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4 WAYS AI IS RESHAPING THE INSURANCE INDUSTRY

INSURANCE INDUSTRY

Karlyn is a writer who specializes in the technology and insurance spaces

 

The technological revolution is changing everything around us, from the way we communicate to the way we purchase goods and services. It’s even changing the face of the insurance industry, by helping us get better, faster, more accurate coverage.

One of the biggest technological innovations in the insurance world today is artificial intelligence. While insurance startups are taking more and more advantage of artificial intelligence each day, this technology was actually created in the 1950s.

Today, AI is becoming an important tool in the insurance sector to help with risk management. Below, we walk through what artificial intelligence is and how it’s helping the insurance industry improve their processes.

 

What is Artificial Intelligence?

Artificial intelligence is technology that helps computers to think rationally and solve problems similar to humans. As computers can hold more information now than ever before, critical thinking becomes easier to teach machines how to do. Today, “big data” processes and stores more information than any one person ever could.

Karlyn

Machine learning and deep learning are two of the biggest sectors in artificial intelligence today. Machine learning allows computers to identify and analyze continuous trends, which in turn helps them better predict outcomes. A car insurance company could use machine learning to predict both driving patterns and outcomes for specific customers or customer bases.

Deep learning, on the other hand, teaches computers to lead by example. Training computers to perform tasks utilizing artificial neural networks allows computers to complete tasks that humans would normally have to do, which can cut down on time spent on administrative tasks.

 

Artificial Intelligence and the Insurance Industry

Since AI aims to make more trusted and accurate decisions, free from human error, many industries are utilizing the technology in big ways. The insurance sector in particular is harnessing the power of AI to stand out from the competition and revolutionize the way consumers purchase insurance.

You can learn about some of the ways the insurance industry is using AI below:

  1. Improving the Speed of the Claims Process
    If you’ve ever filed an insurance claim, you know how much time it can take from start to finish. Many customers dread having to contact an agent and walk through the dozens of questions needed in order to complete the claim, but AI hopes to change this process by speeding it up and making it more accurate. Instant responses via chat boxes allow customers to get information directly after an accident.
  2. Preventing Fraud and Blocking Hacking
    According to the FBI, approximately $40 billion is stolen from insurance companies through fraud each year. These dollars lost impact both business efficiency and consumer costs. Companies that utilize artificial intelligence can identify and track irregular behaviors to prevent hacks and other fraud before it even occurs.
  3. Adding Personalization to Solutions
    AI also allows insurance companies to personalize their solutions, since no two accidents or incidents are ever the same. Taking a personalized approach allows companies to tailor their services from person-to-person, which can help save them costs and improve customer experience. Through a simple AI application over the phone, for example, an insurance company could get permission to track someone’s driving and thus use that data to adjust their rate. If they are a safer driver, their accident risk is lower, so the insurance company could provide them with a better rate.
  4. Offering 24/7 Accessibility for Customers
    One of the best features artificial intelligence offers is 24/7 access without the need for a 24/7 staff. Companies can save on staffing while also providing around-the-clock value to their consumers. This is especially important given the liability aspect of the insurance industry, when accidents can happen anytime and people need access to information fast. Rather than having to pick up the phone and get an agent on the line, customers can use a chatbox to help them through the process.

Insurance companies can maximize their efficiency by utilizing artificial intelligence. Not only does AI help make insurance safer from hacking and fraud, it also provides more accurate and reliable data for claims processing. All of these features help insurance companies save big. Further, customers feel safer and more protected.

To learn more about how AI is transforming insurance, and the startups that are helping to lead the movement, check out the infographic below!

 

Technology

ARTIFICIAL INTELLIGENCE AND FUTURE OF TECHNOLOGY

Ashish Jain, CEO, Future FX

 

Artificial Intelligence refers to machine intelligence that is programmed to think like humans and mimic their actions. For example while writing this article, I am not actually typing it but dictating it out using the microphone and the text is being typed by Microsoft Word itself.

The ideal characteristic of artificial intelligence is to rationalize and take actions to achieve a specified goal.

As technology advances the previous methods of artificial intelligence are taken for granted as new necessities are conjured. For example the computer was one of the most iconic invention of artificial intelligence but now it is considered as mandatory.

Artificial intelligence is continuously evolving and has to evolve. Machines are made in a way that they understand mathematics, linguistic, psychology and many more other terms that are related to human mind.

Artificial intelligence is used in many sectors for example the medical sector. It is used to test drugs and medicines.

We have applications and games which includes chess where the computer plays against us this is also a feature of artificial intelligence. Similarly self driving cars are also an invention of artificial intelligence. These have to be designed very intelligently.

This can also be used in the financial industry to trace and flag activities in banking and finance such as unusual debit card activity or usage and large deposits.

This also helps to estimate the demand supply and prices of the estimates and that makes trading easier.

Earlier, we had to pay a visit to bank on order to deposit a cheque. Then we updated to ATM/Debit Cards and now you can be identified by your retina. Many different sectors have also adapted this method to make actions it more convenient and safe.

Some more examples of artificial intelligence are iPhone’s Siri, Google’s Smart Assistant, Amazon’s Alexa, Google Maps, Ride- sharing apps like Uber and Ola, diseases mapping, Automated investing, virtual travel booking, social media monitoring, inter team chat tool, NLP tools, etc.

Artificial intelligence is all around us and playing an active role in our daily lives. Every time we open our Facebook newsfeed, do a Google search, get a product recommendation from Amazon or book a trip online, we are using it immensely.

In the coming years, computers might match or even exceed human intelligence and capabilities on tasks such as decision- making, reasoning and learning, analytics and pattern recognition, visual acuity, speech recognition and language translation.

Smart systems in commodities, vehicles, day to day use objects will save time and effort offering us a more customized and comfortable future.

It will help the medical sector hugely in upgrading the medicines and treatments, inventing new ones which haven’t been found yet and making everyone’s lives more safer and healthier. A large number of data can be collected from person to person about their health and nutrition and thus changes can be made in the lifestyle.

Artificial intelligence will bring changes in the educational system making it more revolutionary and advanced.

Overall, every factor has advantages and disadvantages and artificial intelligence has it’s lot too. Considering all the advantages artificial intelligence will also affect the human decision making power, analyzing and rational thinking, lifestyle etc. It will make people lazier and will affect their creativity. It can also lead to unemployment due to increase in usage of machines.

Like everything has a balance, artificial intelligence needs to be balanced too so that we can enjoy it’s benefits without suffering the negatives.

 

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Finance

COULD COVID-19 BE THE CATALYST FOR DIGITAL TRANSFORMATION IN FINANCE?

AI

By Simon Bull, Sales Operations & Business Development Manager at Aqilla

 

We are all now living in a new ‘normal’ where working from home is no longer a luxurious ‘perk’ of the job, but an essential. In the case of many organisations, the transition to flexible, remote working was successful, albeit slightly bumpy. But there is one department that has found it more challenging to transition to the required standards of remote working – the finance department.

The finance department often gets left behind when it comes to digital transformation largely because it is so heavily regulated. And because of this, one of the biggest problems the finance teams face is that it’s sensitive data will likely be stored on a hardware server on office premises. If you look at how organisations update their software as they grow, it’s usually the finance department lagging far behind, or sometimes forgotten about altogether. This is because finance has complex requirements that can lead to the attitude of: if it ain’t broke, why fix it?

Up until now, most finance teams have overcome the challenges this situation presents, but with the repercussions of the pandemic still very much in play, the complications that go hand-in-hand with on-premise technology have been more noticeable than usual. As a result, COVID-19 is becoming a catalyst for a digital transformation in finance, or more specifically moving finance and accounting software away from traditional on-premise solutions to built-for-cloud services. But what are the advantages of this approach, and what should finance teams be looking for in a built-for-cloud solution?

 

  1. Simon Bull

    Cost: The Software-as-a-Service (SaaS) approach that is the basis of many of today’s cloud computing businesses generally offers customers a convenient monthly pay-as-you-go model. Given that all that users need to access the software is a desktop, laptop or smart device and internet connectivity, they can also save money on the server hardware that has previously sat in the corner of the office. Hint: compare pricing from several potential providers to make sure there are no unexpected extras before signing up.

  2. Service: Good cloud-based providers offer extremely strong levels of customer support and service. It should be very easy to get help quickly and conveniently, and they should be in a position to offer advice, identify problems and fix errors without undue delay. Hint: ask for references from existing customers or look for online reviews to assess their service and support capabilities. Also, carefully check their Service Level Agreement (SLA) to clearly understand where their commitments begin and end.
  3. Security: Established cloud providers offer high levels of security, data protection and backup services as part of their ‘as-a-Service’ package. Customers benefit from the protection afforded by security specialists whose job it is to prevent breaches and keep data completely secure. Hint: Check their security policies and consider talking to existing customers about their security track record.
  4. Compliance: Cloud providers specialising in the finance industry should have compliance at the heart of their product set. Hint: Check with potential providers about their levels of compliance and certification, particularly if you have specialised requirements.
  5. Ease of use: today’s built-for-cloud software services are built for purpose, with many offering a high degree of bespoke capabilities so every user can tailor it to their precise needs. This is in contrast to traditional software packages that can be far less flexible, forcing the user to work in a particular way that might not be ideal. Hint: ask potential providers for an online demonstration to check the way the services work meet your needs.
  6. Performance: In the early days of cloud computing, finance software was too basic for many professionals to consider. Today, there are many entry-level services, while others offer a comprehensive range of capabilities to precisely fit the needs of professional finance departments. Hint: evaluate the range of capabilities offered by a cloud provider, which should include areas such as: extensive analysis, proper periodic management and business calendars, multi-currency, multilingual and multi-company operation, full VAT handling International coding, tax and language flexibility, automatic reconciliation / bank integration, built-in key performance measurement, advanced search, selection and drill-down, document and image scanning. Hint: compare the features of different providers in advance – if anything important is missing, look elsewhere.
  7. Regular updates: Software developers find it much easier to update and improve their services when they are delivered online, and can more effectively keep up with finance best practice and changes to rules and regulations. Many also encourage users to suggest improvements or new features which are then provided to customers at no extra cost. Hint: ask providers about how often they update their software and whether you can suggest improvements.

 

For many businesses, these are compelling reasons to adopt cloud-based finance software services, even in normal circumstances. But considered in the context of the current remote working environment, built-for-cloud finance software can help departments to adapt and capitalise on working from home and match the levels of digital transformation seen across many other key business functions.

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