This post is a quick overview of an Abto Software’s blog article.
Artificial intelligence and similar advanced techniques are revolutionizing business operations across industries. And the insurance segment is not an exception — modern innovations are transforming day-to-day processes increasing performance, decreasing errors, and significantly enhancing overall customer experience.
Our company gained extensive domain expertise in delivering pet insurance automation platforms, and more. Our engineers know exactly what challenges and limitations pet insurers might face in their daily workflows.
Artificial intelligence is rapidly gaining momentum and being actively adopted by mature business leaders. From chatbots accelerating better customer service to algorithms streamlining burdensome manual processes — the dynamic business digitization is taking over the insurance sector.
Market overview
In the last decades, artificial intelligence became irreplaceable in various business verticals all across the world. Insurance providers, for example, have seen great outcomes from investing in adopting computer technology to automate routine processes.
As stated by institutions in the United States:
In 2021, there were 300 million people with health insurance
Insurance fraud is stealing at least $308.6 billion every year from the average consumer
The rising veterinary costs and costs for grooming, personal and dental treatment, and other common services, as well as rising pet adoption since the COVID outbreak among others have been greatly driving pet insurance. With that, many providers have witnessed more people getting interested in getting veterinary reimbursement — while there are still few organizations, which provide pet insurance, more and more companies are expected to join the trend.
As more pet owners are getting pet insurance, the industry is expected to grow:
In 2021, 151.1 million American households were reported to become dog or cat owners
In the same year, the worldwide pet insurance market size was valued at almost $3 billion
Main trends to watch
With digitization and automation in the insurance industry over the last years, new customers have emerged. Those demand instant access to their insurance provider and personalized, convenient services.
Talking innovation and automation, claim review and processing is the new battleground among operations. And considering the resources these processes typically requires, it’s obvious why strategic business leaders are adopting modern technology to minimize those efforts.
AI in pet insurance: Implementation cases
1. Claim processing
Enabled using artificial intelligence, claim review and processing eliminates unnecessary human intervention. As part of comprehensive, enterprise-level platforms, smart solutions might validate eligibility requirements and pass claims through fraud detection before actual claim settlement.
2. Smart chatbots and assistants
Enabled utilizing mathematical algorithms, smart chatbots and assistants can exceed the abilities of humans. Seamlessly introducing business automation, these solutions can analyze and manage customer concerns, facilitating greater customer satisfaction and loyalty.
3. Advanced analytics to accelerate fraud detection
By processing historical information to identify fraudulent activities, AI-supported solutions can efficiently:
Eliminate potential illegitimate expenses
Maintain overall financial stability
Ensure instant premium stability
Preserve existing ecosystem integrity
4. Predictive analytics to streamline customer experience
By providing valuable insights into the customer’s behavior, AI-assisted solutions might also:
Eliminate the administrative burden
Simplify the application process
Help with common issues
Assist with policy inquiries
Analyze breed, medical history, and other relevant details
Provide personalized insurance options
AI for pet insurance: Business value
1. Speed up claim processing
Manually processing personal information, coverage details, medical reports, and other common documents? Artificial intelligence can recognize, extract, collect, and analyze necessary information perfectly accurately, minimizing time and cost.
2. No more human error
Customer management, policy issuance, risk assessment, product distribution, and more are prone to error. Mathematical algorithms can handle day-to-day routines without discordance, eliminating potential reputational and financial damage.
3. Fraud detection and prevention
Repeated filing, historical rejection, fake and staged accidents, policy and premium fraud are all real issues. Artificial intelligence can monitor potential imposture by analyzing high-risk profiles to identify roguery before actual occurrence.
4. Regulatory compliance
Insurance companies might also experience challenges with keeping internal operations regulatory compliant. Modern solutions might help seamlessly navigate the evolving regulatory landscape facilitating compliance with standards such as the CCPA, the CPRA, the GLBA, and HIPAA, to name a few.
Summing up
By leveraging artificial intelligence and other advanced techniques (machine and deep learning, for example), insurance companies increase revenue, decrease errors, and considerably enhance overall business operation. Introducing automation, strategic leaders might transform manual routines into perfectly aligned workflows boosting performance.
Are you ready to move towards going digital?