Technological progress has injected new vitality into the slow and inefficient processes prevalent in the insurance industry. Although the wave of AI driven systems has caused some employees to worry about work safety, there are many reasons why human exposure remains an important factor in insurance.
Automation is growing in all industries.
We have all heard that robots will rule the world sooner or later. Believe it or not, the fact seems to paint a picture that no industry is safe. It is estimated that by 2025, artificial intelligence will replace 85 million jobs worldwide. While this is good news for consumers, who are sure to celebrate the increasing efficiency automation has brought to their daily lives, what does it mean for those whose jobs are at risk?
So, if the question in the minds of employees is not “When will robots take over our work?” but “How can we cooperate with robots to better serve customers?”, The conversation surrounding artificial intelligence does not necessarily end between us and them.
People should not be replaced by technology, but should be empowered by technology. In consumer oriented industries such as insurance, human contact remains crucial.
Increasing use of artificial intelligence in the insurance industry.
You may be thinking, the artificial intelligence of the insurance industry… really? Of course, historically, this industry has not been known for technological innovation, but as Bob Dylan sang, times are changing. Currently, 21% of insurance companies report that they are currently preparing their employees to adopt AI based systems. AI has revolutionized the insurance industry, which was once known for time-consuming and inefficient manual tasks.
The automation revolution has proven beneficial in helping insurance companies grow, save money, reduce fraud, and improve efficiency. However, excessive reliance on technology and the complete elimination of human risks from the insurance process can be harmful.
The fact is that only humans can understand the true needs of customers and the emotions behind every sale. Many areas of the insurance industry actually benefit from man-machine cooperation.
Four insurance industries benefit from AI, but still require manual intervention.
1. Cheating
Technology helped us prevent fraud before the insurance industry became a bigger problem. Artificial intelligence provides fraud detection systems that can remember patterns and alert users of suspicious activity. For insurance companies that handle sensitive data, additional security levels can help build trust with customers.
However, although systems provided by artificial intelligence can warn users of fraudulent activities, they do not actually capture fraudulent behavior. This character still belongs to humans. Once the system sends a signal of suspicion of fraud, individuals must still take action based on this knowledge to effectively prevent fraud and determine whether such activities are indeed fraudulent. The system operator can then feed back the knowledge of this attempted fraud to the system provided by artificial intelligence in order to improve its accuracy the next time a suspicious situation occurs.
2. Handling claims
The claims processing process includes heavy, low value tasks that are still being performed manually in many cases. This not only wastes employees’ time, but also leads to human errors and additional costs. For these reasons, insurance companies can and should use more technology to resolve claims faster and more accurately, and reduce their costs.
In an increasingly automated world, the personal interactions that customers most need can play a differentiated role. The customer experience during the claims process is crucial to the maintenance and growth of insurance companies.
Although the technology provided by artificial intelligence should be used to help insurance company employees reduce time-consuming tasks, it should not completely replace the humanized aspects of the claim processing process. Instead, technology will provide professionals with the tools they need to accelerate complaint resolution, giving them more time to establish relationships with customers.
3. Introduction to the manufacturer
The insurance industry is currently facing a talent crisis, which makes it difficult for companies to find and retain outstanding manufacturers. As recruitment competition becomes increasingly fierce, agents with outdated manufacturer recommendation processes may lose talent to competitors who can provide a more effective experience.
If your manufacturer’s recommended methods are full of closed data, disconnected processes, and compliance errors, then it may be time to update them. Artificial intelligence can be a powerful tool in the referral process, especially in the areas of paperwork, setting up, and training new employees.
Although technology can help attract new manufacturers and help them sell faster, it will never replace the sincere human welcome to the company. In this regard, human resources are all about people. Eliminating human factors completely from the referral process is not the best way to show new employees how excited you are about incorporating them into the team.
4. Communication with customers
In the early stage of the COVID-19 pandemic, companies in all industries were favored because they learned to adapt to the new all digital, non-contact operation mode. Nearly three years have passed, and many customers now want companies to provide digital alternatives or complements to their services.
Today, customers communicate through email, video calls, sending forms, and even text. AI driven chat boxes are a simple way for customers to quickly obtain answers. Online communication makes it easy to send and receive information anytime, anywhere.
Admittedly, AI has improved the customer experience, but it has missed out on one big area: human connectivity. Insurance clients still want and need professional guidance from independent agents. No two customers are exactly the same, and a real person is needed to fully understand the personal needs of each insurance buyer.
Create space for cooperation between people and machines
The insurance industry is in a unique position. Insurance professionals have the opportunity to combine the best technology with the best technology to provide customers with faster and more accurate services.
Just as rejecting technology can limit the development of agents, so can removing people from the equation. Only those companies that seek to enable their employees to leverage technology to provide them with the benefits can provide the efficient and personalized services that customers want.
