Artificial Intelligence (AI) is more a part of your everyday life than you probably realize. It’s everywhere and all around you, in fact, it might seem surprising that AI is also fast being integrated into modern-day car and home insurance.
The insurance industry knows the importance of staying up to date with technology and is investing in AI to make the process of getting premiums and claims quicker for customers.
If you’re wondering how AI is affecting car and home insurance, read on to find out more.
Artificial Intelligence in the insurance industry works in a few notable ways.
For example, some of the top ways AI affects home and car insurance are as follows:
Behavioural Premium Pricing
One of the most surprising things that AI is capable of is tracking your behaviour and offering a premium plan with rates suited to you as an individual. For example, if you are a very safe driver who never receives a speeding ticket or drives under the influence, AI can customize an insurance premium offer just for you.
AI is also able to make predictions of risk involved by tracking behavior and environmental situations. This leads us to the next point and way in AI affects insurance…
Customer and Coverage Personlization
How is this possible?
Smart tracking devices can be placed in a vehicle to track driving behavior and then create a risk profile for each client.
Using this data, an AI algorithm puts all this information together to make choosing your insurance an instant and easy process!
How does this work for home insurance?
Insurance companies can use smart technology such as location-based sensors in homes, offices, factories etc. These sensors are usually some kind of thermostat, camera or alarm that senses and records information from within a building.
For example, in your home, if you have a sensor that is able to detect a gas leak or water leak, it notifies you immediately and your insurance company can offer to organize an immediate repair so your home won’t suffer as much damage as it would’ve if you weren’t notified. Pretty clever, right?
Customized Claims Settlement
With artificial intelligence (AI) being faster and more successful in settling a claim, it’s no wonder that AI is definitely playing an important role in advancing insurance technology and aiding to ensure customer satisfaction.
If the customer is happy, the insurer keeps a happy loyal customer and is more likely to get a trustworthy and recommended reputation.
How can AI affect an insurance claim?
AI collects and stores a lot of customer information digitally and decreases the chances of fraud. An AI chatbot can scan a customer’s details, claim history, capture and review the damage and run the information through a fraud detection algorithm to ensure a hassle-free claim procedure before a claim payment is processed.
Many insurance brokers are very aware of the changes AI is bringing to the industry.
The best parts of this artificial intelligence and two of the most convincing points are the decreased chance of fraud and ability to customize a personlized premium to each customer.
AI has also been proven to be very accurate, fast and reliable. US company, Lemonade Insurance, promises no paperwork and 90 seconds to get an insurance premium via their app AI bot, Maya! That’s pretty quick. They also promise to pay out insurance claims within 3 minutes.
This level of accuracy and fast service is what can pave the way to revolutionize how customers receive insurance premium.