Our research report Generative AI in the Insurance Industry surveyed more than 100 UK and US insurers about how they intend to use the technology within their businesses. We discovered that 59% of US and UK insurers are already using generative AI.
There are many ways to do this. This blog will take you through six practical ways insurers can start using generative AI across different business functions.
Download the free report: Generative AI in the Insurance Industry
1. Claims Processing
Generative AI can be used to speed up the claims assessment process. By analysing historical data, generative AI models can identify patterns and make predictions, expediting the claims settlement process and reducing manual effort. Claims handlers can use this to prioritise claims based on their likelihood of being legitimate, expediting the assessment process. AI systems like Sprout.ai can automatically handle routine claims, allowing claims handlers to focus on complex cases that require human intervention.
Read more: Debunking 9 myths about generative AI and insurance
2. Fraud Detection
Generative AI algorithms can be used to identify and flag potentially fraudulent claims, then set out the analysis in an easily readable report. Employees can then receive automated alerts and comprehensive reports, making it easier for them to investigate and take appropriate actions against fraudulent claims promptly. It can reveal unusual data points and patterns to detect anomalies faster than a human, helping insurers mitigate risks and reduce fraudulent activities.
In addition to fraud detection, generative AI can aid in fraud investigation. By analysing extensive datasets and identifying suspicious patterns, the AI model can assist investigators in uncovering complex fraudulent schemes, ultimately reducing the financial impact on the insurer
3. Loss Prevention
Generative AI can also be used to analyse historical loss data and identify patterns that indicate potential risks or areas prone to claims. Insurers can then proactively take preventive measures, such as risk mitigation strategies or policyholder education programmes, such as offering risk-reducing incentives to policyholders in high-risk areas or enhancing safety guidelines for specific insured assets or activities.
4. Customer Service
Read more: How AI helps claims handlers provide a better customer experience
Generative AI can be used for chatbots that can handle simple customer inquiries, provide personalised recommendations, and assist with policy information and claim status updates. These virtual assistants can handle routine customer inquiries 24/7, providing instant responses to frequently asked questions, policy details, and claim status updates. By freeing up customer service representatives from repetitive tasks, employees can focus on more complex issues, ultimately improving customer satisfaction.
It can also streamline the onboarding process for new customers by automating risk assessments. By quickly analysing applicant data and historical claims information, insurers can make informed decisions about policy approvals and coverage terms.
Read more: How can insurers create people-centric business with generative AI?
5. Underwriting and Risk Assessment
Generative AI can rapidly analyse vast amounts of data, including demographic information, historical claims data, and external factors, to assess risks and determine appropriate policy premiums. This enables more efficient and accurate underwriting decisions, ensuring fairer pricing and less leakage.
6. Marketing Campaigns
Generative AI can assess customer data and create targeted marketing campaigns. With this enhanced understanding of customer preferences, insurers will be able to more easily identify the most relevant products, channels, and messaging for each customer segment. Generative AI can also analyse customer feedback, reviews, and social media posts to gauge customer sentiment towards insurance products and services. Insurers can use this information to identify areas for improvement, address customer concerns, and enhance overall brand reputation.
Conclusion
The examples here represent just a few of the ways insurers can use generative AI to enhance their operations and services. From expediting claims processing and detecting fraud to improving customer service and tailoring insurance products, the possibilities are vast. Generative AI can lead to more efficient processes, better risk management, and ultimately, a competitive advantage.
Here at Sprout.ai, we use generative AI in a number of ways that help us automate claims processing fast. From the creation of synthetic data to policy checking, generative AI has helped us create a product that insurers can integrate into their current systems at speed.
To learn more, download the report, or book a call with us.
