Can Artificial Intelligence Help the Car Insurance Industry?
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CAN ARTIFICIAL INTELLIGENCE HELP THE CAR INSURANCE INDUSTRY?

“You know these car insurance companies – they make me crazy! I submitted my claim ages ago, and I still haven’t heard anything. They seem to be so slow, and so full of red tape. I think I need to go to a car insurance company that can process claims faster, and without much hassle.”

It is not a surprise then that, in general, the car insurance industry hasn’t exactly got a great reputation when it comes to good customer service. Nonetheless, this adverse situation can be turned around using artificial intelligence to create a more rapid and more transparent service.

An insurance company based in New York City is developing algorithms that will make it quick and easy for signing up and approving claims. We are talking here in terms of minutes and not days. By automating the service, it means of course less staff to hire, and in this way, the company can keep costs low.

This may well result in dissatisfied customers from big insurance companies being attracted to an “artificial intelligence” insurance company such as the one in New York City.

ONLINE – THE ANSWER TO SPEEDY PROCESSING OF CLAIMS

It’s the younger generation who like fast online transactions in order to get things done. And so this is the way a car insurance company such as PMD attracts such clients. Clients are totally put off by companies with endless paperwork and that takes days and days to complete a legitimate claim. The ‘golden oldies’ are not so au fait with ‘all that online stuff,’ and so it is of no surprise that US clients under the age of 44 are twice as likely to buy insurance online than those over 65. Similar trends occur in Latin America and Europe.

THE POWER OF ARTIFICIAL INTELLIGENCE

Computer technology and software is so powerful – having suitable software allows insurance companies quick access to all sorts of information. Algorithms learn from various interactions with customers how service may be improved over time. A few employees can be available to interact with clients by phone to address the more complicated cases.

WHAT ARE CAR INSURANCE CLAIM SOFTWARE ALGORITHMS USED FOR?

One company uses claim algorithms only to help decide if a claim should either be paid automatically and instantly, or if a human should be involved. Nevertheless, challenges still face the artificial intelligence system, such as, for instance, when a flood of claims arrive from a natural disaster situation.

Accenture has developed an artificial intelligence solution called “CATHY” (Cognitive Agent To Help You), that provides a customer service for the insurance industry. By using CATHY, insurers can get immediate access to multiple customer service requests via various channels and respond to them simultaneously. The system responds in real time to customers’ insurance service needs and queries. If the situation becomes complex, the system faultlessly transfers the client to a human who takes it further.

ARTIFICIAL INTELLIGENCE IS THE WAY TO GO

Clearly the continual development of artificial intelligence systems for use in handling claims in the car insurance industry has enormous potential in not only providing a rapid turn-over in claims processing, but also in saving on human resources which are huge overheads for any company. In fact, recently Fukoku Mutual Life Insurance of Japan announced it was laying off 30 employees and replacing them with an artificial intelligence system that can calculate insurance payouts. Clearly, the downside of using artificial intelligence systems is the potential loss of jobs.

PRIME MERIDIAN DIRECT PROVIDES 100% ONLINE CAR INSURANCE SERVICES

PMD offers an online platform for all South African’s car insurance needs, which is incredibly convenient use.

One of the reasons why PMD is able to provide innovative cheap car insurance products is for the very reason that customers are able to access the company online for all their queries, quotes and claims. Staff members have to be involved to provide the “human” factor when clients would like to discuss and understand the policy they are intending to buy.

By using the Internet, PMD is able to effectively offer a 24/7 service car insurance. By allowing car insurance to be bought telephonically and online, such companies bring you under cover faster, more conveniently, and much cheaper than via the considerably more expensive traditional distribution channels. Ninety five percent of all quotations are done telephonically. Most of their documentation is emailed, whilst SMSs are used for brief communications, thereby saving considerable amounts of time, money, and manpower. In addition, an important advantage for the potential client is that they can communicate with PMD at all hours.

Sources:

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