How AI can breathe new life into Singapore’s insurance industry 

How AI can breathe new life into Singapore’s insurance industry 

The use of Artificial Intelligence (AI) is transforming the auto insurance industry by simplifying claims processes. Sandeep Bhargava, SVP, Global Services and Solutions, Public Cloud Business Unit at rackspace technology tells us how AI-driven computer vision systems are driving these improvements while providing insurers with increased assessment accuracy.  

Sandeep Bhargava, SVP, Global Services and Solutions, Public Cloud Business Unit at rackspace technology

Computer vision technology enables automatic detection of vehicle parts and analyses the type and severity of damage detected. Much of the manual effort associated with traditional claims processing is removed, improving turnaround times. By reducing paperwork and human surveyors’ involvement, insurers save on costs while improving customer satisfaction due to shorter wait times for claim approval or denial decisions. 

How does it work?  

First, a customer uses an app to take pictures of the vehicle in question. The images are processed by a computer vision program to identify the affected parts accurately and the extent of the damage.  

Trained in multiple data points across an enormous number of sources such as previous claims reports and vehicle model specifications, AI-driven algorithms then estimate the cost of damage.  

Insurance companies can also leverage computer vision to detect safety features on vehicles, allowing them to accurately determine a vehicle’s roadworthiness and offer discounts accordingly. In addition, insurers could use facial recognition technology to identify drivers at risk of being in an accident based on their driving history or other factors.  

Computer vision has already revolutionised the auto insurance industry by providing a faster and more efficient way for providers to process claims. With advancements in AI-driven algorithms, it promises even greater improvements in accuracy and cost savings as well as enhanced customer experience with personalised offers based on driver behaviour analysis. 

AI’s vast potential for auto insurance 

AI has huge potential and has been discussed at length – and the possibilities are certainly exciting. According to Bain, AI has the potential to revolutionise the insurance industry in Singapore and the rest of Asia – especially amid the high developmental potential of the region. Insurers can leverage the vast amounts of data available to derive a competitive advantage. By leveraging AI technology, Asian insurance providers can better understand their customers’ needs, develop innovative products that meet those needs and improve operational efficiency. 

One way AI can be harnessed is through apps and digital platforms that improve customer experience. For example, intelligent chatbots can provide round-the-clock support services for customers without human assistance. Insurers are able to respond quickly to customer queries and provide seamless user experiences. They can also analyse customer behaviour to personalise offerings based on individual preferences – leading to higher conversion rates from prospects, who are more likely to accept those offers.  

Another use case for AI is improved risk profiling, giving a more nuanced picture of potential policyholders. By being able to assess road users more accurately than before, insurers will be able to offer lower premiums for risk-averse drivers or charge higher premiums based on individual driving habits. 

Finally, robotic process automation (RPA) can automate back-office operations across multiple processes like underwriting, claims processing and business analytics – allowing insurers to reap substantial efficiency gains over traditional manual processes involving multiple forms, extensive information gathering and processing of tasks. 

Bracing for the future of insurance 

AI is helping companies work faster and smarter by enabling predictive capabilities and automating decision processes to improve business outcomes. However, there’s always the lingering question of what is achievable – as well as business value – and what is just hype. 

This is further complicated for the insurance industry, where it can be difficult to take risks when adopting new technologies. While business leaders know they must undertake crucial tasks such as strategic planning for deployment and developing a comprehensive data strategy – leveraging AI can still be daunting, especially when organisations may not possess the right talent or IT infrastructure. However, the competitiveness of the auto insurance market means that industry players can’t afford not to modernise. 

With the help of established service providers, the growing pains of transformation can be overcome. With the support of providers that redefine data empowerment, organisations can ensure AI works in their favour – unlocking swift document classification and discovering the full breadth of workflow possibilities for increased efficiency and employee productivity. Providers can then leverage this expertise and tap into AI’s transformative potential.  

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