TALKING

The rise in AI adoption in the insurance sector reduces the cost of operation and boosts the AI in insurance market growth .

Additionally , customers need a highly transparent insurance scheme , which is easy to understand , and quick to access . To help them achieve this objective , insurers are increasingly deploying AI-powered platforms that substitute human input through features such as automated product recommendations and query resolutions by chatbots . Insurers are also better positioned to scan medical records , data on surgeries , and hospital stays through cognitive Machine-Learning ( ML ) tools to calculate pay-out . Besides , these technology tools , aimed at speeding up the claims process , are concentrated on providing convenience to customers and lower the cost of processing those claims for insurers .

AI-powered claims processing , along with other emerging technologies such as IoT and Blockchain , is expanding the scope of the fraud detection capabilities of insurance firms . For instance , AI and ML-powered algorithms utilise anonymised data to generate nanosegments of actionable insurance risk behaviour based on modelling the interaction between the customer and the policy . These insights enable providers to create top-line revenue by identifying approaches with potential for upselling or cross-selling , improving retention rates , reassigning orphan policies , and optimising their books of business by generating realtime visibility of their risk portfolio . Real-time visibility into risk portfolios empowers executives to understand current lapse rates and surrenders better , encourages them to reconfigure pricing and product bundling , and objectively and scientifically determine its accurate reserves and capital requirements .

Future beholds

The pandemic has made people realise the importance of life insurance , which was evident from a sudden massive spurt in the number of life insurance or critical illness cover purchases in the UAE in recent times . According to the International Data Corporation ( IDC ), spending on cognitive and AI systems will touch US $ 77.6 billion in 2022 , with a significant amount of that investment focused on conversational AI applications such as chatbots and deep learning and Machine Learning applications . These investments can save auto , property , life , and health insurers almost US $ 1.3 billion while also decreasing the time to settle claims and improving customer loyalty . With such promising potential , AI in insurance is undoubtedly going to be a game changer shortly . p

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