Compared to other industries, insurance industries are slower in adopting technological changes. Many insurance industries are still engaged with paper-based manual processes which require human intervention. Artificial Intelligence has the ability to revolutionize the insurance industry.
We will see insurance become more customized because insurers using AI tech will be able to recognize better what their customers need. Insurers will be able to understand cost savings by sprinting up workflows. They will also uncover new revenue lines as AI-driven analysis unlocks new business and cross-selling opportunities.
The involvement of AI and ML in the critical process of insurance claims might be slow but the future seems to be bright for insurers. The insurers can speed time to assert resolution by using machine learning models and can recognize the extent of damage to vehicles.
Tractable, a UK-based startup is one of the companies on evolving Artificial Intelligence AI and ML in insurance claims. Their business started with using machine learning models to spot the scope of damage on cars. The company is working with twenty of the largest global insurers, to subdivide into property and home insurance.
Climate-driven disasters are increasing in frequency which leaves humans with areas difficult to access. Therefore it is required to understand the extent of insurance claims, by bringing in and applying advanced technological models like Artificial Intelligence AI and ML.
Over the next 5-6 years, we might expect large insurers to throw out the old manual process of insurance claims and bring in Artificial Intelligence. If the time of the claims process improves, we will be able to witness the insurance companies employing their own computer vision experts to modernize the claims flow. Whether it is a startup company or an old company, both need rigorous Artificial Intelligence training and interference.
Even now there is the involvement of humans in the claims process mainly for vehicles. The manual process takes around two months. It will be slow but the process can be shifted from two months to a few days.
For Tractable’s car insurance claim process, retraining on models of a broad range of vehicles, components, and damage types is one thing. For specific geographies, it gets quite much complicated, thrusting the need for an increase in training investments. For its car claims business, the company is deploying AWS for production and AI training. It is using 60-70 GPUs for model and training, and another 40-50 GPUs in production. Every company must follow such basic rules which include making, training, and model refinement as an everyday activity.
The insurance industry is not different from others where the value of field employees making decisions is less coherent and in some cases, more accurate, than what a well-trained model can provide. However, there is one thing that makes insurance different. There is no specific or any particularly suitable model that can be effectively used or added for variation (methods) when splitting into the property domain. Artificial Intelligence will have to get better, but along with it the sources of data have to get better. This also means hardware will have to be more reasonably priced and streamlined.