Harnessing the Power of Data with AI in Auto Insurance
Data is transforming the way we live and how consumers engage with service providers.
Now is the time for the insurance industry to leverage AI technology to unlock the power of data and provide personalized services that customers demand to retain them as loyal customers.
AI technology provides insurers with the data that is needed to streamline the claims process, while reducing costs to pass savings off to customers. Leveraging data from advanced technologies to better understand drivers and accidents drives customer retention, brand loyalty and savings.
The global automotive AI market share is touted to increase by USD 10.73 billion by 2024. Additionally, a compound annual growth rate of 37% indicates the industry’s dynamism to innovate and ride the first wave of this new trend.
All the AI driven Intelligent systems such as Computer Vision , AI based data analytics , AI Hardware and Software , Simulation software’s, Mapping technologies are all accelerating the adoption.
In the Auto Insurance sector -ADR systems(Accident Detection and Response ), powered by AI technology and machine learning capabilities, has huge potential for data applications beginning from the moment a crash occurs.
Advanced machine learning algorithms are used in tandem with physical sensor devices installed in the vehicle to accurately detect crashes as they happen. In order to address one of the most significant pain points of insurers, which is accurate and real time first notice of loss (FNOL), which is driven by a low false negative and false positive rate.
The sensor alerts and makes sure no accident /event goes unattended. Following which the machine learning system gets a clear picture of the event which makes it possible to get rid of the chance of false positives and at last, once a crash is detected, the damage and injury insights are provided using deep learning models, making it possible to deliver insurers detailed crash reports in real-time.
Having crash data readily available allows insurers to automatically make recommendations for recovery. For example receiving a message from the Insurer right after the accident letting you know a tow truck is on the way and details of the nearest bodyshops.
Personalizing recommendations based on data could save insurers money during the claims process as they guide customers to supported garages and gain a clear picture of the accident the moment it occurs, which also delivers personalization value.
With all these innovations , AI clearly has the potential to transform the Auto Insurance business with the use of Data.