Artificial Intelligence & Its Trends in Insurance

Artificial Intelligence & Its Trends in Insurance

Artificial intelligence (AI) is already here and will only continue to grow in the coming years. More than just a mega-trend, the applications of artificial intelligence are varied, multidisciplinary and dimensional, bringing benefits unmatched by any other technology in decades.

Inevitable as it is, the manner in which we harness the uses of AI in our daily lives can have measurable impact. Because its pervasiveness is not something that we can avoid, it makes sense for us to observe and judge where there is potential for reduced errors, improved judgment, and better results. And, the insurance industry, is one where we may potentially see major AI disruption.

It’s important to first clarify what AI really means – minus the jargon that often accompanies it (think machine learning, deep learning, algorithmic patterns).

What is Artificial Intelligence (AI)?

Encompassing a broad range of methods and technologies that creates softwares smart enough to draw on data to autonomously control machines, forecast, and derive outcomes, artificial intelligence doesn’t just learn from experience alone. They independently glean new knowledge and advance into new cognitive terrain this way.

AI matters precisely because it can be trained to accomplish specific tasks – sometimes mundane, time-consuming and tedious – without errors. Along the way, its processing of data and recognising patterns makes it a viable source of potential for reducing time taken in complex decision-making scenarios.

In what ways will AI disrupt the insurance industry?

Where there is insurance involved, there is potential for AI disruption. Think about the following scenarios. A future of self-driving cars will redefine the landscape for health, hospital and car insurance policies. Automation capabilities can make claims assessments and risk management a lot faster, bumping productivity levels for insurance companies and brokers in Singapore and beyond. AI’s success in positively reinventing the flywheel for insurance health cover processes lies in the power and capabilities to do exactly that, and to what extent it can.

The benefits that can arise from training algorithms to detect malignant tumours, predicting hotspots for viruses, and assisting surgeons are aplenty, improving the all-around lifecycle of insurance for both consumer and organisation.

Looking at expat and local health cover, what are the benefits of AI?

We’ll consider these as potential benefits given that there is a seamless integration of AI into insurance policies, planning, and roll-outs.

1. Capability for automation

One of the biggest benefits of AI disruption in the insurance industry has to do with its capabilities for automating mundane, repetitive and manual tasks that would be highly error-prone.

Traditionally, large numbers of employees were needed for the operation of cumbersome processes – mostly due to its variations in products, rules or underwriting processes, as well as lack of adoption of standards across the value chain.  More than just a tool or technology, AI is transformative, capable of accelerating processes to free up manpower, time and money. Intelligent use of AI can process claims data, identify potential fraud and patterns, cutting handling times for such processes by tend-fold. Underwriting processes for hospital insurance plans can also become much faster and more accurate.

Processes that can be automated by AI can make a significant difference in redirecting resources into other channels that require more strategic decision-making.

2. Improved accuracy with more data

With more data, algorithms will be able to ‘learn’ better and make more accurate decisions. AI has been able to detect several health conditions, from breast cancer and pneumonia to early-stage Alzheimer’s. Even though the process of training these deep learning models can be complex, the pay-offs are immense.

Capability to screen cases and evaluate with higher precision comes in handy for healthcare professionals in making more accurate diagnoses in a shorter frame of time. As it is with most health-related diseases, early detection and diagnosis can be instrumental in effective treatment. For instance, certain cancers, like melanoma, can be incredibly difficult to detect in its early stages but AI algorithms are able to scan and analyse biopsy images and MRI scans 1,000 times faster than doctors.

Perhaps the most incredible part of it all lies in the continued upscaling and improvement of these AI models the more data is fed into them.

3. Enhanced patient care & personalised services

Because the adoption of AI reduces the amount of labour that goes into other work processes in the insurance industry – see claims management, research, training, detection & diagnosis – there is more time to put into personalising care for patients.

Similarly, because the amount of data that goes into every patient’s file is vast, it can be hard to take full advantage of it if there are only that many doctors around. The demand for healthcare services is only going to rise over time, and AI is key to revolutionising this aspect by addressing such challenges and offering value for improvement. With more time to focus on human-specific issues and decisions, doctors and nurses can put in more towards a greater patient-doctor relationship and experience.

AI can effectively help doctors to take full advantage of this data and create mitigation plans, risk assessments and treatments for patients based on quicker, more accurate data processing.

AI’s technologies are already well underway in most businesses, speeding up or fine tuning processes, resulting in decreased errors and greater efficiencies. Utilising this avalanche of data is where transformative change is prominent for insurance brokers.

Consulting Expat Insurance

As leading insurance brokers, we want to be there every step of the way. From life to hospital insurance plans, we are committed to providing a detailed and personalised service for you. Get the aid of our team of insurance brokers to see what type of policies best meet your needs.

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