5 Benefits of AI in the Motor Insurance Industry
Updated: May 19
Imagine a world where the insurance claim gets settled in a matter of minutes. Better still, picture a world where all the motor insurance stakeholders are integrated and engaged in seamless processes. This sounds amazing, and thanks to artificial intelligence in auto insurance, it is a future we live to see.
Artificial intelligence (AI) is the intelligence exhibited by machines, whereby machines mimic cognitive functions associated with human minds; cognitive functions include all aspects of learning, perceiving, problem-solving, and reasoning.” As a concept, AI has a lot of benefits. Let’s take a look at the top five advantages that the motor insurance industry can reap from introducing AI into everyday workings.
1. Increasing Daily Workplace Efficiency.
Underwriting risk, processing and handling claims are typical tasks for an insurance provider. An artificial intelligence-powered system enables data collection and processing in real-time., this makes AI a powerful tool for improving workplace efficiency.
2. Generating Valuable Business Insights.
Business insights are necessary for any insurance provider to develop and improve their services to guarantee customer retention. AI can benefit the insurance industry by drawing more nuanced conclusions regarding data and trends, helping to provide new insights. In some cases, AI can spot what human workers find it hard to identify.
3. Improving the User Experience and Affordability.
Policyholders are expecting affordable, tailored services for their loyalty to insurance companies. However, depending on the manual operations process, such as carrying out an insurance manual risk assessment is a time-consuming process.
AI-powered analysis can tackle the problem by quickly and effectively cross-referencing drivers' and vehicles' history in addition to motorists driving behavior, trends and patterns with other data to deliver tailored and affordable services to improve the user experience.
4. Data-driven and AI-powered risk assessment and fraud detection.
While conducting manual motor vehicle risk management, or fraud detection; there is a great percentage of fraud that is hard to be controlled by the employees. These issues, if left unresolved, can cause financial loss or even criminal charges.
Insurers receive thousands and thousands of insurance requests and claims annually that leave insurers with a massive amount of data to assess for risk and fraud detection. With such huge data, there’s room for human errors and omissions that can cause insurers severe financial losses every year.
AI-powered automation minimizes human error risk and can complete tasks seamlessly with no room for errors, making it a valuable resource.
5. Aiding in transparent decision making.
Customers are looking for proof that the modern insurance premium is calculated using transparent methods. The idea of bias in insurance business operations isn’t acceptable.
AI helps to provide reassurance that a company is operating with integrity. Artificial intelligence has no bias and no inclination towards a decision - it uses logic and reasoning to create premiums. This helps with transparent decision-making.
It is clear that artificial intelligence plays a vital role within the auto insurance industry. Using the technology to speed up processes and create a broad range of transparent, personalized services seems logical.
AI is becoming more common in business. Having technology that can quickly complete important tasks or generate valuable insights helps a company perform well. There are plenty of ways to consider using AI, and the motor insurance industry should consider it an excellent supplement to use alongside a human workforce.
How Motori can Transform Insurance Operations Using AI
Motori is an innovative one-stop-shop digital platform for insurance companies, brokers, workshops, agencies and other businesses that are stakeholders in the motor insurance market. Motori relies on the latest technologies such as Artificial Intelligence and Machine Learning and focuses on delivering innovative services for insurance stakeholders' businesses to help them become more agile and flexible to the market needs.
Motori introduces the digital era to the Motor insurance industry that enables all the stakeholders to achieve digital transformation, operate profitably, minimize fraud probabilities, and adapt continuously in a seamlessly integrated platform connected with all stakeholders.