Machine Learning Transforming Insurance

The insurance industry is by far heavily dependent upon statistics and analytics. It thrives on data. By examining a variety of data and looking for patterns, they are able to predict probabilities. This helps insurance providers create personalized risk profiles, which are used to drive an individual’s premiums and payout amounts, among many other factors. Machine learning has taken away some of the tedium involved in data gathering and investigating insurance fraud, in addition to helping the insured get the help they need. 

Common sense dictates that the best protection against danger is prevention. Vision Zero is the goal of a worldwide zero-tolerance policy for traffic deaths and injuries. Many companies are on the path towards accomplishing it thru AI. Zendrive is a mobile app that monitors customers’ driving behavior. Through the use of sensors, it can help detect potential collisions, track phone use while driving and help the driver avoid drifting, among other features. It can also use this data to reward good drivers with auto insurance discounts. 

Despite all precautions, sometimes accidents do happen. When a claim is filed, it typically passes through checkpoints as it moves through the processing system. When it’s all human-controlled it can be a lengthy process. The advent of machine learning has automated the process for many standard claims, which frees up the system to concentrate on the ones that need more time for investigation.

Healthcare underwriting is another area that has benefitted greatly by a data-driven approach because of the cost of diseases, accidents, disabilities, and death. Daisy Intelligence uses artificial intelligence to suggest prices based on individual risk profiles.

One roadblock in any human-to-computer interaction is the difficulty in parsing human handwriting into usable data. Captricity uses an algorithm called READ that is able to read and extract data from both handwritten or typed forms with 99.9% accuracy. Lemonade is a carrier that uses AI to process all of their claims quickly and efficiently, providing customers with faster payouts. 

In addition to saving money for both the clients and the insurance carriers, AI-propelled chatbots can provide 24/7 customer care service to the majority of questions people need to be answered in a hurry. When it comes time to choose an insurance plan, customers can use AI resources to narrow down their choices to match the best plan for themselves and their families.  Not only does this free up phone lines during business hours, but it also goes a long way towards relieving people’s anxiety about claims, billing, and payouts.