A digital transformation is no longer an option for insurers. Changing business strategies and dynamic customer demands make it critical for them to embrace AI, IoT, and use them intelligently across the value chain for superior brand differentiation and profitability. By processing the real-time data collected by sensors through AI, carriers can understand their clients more deeply, resulting in the creation of new product categories, more personalized pricing, and real-time service delivery.
Thanks to AI, smart insurance companies are experiencing a transformation in business strategy from “detect and repair” to “predict and prevent.” Organizations are developing cutting edge AI-based solutions to transform the insurance industry through the audio, image, and video analysis, wherein insurers can now automate several processes and settle claims quickly. For instance, an individual having a car insurance policy can file an instant claim in the event of an accident by uploading pictures of the crash via mobile app. AI-based algorithms, programmed to curate relevant claims-related data from images, can then accurately gauge the extent of damage, and automate the claims assessment process. Auto insurers can also launch a usage-based insurance model, wherein case a policyholder drives recklessly, sensors would swiftly detect and transmit the data to the insurer’s IoT platform for a corresponding increase in the premium.