4 Ways AI is Empowering Insurers During COVID-19
Sonny Patel | May 11, 2020
Among the many and varied realizations stemming from the COVID-19 outbreak, perhaps one of the most eye-opening has been our need for a digitally connected world. Having flipped “business as usual” on its head, the pandemic has been one of the biggest disruptors we’ve experienced in decades. As such, it has exposed the need for a swift digital transformation—especially within the insurance space
We’ve been talking about how artificial intelligence (AI)-driven solutions are poised to drive innovation, streamline efficiencies, and uplevel the industry’s customer service capabilities for years. However, we have never needed the real-time solutions AI can deliver more than we do now. And this need will only continue to grow as our future “new normal” takes shape. While we can't say for certain what the long-term effects COVID-19 will have on the insurance industry, we do know the technological advances born from this moment will help empower and better prepare you and your team for what lies ahead. Here's how:
1. AI provides clarity around coverage.
Surprised to find out what is and isn’t covered under certain plans as they relate to COVID-19 outcomes, policyholders around the country are opting to sue insurance companies in an effort to recoup pandemic-related financial losses. The stakes are undoubtedly high for American businesses and individuals, but the insurance industry isn’t immune to the fiscal fallout, either.
In the commercial sector, where business-interruption policies mainly cover physical damage and often exclude large-scale payouts for wars or pandemics, the American Property Casualty Insurance Association estimates that costs could reach well into the billions. Add on to that just the baseline number of claims that require processing, and carriers are facing an incredible industry backlog.
One way to alleviate these massive pain points is to leverage AI-driven solutions to increase efficiency. Through its machine-learning capabilities, this technology can perform thousands of judgment-intensive tasks simultaneously. Having the ability to review and compare coverages between old and new products to address and clarify coverage issues at record speed has never been more critical.
2. AI helps insurers to connect with policyholders and make smarter decisions.
There is a lot we don’t know yet about what the future holds. But it’s probably safe to assume that in-person interactions won’t return to what’s considered normal for some time. That’s why insurance companies need to ramp-up their digital communication capabilities—now.
Self-service portals, mobile apps, and AI-powered chatbots keep businesses and policyholders connected by making it easier for customers to ask questions and purchase insurance. Technology provides 24/7 support to clients that are in need. It automates claims fraud protection and assists with everything from filing claims to calculating payouts.
Technology can even aid underwriters in gathering more information to better assess an individual’s risk factors, helping make better-informed policy decisions. In the case of the car insurance sector, for example, carriers are using telematics like GPS and navigation systems to collect and analyze data on safe or hazardous driving habits, and even reconstructing accident scenes to better understand the chain of events that led to the crash. All of these efforts result in faster, more efficient claims processing, as well as freeing up your team to address more complex issues—a capability proving particularly important amidst the outbreak.
3. AI can improve internal operations, especially for remote work.
Once considered a job perk, remote work has been transformed by COVID-19 into an operational necessity—quite possibly changing the dynamics of the American workforce altogether, according to a recent report from CNBC. This shift further underlines the importance of a digital transformation within the insurance industry. By leveraging technology to carry out tasks that otherwise required people to accomplish, companies can execute their services faster and more securely.
For example, processing inbound documents is typically an arduous assignment that requires a lot of time and manpower. Digital delivery of policy dec sets, statements and related correspondence, coupled with online payment solutions, negates the need for onsite operations and decreases physical handling of paperwork—a move that not only saves your company time and money, but also keeps employees safe during this global health crisis.
4. AI can protect against inevitable cyber risk.
This massive shift to remote work environments increases reliance on digital interaction and subsequently exposes companies to a higher level of cyber-risk. Unfortunately, cybercriminals see COVID-19 as an opportunity. Knowing most healthcare companies’ staff and resources are stretched to their limits, they’ve seriously upped the ante on network hacking and fraud.
But insurtech companies like Corvus Insurance are taking note and responding to this threat with solutions that provide cyber-risk analysis and reports for businesses on the frontlines of the healthcare response. Using data science and their proprietary software, Corvus is offering free IT security scans to score a business’ cyber-security competencies in eight key areas.
Similarly, AI-powered platforms are highly effective at detecting and preventing deception for the insurance sector. For example, machine-learning algorithms can spot abnormalities in claims data and flag it as potential insurance claim fraud. These tools can even identify false information customers may be using to try and land a lower premium or higher claim payout, while also deploying security technologies to protect customer and internal company data.
There is no going back to the way things were before the COVID-19. The world has changed and therefore industries have changed. Businesses looking to weather the storm—and maybe even come out on top in the end—need to adapt in order to meet the needs of an ever-evolving digital environment.
Sonny Patel is the founder and CEO of Insurmi, an AI-based engagement platform for insurance carriers. Insurmi is used by a number of top-tier global insurance carriers to easily generate new business online, streamline customer claims, and deliver excellent customer service through conversational AI.
- Big Data and Insurtech: A Carrier Perspective
- Traditional Insurers Need Open Ecosystems, Partnerships to Remain Competitive, CapGemini Report Finds
- Electronic Chat with John C. Siegman
- 4 Ways AI is Empowering Insurers During COVID-19
- 6 Big Changes to Insurance from the COVID-19 Crisis
- Electronic Chat with Christopher Ewing
- Independent Agency Staff Morale High During COVID-19, New Survey Finds
- Electronic Chat with Brad Epker
- Tapping AI to Improve Policyholder Experience
- Electronic Chat with Manisha Bhargava
- ITA Pro Magazine, March/April 2020
- COVID-19 a Game Changer for Workers’ Comp
- Electronic Chat with Steve Comer
- COVID-19 Pandemic Forces Cancellation of ITA LIVE 2020
- Leveraging Digital Resources in the Time of COVID-19
- Electronic Chat with Robert Hartwig on COVID-19 and Insurance
- Celent Study: Most Small Businesses Still Unclear on Importance of Cyber Insurance
- The January/February 2020 ITA Pro is here!
- Deloitte: New C-Suite Roles Mean More Opportunities for Women
- Electronic Chat with Pankaj Parashar
- Electronic Chat with Tara Kelly
- Electronic Chat with Chuck Wilson
- ITA, InsNerds Collaborate to Enhance ITA LIVE 2020 Content and Coverage
- How SMBs Can Compete in Digital Ecosystems in the 2020s
- 4 Ways Insurance Can Prepare for New Data Privacy Laws
- Brewer Lane Ventures Launches and Hires Insurtech Vet Martha Notaras as Managing Partner
- 2020 GIA Cohort Launches on January 14
- The November/December 2019 ITA Pro is here!
- Electronic Chat with Joshua Snead
- Electronic Chat with Wendy Aarons-Corman
- Simplifying the Move to a Third-party Print Provider
- Take a Business-Driven Approach to Continuous Improvement for Core Systems and Processes
- Electronic Chat with Ron Glozman
- Guidewire’s Data Guru Mike Byam on How Insurers are Using Internal and Third-Party Data
- Electronic Chat with Russ Bostick
- Electronic Chat with Rock Schindler
- Electronic Chat with John Siegman
- Electronic Chat with Martin Burlingame
- Insurtech Landscape 2019: Top 5 Takeaways
- Grinnell Mutual Tackles Massive Transformation -- in Stride
- A Candid Conversation with Paul Mang
- SageSure Insurance Managers Improved Competitiveness by Consolidating Payments to a Single Digital Platform
- Digital Does Matter in Insurance-- And Insurers are Missing the Mark
- The 22nd-Century Insurer: Taking a Cloud-First IT Approach
- The September/October 2019 issue of ITA PRO magazine is now available in digital format here:
- ITA Pro Magazine May/June 2019
- Spotlight on the 2019 IASA Conference
- ValueMomentum Selects Erie as Site of Regional Development Center
- Capgemini and Majesco Become Alliance Partners
- Electronic Chat with Dr. Dan Shoham
- Electronic Chat with Todd Greenbaum
- Martha Notaras: The “Outsider” with an Amazing Inside View
- Electronic Chat with Larissa Tosch
- Martha Notaras Will Join ITA LIVE 2019 as a Keynote Speaker
- Five Things to Consider When Evaluating Your Cyber Risk
- ITA Pro Magazine, January/February 2019
- Synergy Between Insurers' IT and Analytics Teams Key to Operationalizing Insights, Says Novarica
- Major Ransomware Attack Could Hit U.S. with $89B In Economic Damages
- ITA Announces 1st of Three Keynote Speakers at ITA LIVE 2019
- Electronic Chat with Jeroen Morrenhof
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- IMS Announces New Industry Partnership with Conversational AI Platform Provider, SmarTek21
- PLNAR Announces Allan C. Robinson III Has Joined the Board of Directors
- ISB Global Services Joins Guidewire PartnerConnect Solution Alliance Program; Publishes Ready-for-Guidewire Integration
- DataCubes Announces Company Name Change to Convr
- ClarionDoor Unveils New MGA Hub
- "Summer of Accelerate" to Deliver Continuing Education to Independent Agencies
- FRISS Partners with eviid to Help Prevent Fraud
- Messagepoint Launches Rationalizer
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2020
ITA LIVE 2020 –SAVE THE DATE!
April 5th – 7th, 2020
The Diplomat Resort
Become a member today to receive updates – www.itapro.org/MR
BLOGS AND COLUMNS
Without a very strong focus on data as a strategic and vital corporate asset, insurers will struggle to keep up with the necessary changes in the “new... READ MORE
How does a small- to medium-sized business (SMB) begin attempting to understand the digital ecosystem customer... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE