The summer vacation season is approaching. As the time for a well-deserved holiday draws near, the insurance industry sees a significant increase in claims. Summer vacations are relatively expensive for insurers, mainly due to additional claims on travel insurance, unexpected medical costs, and extra damage from theft or extreme weather. Meanwhile, the employees of the insurance companies themselves are also on vacation. Effectively managing these peaks can make a considerable difference in customer satisfaction and operational efficiency. This phenomenon occurs every year, so how can the industry tackle it smarter? Generative AI (GenAI) offers various ways to streamline processes and improve service.
Automated claims processing
One of the biggest challenges during the travel season is processing claims. The first simple application of GenAI begins here. If a claim meets all business rules, GenAI can automatically process the claim. If not, it is flagged as potentially fraudulent and reviewed by a human. This not only speeds up the process, resulting in higher customer satisfaction but also reduces the workload on human employees, allowing them to focus on more complex matters.
Prioritization through integration
Once data and processes are integrated on a platform, along with user interaction, GenAI can truly get to work. For example, GenAI can recognize a customer’s emotions during a phone call. This helps prioritize urgent cases and reduces waiting time, especially for those who are nervous, angry or emotional.
Companies can capture their employees’ knowledge and skills within the platform. GenAI can then determine the best employee to speak with based on content expertise or seniority, especially when a customer’s emotions are running high. You can further refine this by integrating it with tools like Microsoft Teams to check if an employee is available at that moment.
Make it personal
Additionally, insurers can use GenAI to proactively communicate with customers, sending personalized reminders and recommendations. GenAI can recognize situations and, for example, alert travelers to potential risks at their destination and propose relevant coverage options. Furthermore, AI-driven insights can help insurers identify customers who may benefit from policy upgrades or additional services, creating cross-selling opportunities.
Chatbots and virtual assistants are another familiar example. These AI-driven tools can handle many questions simultaneously. They provide direct answers to frequently asked questions about policy details, coverage and claims procedures.
Prevention is the best medicine
Reduce claim peaks in advance through dynamic pricing and risk assessment. GenAI can analyze data to assess risks and adjust premiums accordingly. During peak travel periods, GenAI can evaluate factors such as destination safety, traveler demographics and historical claim data to offer personalized pricing. This helps insurers remain competitive while ensuring travelers are adequately covered.
Summer returns every year, so why shouldn’t GenAI learn a few lessons for us? Nowadays, we have advanced technology. AI can converse with people, and we don’t even realize it’s not a human on the other side! Yet, adding a single claim rule takes weeks, especially for a modification procedure. This slow pace is mainly the result of complex IT landscapes. Ultimately, these costs partially fall on the shoulders of customers.
By leveraging GenAI capabilities, insurance companies can effectively manage the seasonal spike in travel insurance requests and potentially discover new business opportunities. Implementation of GenAI-driven solutions ensures that insurers can efficiently meet increased demand during the travel season while maintaining high standards of service and reliability.
Would you like to know more about GenAI opportunities for insurance? Get in touch:
Stephan de Jong
Director Financial Services
T: +31625058135
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