As with so many other sectors, artificial intelligence (AI) is tangibly changing the auto insurance industry. The goal is to improve customer service and safety, but also to save insurance providers and policy-holders money.
One prediction is that AI will cause the auto industry to shrink, as cars become safer, the need for human interaction diminishes and applications help manage risk.
Pricing Based on Behavior
As it stands, safer drivers receive discounts on their policies. With AI in place, businesses are finding processes simpler and less costly, while risk assessments are becoming more accurate.
It’s predicted that auto insurance customers will soon pay premiums based on actual safe driving habits and number of miles driven. This is because AI will be used to monitor a driver’s safe driving practices and keep tabs on how much that person actually drives. Pricing will be based on individual data, not sampling. No guessing required.
Automated Buying Experience and Personalization
Thanks to AI, the insurance buying process will change drastically. Customers will interact with chatbots that are able to recognize the customer and personalized the sales experience. Automated identification will speed the process up and allow chatbots to provide customized coverage.
Faster Claim Settlement and Fraud Detection
AI can speed up the claims process significantly, which is apparently a top priority for customers. Customers will be happier and time and money will be saved. Detection of fraud based on data is already taking hold in other industries, and over 75 per cent of insurance providers report that they have already used automated fraud detection technology.
It’s evident that technology is already having a huge impact on the way cars operate, and how insurance providers are doing business. Artificial intelligence is changing the way we do business, and by all indications will revolutionize the auto insurance industry in ways yet unforeseen. AI will no doubt continue to evolve the way auto insurance providers do business.