Artificial intelligence (AI) has been at the forefront of technology leaders’ conversations for several years. The focus is to create human-like processing abilities so that companies can complete task-based work that would traditionally require manual efforts.
The inherent advantages of a computer that can self-correct, understand and learn is that it brings with it the promise of not only doing what humans can do, but also doing what they cannot. AI can analyse vast amounts of data, make assumptions and provide predictions at a scale and depth of detail that is impossible for individuals. Furthermore, it can do so without the administrative limitations of a human workforce – reducing downtime, turnover, knowledge gaps, and costs.
According to a 2021 report, companies are not only investing in AI to disrupt the current methodology in the industry, but to supplement – and enhance – their own business processes. The report found that “respondents report significantly greater cost savings from AI than they did previously in every function, with the biggest year-over-year changes in the shares reporting cost takeout from using AI in product and service development, marketing and sales and strategy and corporate finance.”
The flexibility of AI applications
Who can benefit from the opportunities presented through AI? The limits have yet to be fully realised but insurance providers and administrators have certainly started to test the waters.
At its core, AI applies advanced analysis and logic-based techniques to interpret events, supplement and automate processes, and help leaders take effective actions. Because AI can “learn,” it can be taught to serve more than one purpose. For most insurance risk programs, AI can be used to serve multiple different business objectives. Determining what kind of AI-assisted processes your business needs is the first step in applying it effectively.
At Ventiv, we have built tools that leverage state-of-the-art AI to predict a variety of insurance-related scenarios. For example, Ventiv Geospatial can conduct simulations and predict the direction and impact of severe weather patterns. These simulations make risk managers more effective because they can see that a storm is coming and predict how it would impact a client’s properties. They can now get data-backed answers to questions such as, “If a major storm’s trajectory changed, how would that change the business impact?”
Workers’ compensation is another branch of insurance that can benefit from AI-driven analytics. By automating several processes around how you score a bodily injury, you can more accurately anticipate the time it will take to get an individual back to work after an injury. Those data points can now be at your fingertips.
Better business outcomes with AI
While marveling at the impressive wealth of knowledge AI can offer, business leaders are becoming wise to the bottom-line implications of an AI-backed organisation. Using the example from above, imagine the advantages you would have if, when an event occurs, you could know what to expect, how to triage it and how to identify if a case will go to litigation. Imagine having the automated processes in place to streamline the standard cases, so that your top talent could prioritise and mitigate the most threatening and expensive claims instances.
In 2022, companies of all sizes are realising that not leveraging AI means they are falling behind. Smaller players are making strategic investments in purchasing AI because they need the leverage to bring on clients faster. Larger carriers that initially struggled to make investments in AI because of monolithic IT capabilities and arcane tech architecture are now leaning into the change.
Embracing AI as part of your risk management program now is the only way to ensure you won’t be left behind. Smart, agile organisations are embracing the future because it’s already here.
Source: Business Reporter