Artificial Intelligence Is Poised to Play a Key Role in Preventing a Costly Car Insurance Crime
A survey from the Coalition Against Insurance Fraud and Shift Technology found that 75% of respondents believe that artificial intelligence (A.I.) will have the greatest impact on car insurance claims and fraud detection in the next five years, according to Insurance Journal.
Even more survey respondents—in fact, nearly all of them—said they are already using anti-fraud technology. More than half of those surveyed specifically stated using A.I. technology as part of their anti-fraud plan for car insurance.
But what exactly is A.I., and why do so many believe it’s about to have a huge impact on the car insurance industry?
AI technologies will play a huge role in the car insurance industry | Twenty20
Analyzing the data to help car insurance companies
A.I. is basically the idea that a computer can learn, behave and think like a human. By interpreting data, A.I. can use what it has learned to perform different tasks. Machine learning allows A.I. to interpret and analyze data in a productive way.
A.I. is already being used everywhere in our everyday lives—like when streaming services recommend a new show, for instance. It’s also already being used in health care, education, human resources, financial services, and more.
And now, the car insurance industry is just beginning to see the benefits of using A.I.
How car insurance companies can use A.I. to prevent fraud
According to Bankrate, insurance fraud costs the industry more than $40 billion per year. To prevent that loss, insurance companies are using A.I. to detect car insurance fraud and prevent risk.
How does it work? Simply put, A.I. helps car insurance companies pinpoint abnormalities in claims data.
By identifying false information used by customers to get lower premiums or a bigger claim payout, A.I. can be extremely helpful in stopping fraud before it happens, which could ultimately save both car insurance companies and consumers money.
A.I. and car insurance automation
A.I. is also being used for claims processing in car insurance. With A.I., the claims process can be automated to reduce the amount of manual labor, making it faster, personalized, and more efficient. For instance, an app called MDgo provides accident detection and response technology.
In fact, MDgo CEO and Co-founder Itay Bengad says A.I. data can be used to improve the level of service personalization for car insurance. This, in turn, may impact a carrier’s expenses and customer retention.
By automated the claims process, A.I. streamlines the time needed to process claims, reducing the process down from several days to hours or even minutes. It also allows car insurance companies to provide more customized contracts.
Save and compare with Jerry
Jerry is another app that utilizes A.I. for car insurance. Jerry’s free app compares quotes from up to 45 different insurance companies for you in under a minute, without any long forms to fill out.
Jerry also sends you quotes to compare with your current coverage, and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.