How can insurance companies facilitate AI for business automation?


To provide the customers with the service, appropriate to their demands, the insurance industry should now widely utilize new technologies.

The professionally created automation solutions open up new horizons for finance, healthcare, eCommerce. It also applies to insurance, where automation can help increase the level of customer satisfaction, improve communication, and speed up the operation of the service as a whole. 

Why should you implement automation? According to Accenture, in insurance companies, 75% of managers believe that the best solution at the moment is artificial intelligence. It will help change the insurance industry over the next three years radically. The article presents the four most relevant software options for insurance automation.

Problems in insurance industry that automation can solve

Automation is a technology that can perform a task without human help. In insurance, these can be information submission processes, data processing, working with policies, and underwriting. By assigning the task of custom software creation to mature programmers, working at the intersection of data science, ML, and software development, you can get the tailor-made system for your particular business needs.

– Grueling paperwork

Most of the hassle at work brings paperwork. As statistics show, an everyday employee of an insurance company spends half of their day working with papers. Part of the automation in this issue is already used, but it is worth considering a full introduction.

– Recurring tasks

Routine repetitive tasks include collecting and processing information. Such similar work takes a lot of time and effort, and also distracts the attention of the employee.

– Data Search

Quite often, it is hard to find the needed file in a huge database. For such cases, automation is the best solution. You can use it to quickly search for files, classifying them by categories and attributes.

– Only with the help of a human

For quite a long time in the insurance industry, all decisions were based only on the experience and qualifications of employees. The human factor always leads to risks. What can lead to an error, even on the part of a competent employee? Fatigue, absent-mindedness, decreased focus on work, problems in life, and health that affects mood.

Electronic forms

An electronic form is an analog of a paper document. Every employee daily has to deal with a large volume of forms that need to be filled out. Electronic forms have some advantages in this situation:

1. Easy to operate. Manual input takes a lot of time, and electronic forms themselves perform the calculation and formatting of data, as well as their verification.

2. The price is lower. Electronic forms are much cheaper than paper forms. As statistics show, one paper form can cost from $ 30-165 for general maintenance.

3. Save time. On average, it takes 40% less time to fill out electronic forms. They can be quickly copied and distributed, as well as dynamically modified in all ways.

The introduction of mass use of electronic forms is the easiest way to introduce automation in the insurance industry.

Self-service portal

Currently, many customers use the self-service option. That is why a reliable self-service portal will be convenient and profitable in the insurance industry. Now the culture and economy are based on mobile technologies, so you need to use them to the maximum.

The self-service portal is not about automation, but rather a platform where you can enable automation functions. What can customers do with such a portal?

1. Access to data 24/7

2. Self-management of policies

3. Full visibility of the firm’s policy

4. Ability to control invoices, statements, transaction histories, requests, claims

5. Ability to receive feedback from technology support

6. Checking the request status

The only disadvantage of the self-service portal is the reduction in the time that employees spend on the administration of this area.

Applying the policy to underwriters

Underwriting – services provided by a financial institution that guarantees the receipt of payments. This process requires a lot of experience from employees and must be performed quickly and reliably. Automation can help with this issue.

The Application Decision Assistant should make the decision-making process easier for the underwriting staff. This program makes recommendations for accepting or rejecting a task or offers to review the issue manually.

Properly programmed consultants can be good assistants, but it is too early to fully automate this process. They can reduce the amount of work for the underwriters so that they can process more applications. But the program can’t fully perform its work yet.

Detecting fraud

The Anti-Insurance Fraud Coalition said that $ 80 billion a year is lost in this way. Every company faces this problem and tries to eliminate it by all means. Automation has long been used in this issue, it helps to identify false claims. And about 75% of insurers use such automation. But practice shows that this is not enough and it is necessary to switch to the use of artificial intelligence.

The main advantage of artificial intelligence over automation in the matter of fraud detection is an adaptation to new fraud schemes. Automation also operates within the limited limits of the specified settings.

The principle of artificial intelligence will look like this:

– Data analysis

-identification of irregularities in fraud schemes

– Recognition of similar behavior in the future

After repeating these stages, artificial intelligence improves, improves.

Chatbot-based agent

According to the survey, 72% of respondents say that they like to get answers to questions online. In the modern world, time is the main resource. The ability to quickly respond to customer questions online is an advantage of any insurance company. A chatbot can help you with this.

What can a chatbot do?

– answers to policyholders ‘ questions in a few seconds

– show customers their coverage amounts and account actions

– facilitate the process of filing claims and renewing claims

Insurance automation in the future

The modern world is changing rapidly, so constant development is a mandatory process. If the insurance company understands the necessity of switching to automation, then it lays a solid foundation for the future of SEK. We live in a digital age, which even such an epoch-making sphere as insurance should correspond to.