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6 AI Applications that are transforming Insurance Now

With an insurance boom in the Asia-Pacific (APAC) region, Insurers are competing for developing superior technological capabilities in order to meet their customers’ demands better. Therefore, to stand out from the competition, companies are regularly adapting new tactics to ace the game, and AI is one of them.

According to a study, more than 80 per cent of insurance CEOs mentioned that AI was already a part of their business model or would be within the next three years.

AI has honed the way increasing data, computing capabilities, and evolving consumer expectations are handled and executed by making processes more automated and efficient. The role of AI has evolved over time to fulfil complex business requirements. In this blog, we will cover six significant areas in which AI is transforming insurance companies, but before proceeding, let’s take a look at how AI trends within Insurance.

Trends of AI in Insurance (50-100 Words)

Google Trends, reveals a constant uptick in AI-powered insurance applications acquired by the insurers between 2015-2020.

Google Trends, reveals a constant uptick in AI-powered insurance applications acquired by the insurers between 2015-2020. 

However, the impact of COVID-19 in 2020 has slowed this pace down a little. This is because insurer spending on AI systems had taken a back seat to mitigate other more pressing challenges that required allocation of budgets to those priorities. But in the Post- COVID world, it is expected that AI and insurance have a long way to go together.

How AI is Transforming the Insurance Industry 

Artificial Intelligence has driven positive impacts on many different business models, and insurance is no exception. Also, it works much better with AI because insurers have a treasure-trove of data, which is the primary fuel to drive successful results with AI.

Among all changes AI brought, the six major ones are mentioned below:

  1. Claims acceleration

AI is applied to automate or accelerate the process of claim. Claims processing includes a lot of tasks like reviewing, investigating, making adjustments and remittance or denying. If solely done by humans, the following issues might occur:

  • Inconsistent processing and more probability of errors
  • Varying data formats and time-taking management 
  • Staff training and process updating sessions

These processes can be accelerated with new Artificial Intelligence capabilities, leading to claims being paid in hours or days rather than weeks. However, likely, this kind of automation for claims acceleration will only work in low impact claims. For complicated requests, AI, along with human interaction, will be able to achieve the goal.

  1. Price sophistication using GLM

Insurers widely use AI techniques like GLMs (Generalised Linear Models) for price optimisation in tar and life assurance fields. Pricing optimisation allows companies to understand their customers better and enable them to balance capacity with demand and drive better conversion rates. 

Moreover, adding non-traditional data like unstructured data and written reports can also augment price optimisation and make better decisions.

  1. Using IoT 

IoT (Internet of Things) is one of the most significant AI opportunities within the insurance industry. These devices are getting a lot of traction from the users and are beneficial for insurance companies to assess customer risk profiles. Several IoT smart home devices are being used to alert customers when there are issues within their home or commercial property, for example, leak/moisture sensors. Using them, along with AI, helps insurance companies to offer better services.

For example, predictive analytics models could be built using the datasets of customers using leak detection sensors to predict which customers might be vulnerable to a leak. This prediction will help companies to send out repairers to replace faulty pipes before they burst to lead to claims.

  1. Personalised Services and Recommendations

Personalised services help customers to match their needs and lifestyle. Artificial Intelligence creates personalised services using customers’ product ratings, demographic data, preferences, interaction, behaviour, attitude, lifestyle details, interests, and hobbies. This helps companies in selling the right product to customers and target the correct audience. An Accenture study suggests that 80% of insurance customers are looking for more personalised experiences, and AI helps companies do so. 

Moreover, with the recommendations based on the customer’s behaviour or past purchases, AI shapes the way things are recommended to the customers. For example, a customer looking for health insurance would be displayed with offers on health insurance. Also, this helps in sending meaningful marketing messages.

  1. Eliminating underwriting risks

Humans solely did the process of underwriting. Therefore, the probability of getting errors was quite more and also it was a time-consuming process. But AI technologies have worked their way into this area of insurance and made the process quick and efficient without manual efforts.

  1. Affective computing (Emotional AI)

Also known as emotion AI, Affective computing is used to understand customers better and make decisions according to their mental/emotional states. It identifies, processes, and simulates human feelings and emotions and behaves and replies based on the same. This technology is shaping the Insurance industry in the following ways:

  • Fraud detection: Voice analytics is used to understand if a customer is lying while submitting a claim. AI makes this analysis based on various previous data sets and customer behaviours.
  • Intelligent call management: Customers running short on time or are angry are directed to more experienced call agents to ensure their satisfaction. 

New Adaptations

This ever-changing digital era is continuously adopting new technology. Therefore, another critical element to understanding the industry transformation is comparatively learning about the existing techniques and the new ones. 

The chart mentioned below contains some generic high-level use cases that many Insurance organisations are adopting. The abbreviations used are:

  • ML: Machine Learning
  • NLP: Natural Language Processing
  • SVM: Support Vector Machines
The chart contains some generic high-level use cases that many Insurance organisations are adopting.

Conclusion

So far, the blog must have helped you know how AI is transforming the Insurance industry in various ways. You can adapt to these modifications in your business model to stay ahead in the competition. However, it is worth mentioning that AI to an Insurance company could be beyond standard use cases and be viewed as a way to augment the role of data assets. There’s a lot to gain from the AI-first world for insurers, and also a lot to lose if AI is not embraced and well understood.

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What will ‘Behavioural Changes’ Mean for India’s Digital Health Future

We are in the middle of a global pandemic, facing a threat unlike one never seen before. COVID-19 has been a reason for global concern since it has negatively impacted economies, shut down workplaces, and forced cities into lockdowns.

But history also tells us  that times of uncertainty also foster innovation. The pandemic has forced consumers and businesses to rethink how they behave both physically and digitally. As per McKinsey, COVID-19 has speeded up the adoption of digital technologies.

India, which was on the cusp of a ‘digital health’ revolution, has now been forced to embrace innovation and emerging trends. The healthcare sector holds great promise since new-age technologies like telemedicine, robotics, artificial intelligence (AI), genomics, etc. are transforming healthcare services.

There have been unprecedented changes in consumer behaviour as well. People are now increasingly relying on using the internet to find clinical information or engage with healthcare professionals digitally. Moreover, online consultations, telemedicine, and e-pharmacies have seen a rise in popularity.

Companies will thus need to capitalize on the changing patterns of consumption and health-seeking behaviour.

This article focuses on how changing patient behaviour will affect India’s digital health future.

A growing Indian healthcare market

According to a report by Future Health Index, India is a leader in the adoption of digital health technology. As per India Brand Equity Foundation (IBEF), the Indian healthcare market is expected to grow at a compound annual growth rate of 22% to reach a valuation of USD 372 billion by 2022. This growth can be attributed to the following –

  • Growing health awareness
  • Aging population
  • Lifestyle-related diseases
  • Rising income levels
  • Growth of internet availability

The rise of digital health start-ups is also playing a role in the growth of the healthcare sector. Indian health tech startup landscape has now matured.

Over the last few years, telemedicine has emerged as a fast-growing sector in India. Prominent start-ups like Practo, mfine, and Lybrate have established themselves in the telehealth market. McKinsey estimates that India could save up to USD10 billion by 2025 by using telemedicine instead of in-person doctor appointments.

COVID-induced behavioural changes

The COVID-19 pandemic has brought about changes to patient behaviour. The fear of leaving homes to get treatment has led to the growth of virtual care and telemedicine. 

As per a report by Accenture, almost 70% of the patients canceled or postponed their treatments due to the COVID-19 pandemic. Technology, therefore, played a crucial role in helping patients continue their care. Healthcare providers were even able to improve the experience for patients by delivering them faster response time, personalized interactions, and the convenience of getting consultation from home.

The same report by Accenture highlights some key behavioural changes that are being observed in patients – 

  • Nearly half of the patients now get their treatment at their homes instead of visiting a clinic.
  • Almost 60% of patients want to continue using technology for communicating with healthcare providers.
  • About 41% of patients now use video conferencing to connect with their healthcare providers. Of these, for almost 70% of patients, it’s their first-time using video conferencing for healthcare.
  • Almost 44% of patients used new apps or devices during the pandemic to manage their health conditions.

All this highlights the need for healthcare providers to reimagine their patient engagement strategies in keeping with the changing patient behavior.

Future of digital health in India

New digital technologies and tools are making an impact across the healthcare sector. They hold great promise in improving the efficiency of healthcare services while delivering better patient care. Below are some of the technological developments that are expected to revolutionize the way we seek healthcare.

Telemedicine

About 68% of India’s population lives in rural areas where healthcare services are not usually up to the mark. This barrier can be overcome by telemedicine that offers an excellent way for patients to consult a doctor in a much shorter duration. Telemedicine can cut waiting times and allow patients to avoid traveling to a clinic or hospital. Some other benefits of telemedicine include –

  • Immediate access to specialist healthcare providers.
  • Cost-effectiveness.
  • Improved quality of care.
  • Convenience to the patients.
  • Improved patient engagement.

Internet of medical things (IoMT)

The rapid growth of IoMT devices is rapidly changing healthcare delivery by playing an important role in tracking and preventing chronic illnesses.

It not only helps eliminate the need for in-person medical visits but also helps reduce costs. Goldman Sachs estimates IoMT to save USD 300 billion annually for the healthcare industry. IoMT will benefit those patients the most who are unable to get access to quality healthcare due to remote location.

Big data in healthcare

There has been dramatic growth in the amount of medical and health data in the last few years. These massive datasets can be used to draw insights and opportunities for healthcare organizations. Analysis of healthcare data can help discover warning signs and create preventive plans.

The widespread adoption of IoT devices also makes it easier to monitor heart rate, blood pressure, etc. This can help in the early detection of diseases like hypertension, asthma, heart problems, etc.

Electronic medical records

Electronic medical records or EMRs help collect, digitalize patients’ information, and store it in a single place. EMRs store various types of medical data like medical history, prescriptions, drug allergies, etc. and allow doctors to make accurate disease prognosis in a much shorter time. Some other benefits of EMRs include – 

  • Effective medical decisions.
  • Easy data recovery.
  • Improved collaboration.
  • Portability.
  • Security of medical data.

Artificial intelligence

Artificial intelligence (AI) has a big role to play in improving healthcare since growing digitization leads to the availability of a large amount of health data. AI has the potential to transform everyday health management in the following ways –

  • Improved accessibility of healthcare services (for example – the AI-based mobile app Ada is available across 140 countries and makes it possible for anyone to have access to medical guidance).
  • Improved efficiency.
  • Accurate disease diagnosis.
  • Improved insights to reveal early disease risks (for example – a popular app Verily can forecast noncontagious and hereditary genetic diseases).
  • Time and cost savings.

mHealth

Mobile health or mHealth refers to the monitoring and sharing of health data via mobile technology like health tracking apps or wearables. 

mHealth apps can prove to be beneficial in increasing patient engagement, providing health education, and offering remote consultations to patients. It can also use the data from wearable devices to improve the quality of care. Some other benefits of mHealth include – 

  • Faster access to physicians.
  • Improved medication adherence.
  • Remote patient monitoring.
  • Increased medication reconciliation accuracy.
  • Improved coordination between healthcare providers and patients.

Conclusion

It’s quite clear that COVID-19 has significantly impacted patient behaviour. There has been a growing preference for telehealth and mHealth apps. But all of this has also compelled healthcare organizations to put in more effort in adapting to these behavioural changes. Healthcare providers are opting to rely more on new technologies to continue delivering patient care. A more affordable standard of high-quality care is in the works for India’s digital health future.

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