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Companies still go through tons of information every day and that costs them a fortune. These tasks are tedious and time-consuming, and getting humans to do these tasks doesn’t necessarily mean better outcomes. So, many insurers are actively looking for solutions that will streamline some of their processes.
The General View on Adaptation
According to recent surveys, ¾ of CEOs are actively looking for or wanting faster processing and looking for technological advancements in the field of artificial intelligence to deliver it. This means that there is hardly any resistance against change and trying new things. They certainly have bigger pockets to invest in areas that can help them cut costs.
Cost Implications
Recent calculations suggest that machine learning, internet of things, usage of big data and similar technologies can deliver as much as $1 trillion dollar a year savings in this industry. That is a huge sum and that is why they are so keen. Furthermore, early adaptation would give a clear edge against the competitors.
One point comes to mind from motorists’ point of view. It is all good, but how would it affect the premiums? You would naturally think that such savings on their part should translate into cheaper auto insurance quotes. Unfortunately, it doesn’t just work like that. It may take a while before it starts reducing policy prices. Usually, consumers only see the cost benefits when a technology becomes widespread.
Until then, you should keep shopping for lower car insurance rates online. At the moment, this is your best bet. Besides, you wouldn’t really know who blinked first and reduced premiums until you get a few quotes and compare them.
Machine Learning Use Cases
One of the things people often talk about is big data. The problem with it is that it really is big and needs to be sorted out to be useful. You can collect all the data you want, but what you make of it is how you can use it. Computers can process the information, learn from the repetition, and apply a thought process to solve problems.
The most obvious area for use is claims handling. This is one area that deplete resources and is essentially easier to streamline since it is highly repetitive. Already, some companies are using IA to process claims from start to end. For example, there is software that can look at accident pictures and determine the level of damages and costs to repair.
Another commonly used area for artificial intelligence is customer responses. We are all familiar with it as chatbots. After a while, people end up asking similar questions that they can be sifted through and answers can be worked out by computers behind these chatbots. The thing is when they get going, these computers will only improve in time with machine learning and get better and better.
A third popular area of use is providing car insurance quotes. There are so many different applicants with all sorts of variations. However, all those details can quickly be processed with clever computers, categorized and priced in no time. Of course, it doesn’t end there because the customers need to be processed to the end and get their policies sent.
Trying to achieve all these things manually is out of the question anymore. Computers are already selling policies, issuing documents and dealing with customer inquiries that there is no going back. Vehicle insurers are currently looking for the next giant leap in this area that will differentiate them and bring in the big money.
There are two choices. Either an auto insurance company will sit back and let others spend big money to develop many great programs, and they get in when the technology is cheaper to adopt. Or they will spend the money themselves and hope that they can be the leader in this field to reap the rewards.
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