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ChatGPT, an open-source tool created by OpenAI to facilitate natural language processing, has thrust artificial intelligence into the cultural spotlight. More and more insurance companies are now exploring how they can integrate AI into their operations.
Helvetia, a Swiss insurance group, is the latest insurer to test ChatGPT for its new customer service. Zurich said last month that it was experimenting with ChatGPT to find out how artificial intelligence can help with tasks such as modelling, claims, and data mining.
Researchers have suggested that companies can begin to reap the benefits of artificial intelligence by focusing on customer service.
Lawrence Buckler, VP of sales at Sprout AI, which uses artificial intelligence to help speed up claims decisions, said that “there’s been a broad misunderstanding in the insurance industry that AI will replace people altogether.”
A new technology, ChatGPT, has generated buzz in the insurance industry. This technology doesn't replace human workers; it enables insurance professionals to provide a better customer experience.
Sprout AI, an insurtech with offices in London and Zurich, partnered with Zurich to produce a claims automation solution.
Putting Your Customers First: How AI Empowers Insurers to Foster a Customer-Centric Approach
leaders are encouraged by the industry's response to ChatGPT's popularity, citing a plethora of benefits AI can offer in claims, underwriting, and other insurance processes.
Artificial intelligence can sort through and analyse data in a way that humans cannot, freeing underwriters and claims handlers to spend more time on high-value tasks.
Roi Amir, CEO of Sprout AI, said: "Claims handlers typically manage one line of business, which is inflexible, and they are focused on the claim and not on the customer."
Claims handlers are increasingly expected to handle multiple lines of business. Automation can help make the claims process more customer-centric.
Sprout AI's CEO cites three trends in technology that are making waves in insurance:
The Internet of Things
Amir noted that the ability to train AI models and generate a level of prediction allows insurers to take better care of customers and make better risk management decisions.
“The opportunities are almost limitless with AI,” said Marshall.
Meanwhile, the Internet of Things (IoT) is enabling carriers to expand their ability to predict and prevent risk. Insurers are leveraging IoT capabilities in customer interactions and accelerating claims processing.
Telematics and water sensors create huge volumes of data that can help underwriters determine risk more accurately.
Bespoke and parameterized insurance solutions are becoming increasingly popular, thanks in large part to technology.
Amir said that if a company has the sensors, the data and artificial intelligence, it can tailor products to meet the needs of individual customers.
Insurance companies can more effectively innovate with the right technology, adapting it to the needs of individual customers and making the most of their resources.
By using AI, businesses can adapt to their customers' changing expectations
Artificial intelligence and chatbots could prove useful for insurance companies to meet the rapidly evolving demands of the market.
Sprout AI’s research found that one in five insurance consumers expected claims to be resolved within hours, while 100 percent of younger customers (aged 18-24) wanted resolution within a week.
An insurance industry study, which surveyed more than 1,000 people who had purchased an insurance policy in the past two years, found that the market was moving toward a digital-first approach.
“In addition to finding that a negative claim experience is a predictor for people cancelling their policies, we also found that a positive claim experience is a predictor for people renewing their policies,” Amir said.
62% of people who have had a positive experience with their insurance company are likely to renew their policy. However, 89% say that they are not likely to renew their policy after a negative experience. This presents a major opportunity for companies to keep customers happy by exceeding their expectations in the claims process.
For Buckler, insurers need to be more flexible in order to meet market expectations. Technology can help them do so.
Buckler said, “They need to be able to respond to customer demands and do so at scale. AI can help them do that.”