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Insurance innovations improving the customer experience

AUG. 16, 2021

Insurance innovations are changing the way insurers and their customers interact with one another. Through these innovations, insurers can provide a more integrated, seamless and digital experience for the businesses they serve.

Application programming interfaces (APIs)

APIs allow different apps and services to work together in various ways. Effectively, an API can be thought of as a computing interface that helps multiple, disparate types of software communicate with one another.1

For example, when using a mobile application like Facebook, a user’s phone connects to the internet and sends data to a server. The server then interprets that data, performs any necessary actions and presents the data back to the end user in a readable way. This all happens within an API.2

In the insurance space, APIs are being used to digitize an insurer’s operations to create a seamless, omnichannel experience for customers. Specifically, APIs can be used to:

  • Serve personalized insurance quotes digitally.
  • Process policies digitally, enabling quick and seamless interactions between insurers and their insureds.
  • Connect with and search carrier markets, allowing providers to easily find the appropriate coverage for their clients.
  • Improve integration with internal and third-party systems, helping insurers find efficiencies in their claims management processes.
  • Connect systems to insurance shopping comparison sites, providing quotes to prospective customers.

APIs are robust, flexible tools—tools that will continue to improve and automate the process of buying and selling insurance.

Artificial intelligence (AI)

In simple terms, AI allows computer systems and programs to simulate intelligent behavior. Effectively, AI refers to instances where machines are programmed to think and learn like a human.

From a business perspective, AI could be invaluable, as it can be used to gather worksite data on injuries and accidents, forming a profile of each job task and isolating specific risk factors.3 This is especially useful for identifying and preventing common claims. In a study from the Centers for Disease Control and Prevention, AI determined the cause of 1.2 million claims over the course of just three hours. If done manually by a human, this same task would take nearly 4.5 years.4

Simply by speeding up the process of identifying potential claims issues, researchers, insurers, brokers and employers can get to the root cause of incidents quicker, which can help lower costs. Additionally, when claims data is processed quickly, it allows stakeholders to use the most recent data when they examine specific injuries and their causes.

From an insurer perspective, AI has the potential to make certain processes much more efficient. For instance, AI-powered chatbots could allow insurance buyers to ask questions about their coverage or even secure a policy 24/7. AI can even be used to create a personalized experience for customers based on their behaviors and habits.5

According to one report from PwC, AI will initially help improve efficiencies and automate existing customer-facing underwriting and claims processes. However, as the technology develops, the impact of AI could be much more profound, helping insurers identify, assess and underwrite emerging risks.6