The Case for Machine Learning in Insurance In the decades preceding the 90s, industries across the globe have seen a massive digital transformation. While the insurance industry has been slow at adopting new technologies, the COVID-19 pandemic has undoubtedly acted as an accelerator. Now, insurance companies are keen on harnessing the power and potential of technologies like artificial intelligence, machine learning, big data, IoT, blockchain, and more. Speaking of technologies, machine learning has become a crucial driver of success for insurance businesses. Let’s explore how machine learning in insurance can benefit businesses and why insurance companies should be eager to adopt it.
Customer Service Customer service is one of the most popular applications of machine learning in insurance. Chatbots driven by machine learning have a positive impact on customer service. They increase efficiency, empower customer self-help and boost job satisfaction for agents and representatives. The customer service chatbots can easily handle basic customer queries and doubts, ML-driven chatbots can automate a considerable chunk of customer servicing functions. Therefore, insurance agencies can reduce the workforce handling manual tasks and focus them on more complex tasks that go beyond the capabilities of the chatbot. In times to come, machine learning will be able to provide the insurance industry with expanded forms of engagement.
Risk Management ML-powered tools help insurance businesses leverage huge amounts of data to build models for enhancing decision-making and streamlining risk management. These tools can be used for mining data for compliance and risk management. Also, by applying machine learning in insurance underwriting, agencies and help their underwriters determine the risk factors in a streamlined manner.
Business Enablement As the world is slowly recovering from the COVID-19 pandemic and the reopening of economies, insurance companies are struggling to meet the changing customer expectations. The coronavirus pandemic has significantly transformed consumer behavior trends. To meet the shifting customer expectations, insurance companies are harnessing the power of machine learning, By leveraging machine learning, insurance agencies can enjoy a host of benefits like reduced operational costs due to process automation, increased revenues due to higher productivity, and customer retention due to enhanced customer experiences.
Concluding Thoughts Machine learning in insurance is growing at an exponential pace. Despite the potential of machine learning, many insurance companies still fail to realize its capabilities. Machine learning in insurance and underwriting is paving the way to the future of the industry. To sum up, insurance businesses can achieve excellence with the help of machine learning.