Quick Glance
The blog highlights how generative AI is transforming various aspects of the insurance sector, projected to grow at a 33.1% CAGR from 2024 to 2029. Gen AI impacts marketing and sales through personalized solutions, underwriting through automated risk assessment, servicing through AI chatbots, claims management through automated data processing, personalized product offerings through predictive analytics, and predictive risk management. Coforge's Quasar platform offers insurers a comprehensive suite of AI-powered tools, pre-built use cases, robust governance, and deployment flexibility to leverage the benefits of generative AI at scale.
Gen AI can transform the insurance sector through various means. It can skim through large amounts of data, pick out required information, and cut down various manual and labor-intensive tasks in no time. It enables insurers to leverage the power of data coupled with automation and come up with innovative offerings. Similarly, it can automate many mundane tasks, like underwriting, explanation of policies and generating summaries, making it easier for customers to navigate through purchasing a product.
According to a new market research report, published by Global Market Estimates, the global generative AI in insurance market is projected to grow at a CAGR of 33.1% from 2024 to 2029.
Let us check out how Generative AI is impacting every vertical of the Insurance sector.
Marketing and Sales
Generative AI enables the sales team to mine useful insights out of enormous customer data from different sources, including online behavior, past interactions, and social media. AI algorithms analyze this data to generate detailed customer profiles and buyer personas. Based on these profiles, personalized solutions can be offered to customers. For example, Coforge AI-powered product Quasar can identify potential customers who have purchased a new home. Targeted insurance policies can be further offered to them.
Underwriting
Traditional underwriting is a time-consuming process and involves collecting and assessing individual risk factors manually. Generative AI automates this process by evaluating historical data, market trends, and other variables to assess risk. For instance, AI can quickly analyze a customer’s driving history, credit score, and other relevant factors to give an estimated insurance quote in real time.
Servicing and Policy Administration
No service sector can do without reliable and quick customer support. In the insurance sector, customers need 24/7 support for policy inquiries, claim updates, and general assistance. Gen AI is revolutionizing customer service through its AI-powered chatbots and virtual assistants. For instance, a customer can report a car accident through a chatbot. Following it, the AI system will instantly initiate the claim process by guiding the customer through the necessary steps.
Claims Management
Claims management in insurance sectors involves the systematic process of handling and resolving claims made by policyholders. The traditional process of claim management requires feeding plenty of data manually. However, Generative AI automatically extracts and processes data from diverse documents, including claim forms, medical records, etc. In addition, Gen AI-powered systems can process claims in real time and detect discrepancies in records too. As a result, insurers can precisely process claims in reduced time.
Personalized Product Offerings
Generative AI uses predictive analytics which can be leveraged by insurance companies to offer personalized products based on individual customer data. Insurers can also target the most promising demographics for tailor-made products. It enables insurers to stay competitive. For instance, AI-powered system can evaluate a customer’s health records, lifestyle, habits, and genetic predisposition to craft a customized life insurance policy.
Predictive Risk Management
As already mentioned, Gen AI is powered by predictive analytics which can be used to assess emerging risks and potential threats to the insurance industry. By analyzing historical data and market trends, insurers can foresee risks, like extreme weather events, technological disruption, and economic downturns. This information can be utilized to gear up for the upcoming events. For example, Al's prediction of a region’s vulnerability to flooding can help insurers prepare for potential flood-related claims.
Coforge Quasar - Offering Unparalleled Features to Insurers
At Coforge, we understand the huge potential and limitless possibilities Gen AI can offer to the insurance industry. That’s why we have an exceptional AI-powered platform named Quasar. With Quasar, insurers can seamlessly develop and deploy AI-powered applications at scale. Its toolkit encompasses a comprehensive suite of 100+ APIs, primed for seamless integration. Embracing a modular and scalable architecture, Quasar offers an impressive array of 100+ pre-built cognitive and generative use cases, empowering the creation of tailored solutions. The platform adheres to a robust governance framework, encompassing Process Governance, API Governance, and Model Governance (MLOps). Insurers have the flexibility to opt for a cloud-based or on-premises setup, fortified with enhanced security and controls.
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About Coforge.
We are a global digital services and solutions provider, who leverage emerging technologies and deep domain expertise to deliver real-world business impact for our clients. A focus on very select industries, a detailed understanding of the underlying processes of those industries, and partnerships with leading platforms provide us with a distinct perspective. We lead with our product engineering approach and leverage Cloud, Data, Integration, and Automation technologies to transform client businesses into intelligent, high-growth enterprises. Our proprietary platforms power critical business processes across our core verticals. We are located in 21 countries with 26 delivery centers across nine countries.