Artificial Intelligence (AI) has been around longer than most people realize. It has slowly been implemented into business aspects that have traditionally taken a substantial amount of time out of the day to conduct. The insurance industry is one such area of business plagued with slow service times, unhappy customers, and lots of fraud. AI is changing all that by adding speed, accuracy, and security.
But the thing that most people still wonder about is how artificial intelligence is shaping new trends in home insurance. There are three areas in which the most impact has been made and will continue to be made as AI is implemented by more and more insurance companies. Let’s dig in and look at the three main areas to better understand the new trends racing through the home insurance industry.
When it comes to the insurance industry, speed has been one of the most significant issues that the agents, and the consumers, have both had to deal with. AI reduces the time by such a large amount that customers are no longer going into the offices where agents are sitting behind ancient computers waiting to input your information. The visits to the old, stuffy office buildings are a thing of the past, which most people who are embracing the technological era celebrate.
The most significant trend in the industry has been driven by this shift in business practices. Millions of people around the world have gone to use their mobile devices to conduct all of their business. It is simple to grab the cell phone while on break at work and check the status of their insurance claim. Or if you are at home and have decided to get a new home insurance policy, it is simple to pick up the phone, log into your favorite search engine, and find one.
This trend is not likely to go away any time soon, if it ever does. It is predicted that as AI becomes more widespread, consumers will not only want to use online options but will soon have no other way to conduct their business. As the insurance industry continues to see its benefits, it will strive forward without looking back.
The second trend that can be seen in the insurance sector that has been caused by AI is the accuracy of the policies being given and the genuine need for claims that are being authorized. Currently, each policy offered to consumers is based on a one-size-fits-all contract, depending upon your need, coverage amounts, and history.
That will no longer be the case because AI will take all your information and analyze your needs. From there, the system will offer you a specialized policy to cover everything you need without adding things you do not want. Nobody wants to pay for options they do not need, and with the aid of artificial intelligence, it will no longer have to be part of the process. When you use online platforms such as iSelect home and contents insurance finder, the policies will never have added fluff.
The accuracy within the claims sectors of the industry is perhaps one of the biggest positives that can be found. Year after year, people file fraudulent claims. Because of this, the premiums have increased every year you pay for your insurance policy. The AI systems will analyze each and every claim that comes in, and if they see anything out of the ordinary, it will be red-flagged for review.
This means that the investigating agents will have a smaller group of claims to check out, giving them time to actually conduct the checks entirely and adequately. It brings more accuracy to the industry by keeping the people filing claims honest.
Security is a significant issue that has come up with the push into the technology era. The more information stored on the internet, the more access hackers and con artists have to it. It seems like any security systems put into place have ways around them, which seasoned hackers have no problem finding. It has become such an easy process that people not working are dabbling in the art of hacking.
The great thing about AI is that it works directly with the Internet of Things and Blockchain, a system designed for security. How it works is simple but complex at the same time. Each location hooked up to the same system will be able to add information, which is then added to the database. Once a block gets full of information, another block forms and connects itself to the previous.
This chain of information is called Blockchain. It adds security because each and every computer on the system will have the data stored on their internal computers. So, if a hacker did get into one computer, the others would notice the changes being created. The hacker’s location could be quickly isolated and stopped, and the offender will get caught.
The older generation has doubts about using anything hooked to the internet. Unfortunately for them, the trend will continue to grow as the future of insurance begins to change forever. The systems that will be available will all be run through AI systems that can collect data, process data, offer contracts, and complete the signing process all by using online platforms.
The newer generation of consumers loves the idea of being able to do everything on their mobile devices. At least one device is in the hands of the new customer base from the time they get out of bed in the mroning, to the time they pass out at night.
It is a win-win for the insurance companies because using AI systems will save them time and money, which in turn comes back to you, as the consumer, with reduced rates on premiums. AI is the true way of the future, and the trends it has caused in the home insurance industry will continue to drive improvements in the process. Improvements that will be for the good of all parties involved.