3 More Machine Learning Benefits for Insurance Companies
My previous blog post in this series highlighted three machine learning business benefits for insurance companies. Here are three more:
Greater Efficiency via Chatbots
Powered by machine learning, chatbots automate tasks normally performed by humans, more efficiently and accurately. Chatbots can perform tasks such as connecting a customer to policy, changing a password or checking an account balance, freeing up agents to focus on areas of customer care best performed by humans (such as high touch, complicated decision-making that’s not as easily handled by a machine). Machine learning and cognitive computing also empower the chatbot to know what it can and cannot do, and to pass interactions on to human agents when it has a low level of confidence in providing the correct solution. The lowered wait times increase customer satisfaction.
With the proliferation of Internet of Things (IoT) technologies, such as Fitbit devices, insurers can move beyond simply offering after-the-fact insurance options and instead provide preventative offerings based on customer behavior and desires. Using machine learning, insurance companies can identify potential health issues and offer recommendations, such as “Get a medical checkup now,” or “Increase your exercise frequency.” Predictive and preventative technologies can be used to limit house fires and flooding based on available weather pattern data, for example, and provide greater security against criminal activity and loss of possessions.
Machine learning is already being used to analyze driver data to identify new business opportunities. Progressive Insurance in the U.S. is leveraging machine learning algorithms using a mobile app in customers’ vehicles for predictive analytics, based on data collected from drivers. The app collects massive amounts of driving data from drivers who plug the device into their cars to allow it to collect data. Customers are given a discount on their auto insurance, in return for using the app, which enables the company to leverage their data to develop new offerings and offer the customer the most cost-effective policy based on the data collected.
For additional information, please check out my NEW white paper: Learning about Machine Learning. It examines the upcoming challenges, presents mini-case studies, and how insurers can maximize the upcoming opportunities.