from wearable devices and
their own AI-driven ‘wellness engine’ to track health vitals and provide
healthy living advice and risk reports to individual users. Ant Financial, the Chinese fintech firm part
of the Chinese giant Alibaba Group, released software called Ding Sun Bao to
analyze car accident damage and process claims.
US insurer Allstate partnered with the Earley Information
Science (EIS) agency to develop a virtual assistant called ABIe. ABIe was designed to answer common queries of
Allstate’s insurance agents who had switched from selling one insurance product
to another. ABIe uses natural language processing (NLP) to process 25,000
inquiries per month.
Health insurance cost is increased throughout the world. A major cause of this increase is payment errors made by the insurance companies while processing claims. The best way is to use machine learning to automate a decision making processes. Will explain with a python sample code, how to automate decision making in my next Blog.