AI trends in 2020 and the insurance industry
The insurance industry is undergoing a revolution with the surge of Insurtech and health tech. Covid-19 brings many challenges to industries across the globe. Naturally, the insurance industry has been affected as well. With the rise of artificial intelligence trends in 2020, we realize that more can be done remotely and efficiently.
Forbes predicts that this year, we will use AI to diagnose medical conditions in the healthcare field. On top of that, it is able to recommend treatments for complex illnesses. They anticipate that AI will improve our health outcomes by 30-40%, and reduce the cost of treatment by a stunning 50%.
Here, we will discuss 5 major artificial intelligence trends in 2020:
Usually, expert insurance brokers like our team at Pacific Prime would get to know your needs before finding the right plans for you. In the future, expect technology to take this up a notch. With a tremendous amount of data collected from both social media and wearables, AI will match you up with the perfect insurance plan. It will access the risks you carry and give accurate pricing for your plans.
For instance, a young and healthy individual – as indicated by the stellar results on their fitness tracker – will be recommended a plan with a higher deductible and lower premium. In other words, AI helps both consumers and insurance companies save money.
In a real-life example, Zurich works with Greater Than, a Swedish Insurtech company, to analyze the driving data of their clients and compare it with a set of reference profiles. This analysis is then used to customize and personalize premiums depending on the customer’s driving behaviour.
2. Streamlining customer service
AI will take chatbots to the next level. Most insurance companies are already familiar with the use of chatbots in customer service. They usually answer customers’ questions and offer quotes on your websites. However, this is not the only way AI could improve customer service.
In fact, many insurance companies are currently working on customizable insurance products. For example, on-demand property coverage can be done with data instantly collected from a drone on site. Moreover, some companies already provide a platform for their clients to check whether they are eligible for certain plan benefits.
Prevention is better than the cure. It’s no longer good enough to only focus on treatment. In the future, AI will be nudging you to develop better habits. A recent example would be AXA’s “Xtra” Wellness Personal Coaching app. This chatbot suggests ways for policyholders to maintain their health, which includes meeting certain fitness and nutrition goals. If successfully, this turns into a mutually beneficial relationship where you stay healthy and your insurer suffers fewer losses.
Another example would be you could collect data from a vehicle, which will allow car insurers to provide their customers with helpful feedback to improve their driving. Similarly, health tech strives to detect potential health problems and treat them before they have a chance to worsen.
4. Fight fraud
Fighting insurance frauds would be a lot easier with the aid of AI technology. For instance, Hanzo, a compliance tech startup, sifts through social media to locate evidence contradicting their clients’ claims. Machine learning algorithms can improve claims management. They are able to glean patterns that separate legitimate claims from fraudulent ones. As a result, they are widely used by most companies today.
5. Streamline the underwriting process
Underwriters will use customer behavior analytics to set premiums for healthcare insurance plans. Big data can be collected from both a client’s wearable devices and past claims history. Insurers might also partner up with third-party data vendors to get the information they need. This way, AI speeds up the entire medical underwriting process. Not only that, but this process will also become even more accurate and speedy.
For reference, drones could be used in real-time to analyze from clients’ home security systems and evaluate home-owner insurance claims.
Why should you follow these artificial intelligence trends in 2020?
If customer experience is important to you, AI is definitely worth investing in. As our world becomes increasingly reliant on technology so too, does our need for speedy service. There are already many new developments in the field with many more to come. Following the artificial intelligence trends in 2020 will offer new opportunities for insurers to contain costs and prevent loss.
Interested to learn more about the changes and trends shaping the insurance industry in 2020? Download our State of Health Insurance report today for free! It combines the insights from our in-house team of experienced insurance advisors, with wisdom from major insurance companies.
Looking for a great global insurance plan in the UK? Pacific Prime has got you covered. No matter where you are in the world, you can be sure to get the best medical treatments for your needs. Speak with our advisors for an obligation-free quote.
Outside of work, Serena spends her time buried in books and dreaming of her next travel destination.
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