What artificial intelligence (AI) empowers us to do is progressing rapidly. As more technological breakthroughs emerge, we’ll see even more dramatic changes in how we do business.

We’ve already seen how beneficial AI in insurance has been for both business operations and the customer experience through its:

• Improved underwriting accuracy and risk assessments – The automated evaluation of risk factors through access to more data via telematics, remote sensors and digital records creates a more streamlined, consistent underwriting process that minimizes human bias and error. Moreover, AI’s ability to analyze data at rapid speeds helps insurers obtain insights in real time on various risk factors and consumer behavior for better risk portfolios.
• Capacity management and cost savings – The reduction of manual and non-value-add tasks such as data entry, simple claims handling and document processing through AI enables customer service representatives to spend more time on client retention and consultations.
• Personalization – AI in insurance enables better customer segmentation and new data sets on customer touchpoints. With a more comprehensive understanding of their target markets, insurers can provide a more tailored experience with individualized coverage and pricing for each customer.

In a world of dynamic consumer behaviors and preferences, AI is a powerful tool that empowers us to spend more time on the consumer, especially as the human touch is a critical component of successful transitions. But as technological capabilities continue to expand, it’s important to strike a balance between automation and humanization.