AI is fast becoming a useful and time-saving tool for many industries. One such example is how AI for insurance and how this has taken the sector by storm.
With customer demands at an all-time high and the pressure to deliver rising, insurance professionals are turning to AI tools for much-needed support.
However, where does a company draw the line between heightened efficiency and sustaining that all-important human element in their service? Let’s explore how to benefit from one without losing the other.
The ways AI can help insurance professionals
Rather than viewing AI as a filler for skills gaps, insurance companies should see it as a support system for their human employees and existing workflows. Here are the most common ways AI is used in the insurance sector to benefit both businesses and customers.
Monotonous tasks are no more
Admin and data entry are essential in this line of work, but it is a serious drain on employee resources. Historically, this was part of an employee’s daily tasks.
However, with the advent of AI, repetitive manual processes can be done in an instant. Automating the sending of claims documents and reminders frees insurance professionals to focus on more complex matters and problem-solving tasks. This gives workers back a sense of job satisfaction, helping with employee retention and growth.
Round-the-clock customer service
A few decades ago, customer service hotlines and postal addresses were all we had to contact businesses. Snail mail correspondence obviously takes time and elongates the entire claims process. A small question would take weeks to answer.
Then, there are hotlines. These provided a faster response, but only within a set time frame. You would need to phone during working hours to come to a solution.
Now, with the creation of AI chatbots, simple questions can be answered without speaking to a human employee. Not only does this mean customers receive 24-hour service, but it also frees up time for employees to handle more demanding queries.
Improved fraud detection and risk assessment
Not every case is genuine. Insurance companies are at risk of fraudulent activity from so-called customers. Then there’s the heightened threat of cybercrime. In order to protect themselves and their customers’ data, a solid fraud detection and risk assessment protocol needs to be put in place.
AI can be used to identify any anomalies in data quickly and more efficiently than the human eye. Scouring data for suspicious signs can be one of those monotonous tasks that have a high chance of human error. By implementing AI, the risk of a threat slipping through the system can be minimized.
Personalizing the customer experience
Customers want to feel understood and seen. Not just another number on the finance department’s spreadsheet. That’s why personalizing the customer experience matters.
It can be achieved in the smallest of ways, such as through emails that target those specific customers’ pain points. Maybe they are animal lovers interested in pet insurance and want content that speaks to them? Understanding the customer’s lifestyle and preferences, and then using automation to personalize their experience with your insurance company, will win them over.
The human touch still matters
With all this talk of the benefits of AI in the insurance sector, the human touch shouldn’t be overlooked. Selling insurance and processing claims requires a great deal of trust between the insurance professional and the client. Failing to build trust is a sure-fire way to lose business.
Customers may need further convincing or reassurance over a certain service. Or they may be making an insurance claim after experiencing a hardship or loss. This is not the job for AI. An empathetic, understanding human insurance professional needs to step in and take over.
How to strike the right balance
There’s a right time and place for AI. By using AI intuitively, insurance professionals can lighten their own workloads, regain that all-important job satisfaction, whilst also delivering on their promises to customers. It’s essential to strike a balance between the two.
For example, AI chatbots sift through the easily answerable questions, then human employees take the complex queries. Some clients may be satisfied with a customer service consisting of AI-processed forms, automated emails, and chatbots. Whilst others will demand more human interaction.
Striking the right balance is all about knowing your customers first and foremost and making an informed judgment from that.
Finally, a balance is achieved through an understanding between AI technology and the user. Training employees on how to use AI effectively in their roles is essential. Skipping this step leads to over-reliance on AI or using this tool in the wrong circumstances.
AI is a useful tool when you know how to use it correctly, and to the benefit of both your business and customers, too.
This content is provided for informational purposes only and is not a substitute for professional advice. AFP editorial staff were not involved in the creation of this content.
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