Even if don’t fully understand the ins and outs of neural networks and machine learning, you may still have heard about the growing presence of artificial intelligence in industries across the globe.
Companies can use AI for any number of purposes, and life insurance companies are poised to make vast improvements to their productivity and efficiency by incorporating AI into their business models. Let’s take a look at some potential uses that life insurance companies have for artificial intelligence.
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Improved Claims Management
As AI chatbots become more and more prevalent, life insurance companies will be able to streamline customer services and claims management. And not only can AI handle the customer service side of a claim, it can also be used to quickly gather data from claims and then cross-reference this data with other records.
More Efficient Underwriting
Underwriting often involves predictions made from a large set of quantitative data. Done by people, underwriting can quickly turn into a lengthy and complex process. However, it’s possible to use AI to analyze large sets of data and assess an application in a fraction of the time.
This doesn’t mean AI needs to be responsible for decision-making — automating the initial processes of data collection and organization can free up human underwriters to spend more of their time doing the hard work of analysis.
Improved Actuarial Models
AI has shown huge potential in its ability to create predictive models of mortality and health. These models can then be used to make more accurate predictions of life expectancy and risk.
Once these models have improved, insurance companies will start to save more money by making more and more accurate predictions. However, these models only improve as more data is collected, so actuarial models may need time to become accurate enough for insurance companies to use.
Streamlined Marketing and Sales
Traditionally, individual salespeople have been used to stir interest in life insurance products. But with the availability of big data, AI can also be used to find potential life insurance customers, as well as guide these customers through the sales process.
Questions about claims or policies can often be solved through AI bots, and predictive analysis can be used to find the biggest potential markets for life insurance sales. These processes can reduce the amount of wasted time during the sales process, making marketing a more effective pursuit for life insurance companies.
AI and the Future of Life Insurance
If life insurance companies can find effective ways to incorporate artificial intelligence into their current workflows, they stand to gain back efficiency at almost every facet of their operations. Whether it’s in actuarial models and risk prediction, or even simply in sales and marketing, artificial intelligence has the potential to cause a massive shift in the life insurance industry’s future.
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