The internet has changed the way we live our lives – from how we communicate with one another to how we do business.
Even the way we manage and pay bills has evolved. No longer do we have to wait for a paper bill to arrive in the mail. Instead, we get a notification via email or even text message.
Then at the press of a button, we can pay our bills or even set up auto payments via our bank account or debit card.
And we’re witnessing this across all industries, including insurance. But what’s really catching our interest is the future of insurance and the role of artificial intelligence.
So let’s take a quick peek into how the future of insurance is likely to change for the better.
The Big Data Boom
Everyone (or almost everyone) is connected to the web throughout the day. This is thanks to the smart technology in our computers, tablets, phones, and home devices.
Even our televisions and stoves are collecting data about our daily behaviors. In the insurance industry, rates get based heavily on a customer’s past behaviors.
For example, you can expect a higher premium if you’re prone to auto accidents. Thanks to connected devices, insurance companies are now able to collect important data to make better business decisions.
Carriers can now use all the data it collects to provide more personalized plans and pricing. Some will even go as far as offering real-time service delivery.
Say, you’re wearing a device that can help determine your personal risk score based on what you do daily. It can help insurers know the probability and severity of potential incidents that can arise.
Advancing Robotics in Our Everyday Lives
People are growing accustomed to having robots in their day-to-day lives. In some industries, workers are using a number of different robotics technologies to perform their duties.
Soon, we’ll begin to see robotics in our homes and non-manufacturing jobs. It’s already estimated that by 2030, 25% of the buildings in Dubai will be 3D printed.
This alone will change how insurance companies assess the risks of a property. Then there’s the onset of self-driving cars, which will enhance how auto insurers assess applicants and claims.
Imagine when self-driving motorcycles come about. This will be thrilling for riders, but nerve-racking for auto insurers, especially when accidents happen. You can see more about dealing with motorcycle accidents here.
But construction and auto aren’t the only industries affected. There’s also the emergence of enhanced surgical robots. Health insurers will eventually have to tweak their policies to accommodate these types of procedures.
Even life insurance will have to take all these AI factors into consideration.
Open Source Data Sharing
With all the data getting collected from consumers, it makes sense for private and public entities to come together and share them. The bits of data each collect can benefit the other.
For instance, smartwatches can share data with life and health insurance companies.
One day, there could be open source protocols and data ecosystems to make life easier for consumers and businesses.
Cognitive Technologies and Real-Time Behavioral Analytics
Have you heard about the military pilots who can control unmanned jets with their minds? Sounds like something out of a science fiction movie, but it’s very much a reality.
Cognitive technologies are becoming more enhanced and before we know it, it’ll be a part of our everyday lives. Surely, you’ve seen movies like Minority Report and Anon, which shows how police departments use cognitive technology to fight crime.
One day, we may have similar technologies that will help insurers monitor our daily behaviors in real-time. This can help them determine if we’re driving drunk, partaking in dangerous acts, or have decreasing or improved health.
This can work both ways. It can help lower our rates or increase them, depending on the type of lifestyles we lead.
The “big data” companies are left to sift through can become a seamless task with the help of cognitive technologies. They can process large amounts of complex data streams in real-time to recommend insurance products based on a customer’s activities and behavior.
Enhanced Personalized Marketing
In the past, insurance companies used cold-calling, mailers, radio and TV ads, and billboards to market to their target customer — everyone.
But with the help of artificial intelligence, insurers will be able to personalize their sales tactics. With this technology, agencies can collect individual customer data and build a complete profile.
This information can help with offering relevant insurance products. Plus, companies can monitor customer preferences for future interactions.
This will, in turn, help the underwriting process, saving insurers time and money. This process typically consists of asking customers a ton of invasive questions in order to calculate a premium.
With AI bots, insurers can gather info based on a customer’s social profile. This will showcase data, trends, and patterns – creating a more automated underwriting process.
For instance, someone who appears to have a healthy lifestyle would likely have a lower premium for health insurance. Or the AI may consider a person who’s worked with a company for 20 years and is family-oriented to be a safe driver.
The Future of Insurance – It’s All About AI
This is no secret either. In fact, nearly 80% of insurance company executives believe AI will revolutionize how they gather data from and interact with customers.
The future of the insurance industry will continue to evolve with artificial intelligence in tow. Already, 68% of executives are using AI-powered intelligent virtual assistants.
This is no surprise, especially with the rise of chatbots. You can find these AI messengers on just about every insurance company website you can find.
What makes them effective is their programming. They have natural language processing and sentiment analysis.
In a way, it understands what the customer’s asking for. The most efficient ones are able to provide a personalized service.
This, in turn, increases sales and customer satisfaction.
If you’re interested in learning more about the future of insurance and its ties to AI, or just about technology in general, then be sure to check out our blog.
At Sky Tech Geek, we cover everything to do with technology. So stop by our site today to read up on the latest!
