Presented by Prime Meridian Direct

How is AI technology changing car insurance?

What exactly is ‘AI’ or ‘Artificial Intelligence?’

According to Wikipedia, it is “Intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans. Colloquially, the term ‘artificial intelligence’ is often used to describe machines (or computers) that mimic cognitive functions that humans associate with other human minds such as learning and problem solving.”

‘Artificial intelligence’ or ‘AI’ is a popular buzz phrase these days, and for good reason. It has the potential to improve how individuals and companies do things.

For any business-to-consumer brand, artificial-intelligence-powered technology should be employed to improve the customers’ experience. This mostly happens behind the scenes, but customers see it too in their online interactions with brands.

Many companies continue to make large strides in this regard. This philosophy is true for the car insurance industry, and is referred to as ‘fintech’, which is short for ‘finance technology’.

So, how has artificial intelligence impacted the car insurance industry? ‘Back-end functions’ such as processing claims, for example, can be sped up with the use of ‘intelligent’ software platforms. It can also remove the potential for human error from key internal processes.

Most things can be done online these days but is it easy to do, or would you rather phone a call centre to get things done? If an online process or function largely frustrates customers, then it has failed in its current form. The potential for ‘predictive personalisation’ is exciting.

This can appear in the form of pre-emptively tailoring online customer interactions to an individual’s needs. This is based on an automated intelligent system that learns what different customers want to experience and how they want to experience it.

This helps remove customers’ frustrations and simplifies processes. Artificial intelligence in the form of a company website’s digital assistant or chatbot can help improve customer service in a user-friendly way.

In some cases, companies are holding out for more advanced AI before they subject clients to it. For example, a rudimentary chatbot can actually be more annoying in some cases than not having one at all.

AI is here to stay and now is the time for us to fully embrace it in a practical way. Staff should be upskilled to take advantage of it. It can empower staff to focus on less repetitive tasks and spend more time on ambitious creative problem-solving.

However, there will be some duplication of efforts, as some people prefer to talk to someone via a call centre while others prefer the convenience of a fully online process.

Ultimately, it doesn’t have to be complicated. A customer-centric approach should guide car insurance companies, who can then decide on the best tool for the job on a case-by-case basis.

This article was published in partnership with Prime Meridian Direct.

Latest news

Partner Content

Recommended

Share this article
How is AI technology changing car insurance?