ARTIFICIAL INTELLIGENCE (AI) IN LIFE INSURANCE
Using AI in Life Insurance
Example uses of AI in the life insurance industry
Some use cases of AI in insurance include:
Automated Underwriting
AI streamlines underwriting processes by analyzing applicant data to assess risk and determine policy eligibility. For instance, a life insurance company may utilize AI algorithms to analyze applicant data, including medical records, lifestyle habits, and demographic information. The AI system can assess risk factors and determines policy eligibility within minutes, significantly speeding up the underwriting process. This automation allows the insurer to issue policies quickly and efficiently, improving customer satisfaction and reducing administrative costs.
Virtual Assistants
AI-powered virtual assistants provide real-time support to customers, addressing inquiries and guiding them through the insurance process. For example: A life insurance insurance provider may integrate a virtual assistant powered by AI on their website and mobile app which customers can interact with in natural language to get information about different insurance products, receive quotes, and initiate the application process. The virtual assistant uses AI algorithms to understand customer queries and provide accurate responses, enhancing the overall customer experience and reducing the need for human intervention in routine inquiries.
Anomaly Detection
AI technology assists life insurance companies in recognizing unusual patterns in data, such as uncommon customer behaviors or suspicious claims. Detecting these anomalies early on helps mitigate risks and make more accurate decisions. For example, a life insurance provider could utilize generative AI to identify irregularities in claims data, such as a significant rise in claims for a specific type of illness or mortality in a particular demographic. This enables the insurer to detect potential fraud or emerging risks in the life insurance landscape.
Customer Profiling
AI helps insurers create synthetic customer profiles for better segmentation and personalized marketing strategies. For instance, an insurer may leverage AI to analyze customer data from various sources, including demographic information, purchasing behavior, and online activity. By applying machine learning algorithms, the insurer identifies patterns and trends in customer behavior to create personalized profiles that help tailor marketing campaigns, recommend relevant insurance products, and provide targeted customer service
Harness the power of artificial intelligence or AI into your life insurance operations for optimized workflows, enhanced decision-making, and seamless and innovative journey for customers
How much does it cost for insurers to implement AI?
Different AI tools cost differently, and some of them have a "pay-per-use" model. The total cost would depend on the type of AI tool being used and the number of end-users. However, banks should also take into account the availability of base systems and their ability to connect to AI tools. This would also be an additional investment to those who do not have the necessary base systems in place.
