If you’ve purchased any kind of insurance in the past few years—whether it's for your car
, renter’s insurance
or homeowner’s insurance
—you may have noticed that the process is very different than it was even just a few years ago. Just like many other industries, widespread access to online research, convenient apps and AI technology have cut out the middleman for any shopper willing to do the research. Consumers have more agency and freedom than ever when it comes to choosing a provider, but insurance providers as well have access to data and machine learning-based insights about consumers that inform the way they operate as well.
How do companies use AI?
Some apps even do the legwork for you, like AI-powered car insurance comparison app Jerry
, but how will AI change the way insurance companies themselves work? Many insurance companies operate under the notion that human error is inevitable, but AI is increasingly able to predict those errors before they even occur. According to a story from Property Casualty 360
, AI technology is poised to revolutionize the industry from the inside-out. MORE: CARCO Has Helped Dismantle Numerous Car Fraud Rings
AI and calculating loss
According to the World Health Organization, approximately 1.3 million people die worldwide as a result of automotive accidents, and those accidents cost families $55 billion annually in the U.S. alone.
AI instead works to replace human error with more prescie decision-making safety technology, with a end goal of making the driving experience safer for everyone involved.
As AI-powered “smart” technology in cars becomes the norm, some estimate that accidents will soon occur at a fraction of the rate they do now. Over 90% of crashes are primarily caused by driver error, but as AI is able to eliminate some of that error, our road will become safer and the amount spent annually on insurance claims
will greatly decrease. In many ways, machine-learning based technology is perfect for the insurance industry, and they both strive to understand patterns of human behavior so as to predict the best possible outcome.
The insurtech company Cover Whale, for example, uses data analysis and AI to study the behavior of truck drivers and analyze truck fleet data in real time. This both gives the insurer insight into what behavior is ideal for truck drivers, and also incentivizes truck drivers to work more safely, as safer behavior means lower premiums.
A future without fraud
Another large contributing factor to the way insurance premiums are calculated is from the impact of fraud. Insurance fraud is one of the main culprits for the rising cost of insurance premiums, and any steps taken to eliminate or reduce it will save both consumers and insurance providers in the long run.
It is nearly impossible to know just how much insurance fraud takes place in any given industry annually, but AI offers a possible solution in fraud detection and elimination through the use of pattern recognition.
AI-powered fraud detection technologies are able to detect anomalies in the claims process and streamline departments in claims and underwriting to minimize potential opportunities for fraud.
Save money on car insurance with AI-powered tech
With the Jerry
app, it takes just 45 seconds to sign up. After providing a few pieces of information, Jerry collects and analyzes data about your current coverage details. Jerry compares prices from 55+ insurance companies, comparing their prices and coverage to what you’re currently getting from your current policy. You then get a few top options to pick from before every renewal. In a world where automated technology is growing increasingly popular, sometimes you need a human touch to get the best service possible. While Jerry does some analysis automatically using machine-based learning, you’re never more than a phone call away from a qualified agent that can help you with anything else you might need.
Have a question about your coverage? Jerry’s friendly agents are here to answer your questions and provide advice on the best coverage options. This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.
4.7
.webp&w=64&q=75)
.webp&w=384&q=75)
