Artificial intelligence (AI) has changed how we live in many areas of our life.
Life insurance is an industry where AI has been behind in the tech game but is starting to make key changes and will continue to do so in 2021 and beyond. Let’s look at some ways in which AI is making it better for both the insurance company itself and the customer. 🤖
The insurance company
Being able to customise life insurance coverage options and automate the underwriting process has brought positive changes to the insurance company. Understanding the customer better to improve customer service, can lead to more flexible plans to fit the customer’s needs and therefore more trust and loyalty. A win-win for both sides!
New shoppers can get real-time quotes, just by answering a few questions. It’s not a one-size-fits-all situation any more, the quotes are more personal, based on unique needs. There is also tracking that happens with some companies, to help reduce future rates based on behaviour and habits of the customer.
It’s common practice to use AI for risk analysis as well, which will give customers more fair and more accurate premiums. It will also help spot any inconsistencies in assessments that have historically been very difficult to get accurate information on.
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Fraud detection and prevention
The insurance industry incurs billions in costs each year because of fraud. AI can analyze data and see patterns to detect fraud much earlier and prevent it from happening again. Human error can lead to genuine applications being rejected and fraudulent ones being accepted. Ouch 🤕
Efficiency AI can scan documents more quickly and identify data points in seconds. Making rapid decisions can cut down on wasted time and streamline the whole process, from reviewing the claim, verifying details, checking for fraud, and taking payments. Therefore, making the process even faster, on-demand, and more affordable.
With chatbots being used on websites and social media, there is round the clock service. They help solve basic questions, quotes, and complaints which in turn reduces costs and improves customer experience.
With AI, companies are able to gain insights into their customer’s likes, interests, and patterns, to create tailor-made suggestions and policies. They are creating more personalized policies because they understand what their customers need (just like those annoying ads you always get sent because you searched for dog food that one time 🐕).
Not only has AI become more advanced in reducing errors, but it has also taken on more tasks and can identify and use more information. A personalized approach helps the company and customer, but also provides greater insurance protection, which is the ultimate goal.
At Bequest, we have a platform made just for you, that is not only safe and secure but flexible, adapting to your constantly changing life. The platform we've built at Bequest allows us to make changes to products instantly because they are database-driven. Whether it is a copy change or modifying controls like text boxes or drop downs on a page or adding brand new questions, we can do all that pretty quickly and have it in production within minutes. It has saved us a lot of time, especially in the early days when we were updating our products pretty frequently. Life insurance and wills have been sitting on the sideline with innovation for too long, and we are excited to be breaking barriers! 🙌