What: Artificial intelligence has the potential to providing savings of up to $390 billion in the insurance industry by 2030, according to a report by Autonomous NEXT quoted by Business Insider Intelligence (BII)
The insurance sector which has so far lagged behind others adopting AI, stands to benefit greatly in areas like front office, customer services, personalized products, claims management and others.
The
potential is the greatest in front office operations, estimated at
$168 billion in possible cost savings resulting from AI-enabled
innovation.
How:
AI could help the industry boost efficiency with products like
chatbots, automated questionnaires, personalized policies.
Insurance companies, currently at different stages on their AI journey, need to adopt a hybrid approach, combining digital technologies with human efforts to make sure they are “catering to all consumers”, BII report says. Only 2% of the respondents surveyed for the research could boast with full-scale implementation of digital technologies. Another 34% were at the ideation stage.
More precisely: The report outlines a number of strategies for insurers to implement AI and other digital solutions, including staff training, partnering with tech vendors and insuretech companies, and in-house insuretech initiatives.
The saving potential from back-office operations is estimated at $125 billion by 2030, optimizing services like risk and claims assessment, document sorting, etc. Other areas of increasing efficiency through AI include fraud detection, KYC/AML, compliance, etc.
Watch here an example of insurance claim processing automation
