The upside of AI for industry is often that it makes life easier for businesses and their shareholders. In insurance, it opens up opportunities for customers. …
Geico, the nation’s second-largest auto insurer, offers an app called Kate that enables policyholders to ask questions using natural language processing and receive answers in a chat window.
Metromile, which went public this year through a special acquisition company merger with Insu Acquisition Corp. II, provides pay-per-mile auto insurance that takes into account driving behavior as well as data from telematics devices,…
… said CEO Dan Preston on a recent earnings call.
“The only way to truly provide savings is to make use of those [data sources] in underwriting,” he said.
Automated Risk Assessment
AI will completely reshape how auto and home insurance are bought, sold, underwritten, processed and handled in an era of connected cars and software-enabled vehicles. The experiences for purchasing can become faster while bindable quotes will become available within minutes or seconds—creating a true frictionless purchasing process for consumers….
Generative AI will open up new levels of data analysis by running models quickly but also accurately assessing individual policyholder risks. Using advanced data mining techniques, predictive analytics and deep supervised learning algorithms will enable companies to identify specific risk profiles rather than the rough factors used in traditional analysis throughout the past decades.
Visual artificial intelligence will speed up claims processing by eliminating the need for an adjuster to see every car in person before putting out estimates. This reduces costs…
and improves customer satisfaction…
by making service times faster while cutting down on adjusters’ need to go outside during hot or cold weather conditions or inclement weather like hail storms….
If an adjuster does have to go look at something manually because they didn’t get enough images submitted through the platform, Lemonade’s model has already given them all the information the AI can…
But this is an area where AI has been able to help, said Ty Sagalow, CEO of innovation and insurance consulting firm Innovation Insurance Group.
Predictive Modeling
… which insures low-mileage drivers, saw its stock price soar in March after California’s Department of Insurance approved a company request to review customers’ mileage and offer discounts based on that data. The change had been on track to take effect this summer anyway…
AI will completely reshape how auto and home insurance are bought, sold, underwritten, processed and handled in an era of connected cars and software-enabled vehicles.
Generative modeling’s rapid processing of large volumes of data allows insurers to quickly pinpoint top risk areas,…
predict likelihoods of accidents or other perils,…
gain valuable insights from data-driven decisions,…
and make informed strategic decisions.
The same type of modeling can also be used for high-frequency tasks like document scanning in claims handling. When the technology scans thousands upon thousands of images quickly while inputting them into human-understandable databases…
It also helps knock out certain low-value but time-consuming processes, such as evaluating water-damaged drywall cases…
Claims Prevention
Insurance companies rely on claims prevention technology powered by AI-powered software utilizing predictive analytics to reduce fraud and enhance customer experience…
While it may seem like that would give too much away about the company’s secrets to criminals who were otherwise never going to figure them out—and then use that knowledge for bad—Sagalow said there are millions of ways someone could defraud a platform like Lemonade other than learning its algorithms.
And even if some tech-savvy thief did somehow find a way to game Lemonade’s system—like getting free money out with their renter app—he speculated there would likely still be a chance to catch them before they even got started.
Generative AI gives insurers a way to inspect huge more. And this is where things get creative. If you put the right data in front of them, and feed them enough input, they’ll be able to reduce rates and create a custom experience that benefits all parties involved.
But what is some right input? One tool that fits in this category is telematics solutions. These guys use IoT sensors to get real-time usage information for usage-based insurance (also known as UBI). The name may sound complicated, but the concept is simple: it’s an incentive-based system which encourages drivers to drive less while also lowering premium costs. It’s a win-win.
Another thing that can be done with generative AI is using natural language processing (NLP) and image recognition software even more efficiently by quickly assessing one thing really fast: damage photos taken at accident scenes. This saves everyone time and money.