National Insurance Awareness Day: How is AI revolutionizing the insurance sector? Experts weigh in

Insurance has always been an essential aspect of our lives, providing us with financial protection and peace of mind. However, with the advent of artificial intelligence (AI), the insurance sector has witnessed a significant transformation, benefiting both insurers and consumers alike.

As we celebrate Insurance Awareness Day, it is important to recognize the profound impact that AI is having on the industry and how it is revolutionizing the way insurance services are delivered to consumers.

AI is revolutionizing the insurance sector for consumers by transforming the operations of insurance companies, offering improved services, faster claims processing, and enhanced awareness.

AI-powered assistants understand customer preferences, simplifying decision-making and ensuring adequate protection. Claims experience is significantly improved through automation, reducing settlement time and fraud.

To gain insights into the real-time transformation of the insurance sector through AI, we sought the perspectives of some industry experts.

Tabrej Khan, CTO, Anand Rathi Insurance Brokers Pvt Ltd

Artificial intelligence is revolutionizing the insurance sector for consumers. It transforms the operations of insurance companies, offering improved services, faster claims processing, and enhanced awareness. AI-powered assistants understand customer preferences, simplifying decision-making and ensuring adequate protection.

Additionally, claims experience is significantly improved through automation, reducing settlement time and fraud. Advanced image recognition and natural language processing analyze and verify information, enabling quicker issuance of policies. AI algorithms detect fraudulent claims and expedite legitimate ones using big data and telematics.

Furthermore, AI automates customer onboarding, contactless interactions, lead generation, and grievance handling. It provides value-added services, guidance on health maintenance, and alerts for loss prevention.

AI also enhances data security, detecting breaches, identifying suspicious activities, and implementing encryption methods. It detects cyber threats in real-time and assists in user authentication. Overall, it revolutionizes insurance, benefiting consumers and ensuring a secure and efficient insurance experience.

Abhishek Gupta, Chief Marketing & Customer Experience Officer, Edelweiss Tokio Life Insurance

Over the years Al has brought in huge impact on the insurance sector. It has positively affected all aspects of business, from distribution to underwriting to claims, fraud detection, personalising and customising products and customer experience.

At Edelweiss Tokio Life Insurance, we have effectively used AI to a certain degree. It has helped us streamline and fasten customer onboarding processes, in risk management and helped us redefine and simplify insurance advisory which enables us to provide customer delight.

Parthanil Ghosh, President, Retail Business, HDFC ERGO General Insurance Company Limited

Artificial intelligence is gradually making inroads into every industry, and the insurance sector is no exception. Today, insurers are leveraging AI to deliver efficient and personalized customer-centric services, thus democratizing insurance and bringing in more flexibility and transparency into the industry.

At HDFC ERGO, we have been a forerunner in using innovative solutions like AI and machine learning to meet the diverse needs of our customers and reach the last mile, thus propelling financial inclusion in the country. We have been leveraging AI to deliver hyper-personalized customer issue resolution, mitigate fraud, improve efficiencies at various stages of customer onboarding and claims resolution, and reduce TATs.

We have established deep-set algorithms in our neural networks, which ensure quick resolution of customers' queries via various bots, leading to an enhanced customer experience. We believe that AI has the capability to unlock the huge untapped potential of the insurance sector and thereby help in realizing the regulator's vision of 'Insurance for All by 2047.'

Paras Mehta, Director of Engineering, Bimaplan

Artificial Intelligence has had a profound impact on the insurance industry, particularly in enhancing the experience of insurance consumers. One notable area where AI is proving to be beneficial is in facilitating instant policy issuance and real-time claim settlement. Insurers are leveraging AI algorithms to assess risks more effectively and manage consumer risk profiles based on historical data.

The epicentre of this tech-driven shift is the deep learning models running on the convolutional neural network of data connected to our everyday devices (IOT) resulting in the “pay as you live” insurance premiums benefitting both the consumer and the insurance companies.

Mr. Ajay Shah, Head – Distribution, Care Health Insurance

Artificial intelligence is reshaping the insurance industry and rendering a range of advantages to consumers. With inventive algorithms and data analytics, AI is revolutionizing the way insurers engage with customers, assess risks, give personalised services and settle claims. This transformative technology aids insurers to create insurance policies that precisely align with individual needs.

With comprehensive data analysis that encompasses factors like demographics, lifestyle choices & purchasing behaviour of the consumer, AI algorithms accurately evaluate risks and offer personalized coverage options. Additionally, AI streamlines claim processing by automating various tasks like analysing claim forms and verifying information using image recognition technology.

AI-powered virtual assistants and chatbots are also playing a crucial role in enhancing customer service for the insurance sector. These intelligent systems proficiently address routine inquiries, furnish policy details and guide customers through the claims procedure. Using AI algorithms, one can track human movement & vitals using wearable devices or health-tracking technologies, thus empowering insurers to identify and reward individuals who demonstrate health-positive behaviour.

Harish Ramarao, Senior Vice President – Product Engineering, ACKO

“AI algorithms play a crucial role in creating risk profiles, while telematics and integration with Internet of Things (IoT) devices allow for more detailed and sophisticated risk identification. AI in insurance when it uses behavioral data, helps in learning patterns of customer behavior and providing them personalised covers and pricing. Insurers can further analyse massive amounts of data using AI algorithms to assess risk factors and tailor insurance coverage.”

While AI is undoubtedly revolutionizing the insurance sector, it is important to acknowledge that ethical considerations and data privacy are paramount. Insurers must ensure that consumer data is protected and used responsibly, adhering to relevant regulations and best practices.

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