Artificial intelligence is helping insurers deal with growing demand by eliminating manual and manual work from their plates. With recommendations for independent claims payments and fraud avoidance, AI handles low-value, high-volume claims that are frequent bottlenecks in claims processing. (photo: Shapecharge/iStock)Increasingly sophisticated plans, inflation and a looming recession have made 2022 a difficult year for insurers – and we expect these challenges will only continue to shape the industry this year. However, insurance companies that focus on the future and take advantage of AI solutions are adapting well in today’s changing environment.
With impactful options for fraud detection and claims automation for underwriting, AI helps leading insurers maintain customer share and ensure profitability in this challenging business environment.
AI technology will be the driving force behind insurers’ success in 2023 – ensuring their continued survival amid ongoing industry pressures.
The state of the insurance industry in 2023
The industry will face increasing challenges as we enter a recession. We know Fraud rises in times of uncertainty. Individuals under pressure from the harsh economic climate may try to game the system to increase their income – and similarly organized fraudsters will see the recession as an opportunity to profit from a variety of schemes.
This challenge is further complicated by the level of sophistication in fraud strategies today. With deep fakes and images generated by artificial intelligence, it has become very difficult to distinguish between real and fake documents with the human eye alone.
Ultimately, Special Investigation Teams are hard-pressed and don’t have the resources available to manually review every claim. In fact, low-value, low-complexity claims are often written off by insurance companies. Today’s industry conditions only create more fraud, leaving overburdened insurers struggling to keep up. This is where AI technology becomes essential.
The importance of AI automation
We are at a moment in time where AI is the leading solution to growing workloads. Insurance companies face more work than ever before – and dealing with these challenges with more people is no longer feasible due to the costs involved in acquiring and hiring new employees. Intelligent automation is key.
Artificial intelligence is helping insurers deal with growing demand by eliminating manual and manual work from their plates. With recommendations for independent claims payments and fraud avoidance, AI handles low-value, high-volume claims that are frequent bottlenecks in claims processing. In contrast, insurers are empowered to focus only on higher-value, more complex, and strategically important claims—such as client success.
As consumers steadily expect more from their providers, consistently providing excellent customer service is key. Consumers are more price conscious than ever, and offering competitive prices is critical to winning customer loyalty during a recession.
Leveraging AI at the underwriting stage will help insurers correctly identify risks and appropriate premiums – improving loss ratios and enabling more competitive pricing. Engaging AI in claims processing also means meeting customers’ needs with faster claims payments.
Although insurers may be wary of shifting responsibilities to technology, AI is explainable Provides transparency in all aspects of decision-making – making technology acceptance much easier. With graded human review options at every stage, insurers can also feel confident that the system is working as expected.
It goes without saying that being an insurance company in today’s environment is challenging. As industry conditions generate increasing pressure, insurers have been placed in an increasingly difficult position. However, those who benefit from automation adapt well to the changing environment.
Gary Saarenvirta is the founder and CEO of Inc Daisy’s intelligence and an expert in independent artificial intelligence. Under Gary’s leadership, the company delivers interpretable decisions as a risk management service. Working on the Halo Effect, Gary spotted an opportunity to dramatically improve business decision-making through automated recommendations to insurance companies.
The opinions expressed are those of the author.
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