What exactly is insurTECH? AI and ML are a part of the “tech” that has to do with the highly used term that’s changing the insurance industry. Why is insurance involved in this? Let’s talk about how machine learning and artificial intelligence are actually involved in this.
Incumbent firms are looking to improve their customer experience and their antiquated processes. AI needs to be applied with caution, but when applied the right way, it can significantly reduce costs, reduce operational lag and redundancy, and target new markets when looking to enter new areas. In general it increases efficiency.
AI hasn’t yet been used optimally in the insurance space. Some of the areas it can be leveraged are in the fraud arena, cx, claims processing, policy distribution, and much more. The pandemic sparked innovation that forced far large firms to try new things. Technology hasn’t been entirely embraced at this point but will need to be for large firms to remain competitive.
The industry is certainly driving in a new direction, hopefully one that increases transparency for the consumer and a more efficient one for providers.
If you want to learn more about how Insurtech is driving solutions to the tech world, check out our Insuretech Acceleration Drivers series.