Artificial intelligence (AI) technologies can provide a golden opportunity to insurance carriers to improve their businesses and establish themselves.
Achieving operational efficiency and customer engagement would be a difficult task, according to Forrester Research, but many insurance companies would be able to achieve this if right guidance was provided.
In a blog post, co-authored by Forrester research associate Alyssa Danilow, it said insurance companies will have to consider several factors before investing in AI. These include how to manage risk exposure and fraud detection, understand the needs of customers, and how insurance products and services can deliver the experience expected by consumers.
AI technologies can help companies focus more on clients, enabling insurance carriers to become digital insurers. The technology can quickly sift through data and make more informed decisions on the recommended paths customers should take, or better tailor services to them.
However, he said it is important for companies to know what they need while choosing which AI technology to invest in. Those insurers that are planning on investing in AI technologies should examine what the company will most benefit from, and which technology will enable the company to reach its goals.
Businesses must assess which areas AI will benefit the most.
Despite AI not being widely used in the insurance industry currently, the research has identified 12 AI technologies and solutions using which insurers can improve operational efficiencies and offer better customer experience.
Insurers have earlier experimented experience-related AI technologies; operational AI technologies; experience-focused AI solutions; and operational AI solutions. Experience-related AI technologies such as virtual assistant, speech analytics and recommendation engines are being implemented in customer service and insurance product selection.
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Text analytics, advanced analytics, facial and image recognition, machine learning and natural language generation are being used to improve operational efficiencies, with facial recognition and machine learning being used primarily to mitigate the risk exposure of insurers.
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To provide a positive customer experience, insurers are using two experience-focused AI solutions that combine multiple AI technologies to create conversational solutions and industry pre-trained solutions.
Barnett said insurers are combining other AI technologies with machine learning to create deep learning solutions, which are currently being used for risk management.
