AI Transforms Insurance Industry with Significant Improvements
A recent research report by Policybazaar reveals that Artificial Intelligence (AI) is revolutionizing the insurance sector by enhancing operational efficiency and customer experience. The report highlights that AI has improved claim accuracy by 14 times, significantly impacting how insurance is handled today.
Key Findings:
- AI manages around 45% of certain insurance tasks, reducing manual work and minimizing errors.
- In term insurance plans, AI flags about 11% of cases for potential fraud, while in savings plans, the number rises to 16%.
- Early detection of fraudulent cases enables insurance companies to expedite genuine claims and build customer trust.
Enhanced Customer Experience:
AI has made a substantial difference in customer service, with chatbots handling over 30% of first-contact queries, up from 15% last year. The Turnaround Time (TAT) for resolving customer queries has dropped by 15%, and customer satisfaction scores (CSAT) have soared to over 94% in the last quarter.
Streamlined Policy Issuance:
The policy purchase process has become more efficient, with nearly half of all customers receiving their policies within 15 minutes, compared to the previous 4-hour wait. Generative AI bots, still in testing, can simplify complex insurance terms, leading to a 5-8% increase in insurance purchases during the product discovery phase.
Better Complaint Management:
New AI tools can accurately tag customer tickets and assign them to the right agents with over 84% accuracy, improving complaint management.
The report concludes that AI is helping the insurance industry work faster and provide a smoother customer experience. By leveraging AI, insurance companies can improve operational efficiency, detect fraud, and enhance customer satisfaction.
