The adoption of AI has increased exponentially across the business ecosystem in the past couple of years. Yet, Insurance still lags behind many industries due to the nature of its business. However, the ease of convenience that has come with AI implementations has made it indispensable to Insurers. So, where has the demand for the convenience come from? ‘Modern Insurance Customer’. The millennials today demand 24×7 service at their fingertips. They are keener towards information provided on digital channels and more likely to use social media and texting for Insurance interactions. To suffice the needs and demands of the modern insurance customer, AI integration is needed.
Role of AI in Insurance
Currently, AI is playing a pivotal role in transforming Insurance processes such as Claims, Underwriting, Customer Service, Marketing, fraud detection etc. For example, AI chatbots are being used to handle customer service which has led to a significant reduction in cost and optimization of human resources. According to a report by Deloitte on Unraveling the Indian Consumer, India has the world’s largest millennial population of 440 million in the age group of 18-35 years. Internet users in the country are expected to increase from 432 million in 2016 to 647 million by 2021, taking internet penetration from 30 per cent in 2016 to 59 per cent in 2021.
AI-based technologies will be need