Experts are predicting that Artificial Intelligence (AI) and the Internet of Things (IoT) is likely to affect the entire landscape of the insurance industry.
AI is going to revolutionize the way insurers gather information about you which, in turn, will affect how they evaluate your risk profile.
Here are the three ways that AI will enhance your insurance buying experience
Chatbots Will Recognize You
Advanced image-recognition and social data will be used to personalize your service experience.
Platforms Will Verify Your Identity
Automated personal identity verification will speed up authentication necessary for quoting and claiming.
Insurers Will Be Able to Customize Your Coverage
Machine learning will allow for a fully online or app-based insurance shopping experience.
In South Africa, the insurance industry is highly regulated in order to protect both customers and insurance companies, but the regulatory framework has unfortunately not kept up with technological developments.
So what will happen, for example, if an insurance company using AI rejects your insurance claim and what will your right of recourse be?
A local insurance company, already using an AI chatbot to handle claims, has indicated that should one of their claims be rejected, reasons for the decision will be made available, and a thorough investigated will be launched.
Should the issue not be resolved, the client would then need to use the current avenues available to them, such as the Ombudsman for Short-Term Insurance, to resolve the dispute.
After a claim is rejected and is escalated to the Ombudsman, it’s likely the insurance company would also have to re-evaluate the claim themselves to determine if the AI was correct or not.
Disputes like these will be ground-breaking for South Africa and will hopefully lead to an updated legislative framework that promotes innovation.
Whether it’s telematics, self-driving cars, chatbots or monitored smart homes, it’s ultimately likely customers will move towards insurers who’re able to best harness Artificial Intelligence to improve their customer experience, as well as their claim-management process.
After all, most people judge the performance of insurance products when they need to be paid, not when they make their purchase. But buying insurance, or filing a claim, with just a few mouse clicks has undeniable appeal …
* This article is provided for informational purposes only and should not be construed as legal or financial advice.