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Artificial Intelligence (AI) is transforming the insurance sector, helping companies work faster and more accurately, according to a new research report by Policybazaar.
The report showed that AI has improved claim accuracy by 14 times, making a big impact on how insurance is handled today. The report explained that claims are the most important part of any insurance policy, and AI is now playing a major role in identifying potential fraud cases early. In Term insurance plans, around 11 per cent of cases are flagged by AI for possible fraud. In savings plans, the number is even higher at 16 per cent. By spotting these cases early, companies can speed up genuine claims and win the trust of customers. It stated, "This has led to a 14x improvement in the Early Claims Factor since 2022". According to the report, AI now manages around 45 per cent of certain insurance tasks, reducing the need for manual work and reducing mistakes. AI has also made a big difference in customer service. Chatbots now handle over 30 per cent of first contact queries, which is a big jump from 15 per cent just a year ago. The time taken to resolve customer queries, known as Turnaround Time (TAT), has dropped by 15 per cent. At the same time, customer satisfaction scores (CSAT) have gone up to over 94 per cent in the last quarter. Another area where AI is helping is during the policy purchase process. Previously, it took around 4 hours to issue a policy. The report added that now, nearly half of all customers receive their policy in just 15 minutes. This solves one of the biggest problems in insurance: long delays that often cause people to lose interest. Generative AI bots, still in testing, can now explain complex insurance terms in a simple and contextual way. This has led to 5-8 per cent more people buying insurance during the product discovery phase. AI also helps in managing customer complaints better. New AI tools can tag customer tickets and send them to the right agent with over 84 per cent accuracy. The report outlined that AI is helping the insurance industry work faster and making the customer experience smoother and smarter. (ANI)
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