Why Insurance Companies Need to Embrace Emerging Technology

It would be an understatement to say that machine learning and artificial intelligence have made some type of impact on nearly every sector and industry around the globe. In addition to the energy, healthcare, real estate, and consumer goods and services markets, the influx of emerging technologies is disrupting the financial and insurance worlds as well. 

It is crucial for industries to embrace the future of a reduced human workforce and to learn how to work in collaboration with machines, not against them. The advent of machine learning and its ability to process big data will give partnered insurance companies an enormous boost over the competition that refuses to do so. The main advantage comes from a machine’s ability to read and identify massive quantities of data that a human would never be able to. In addition, the device can see patterns in the data, sort it, and predict behaviors. This means making a fair estimate of an incident’s causes, leading to a timely and unbiased assessment of damages, resulting in speedy and accurate claims processing. From a customer service perspective, this is a dream come true. 

Another way that an insurance company would benefit from emerging technology is by having a chat-bot on their website. This is a feature that is becoming increasingly more popular because of its ability to respond 24/7 to the majority of general questions for customers. In addition to making customers happy, the call centers’ employees will also be relieved of stress due to fewer anxious phone calls and an overall decrease in caller volume.

Many industries are also embracing the concept of digital portals. These are web-based platforms that combine data from multiple sources into one easily manageable location. Unlike websites designed to maximize traffic, web portals are meant to filter out the majority of visitors and only share relevant data to those with login credentials. Customers and employees can access the interface and use it to review customer data, a claim’s history, and status updates.

In general, the future of machine learning and automation will benefit the world of insurance in many ways, either by saving time, money, or aggravation. Underwriting will be handled faster and more efficiently. Claims will be filed based on a vast array of knowledge sorted by a clients’ history and predictive analysis.