{"id":12705,"date":"2021-08-25T06:59:23","date_gmt":"2021-08-25T06:59:23","guid":{"rendered":"https:\/\/www.esds.co.in\/blog\/?p=12705"},"modified":"2021-08-25T07:26:06","modified_gmt":"2021-08-25T07:26:06","slug":"how-ai-and-machine-learning-reinvigorate-the-insurance-industry","status":"publish","type":"post","link":"https:\/\/www.esds.co.in\/blog\/how-ai-and-machine-learning-reinvigorate-the-insurance-industry\/","title":{"rendered":"How AI and Machine Learning Reinvigorate the Insurance Industry"},"content":{"rendered":"\n<p style=\"text-align: justify;\">Like every other industry, data has also been the core of the insurance industry. Over the due course of time, what actually has changed is the amount of data and the speed at which machines are processing it for driving useful insights. Data-driven insights play a vital role in boosting this industry by making decisions based on facts, figures, and user patterns. Insurance providers adopt <strong><a href=\"https:\/\/www.esds.co.in\/artificial-intelligence\">Artificial Intelligence<\/a><\/strong> (AI) &amp; Machine Learning (ML) technologies to enhance the end-user experience, develop improved solutions for increasing operational efficiency, and build accurate underwriting models.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.esds.co.in\/blog\/how-ai-and-machine-learning-reinvigorate-the-insurance-industry\/#Defining_Machine_Learning\" >Defining Machine Learning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.esds.co.in\/blog\/how-ai-and-machine-learning-reinvigorate-the-insurance-industry\/#AI_ML_in_Insurance_Industry\" >AI &amp; ML in Insurance Industry<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.esds.co.in\/blog\/how-ai-and-machine-learning-reinvigorate-the-insurance-industry\/#How_AI_Technology_is_Transforming_Insurance_Industry\" >How AI Technology is Transforming Insurance Industry<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Banner-img-1.jpg\" alt=\"AI and Machine Learning\" class=\"wp-image-12706\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Banner-img-1.jpg 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Banner-img-1-300x157.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Banner-img-1-1024x536.jpg 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Banner-img-1-150x79.jpg 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Defining_Machine_Learning\"><\/span><strong>Defining Machine Learning<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p style=\"text-align: justify;\">Machine Learning is an application of <strong><a href=\"https:\/\/www.esds.co.in\/artificial-intelligence\">Artificial Intelligence technology<\/a><\/strong> that allows computer systems to deploy algorithms for learning and improving my experience. Such algorithms are used for building mathematical models which can be used as training data, allowing systems to make decisions &amp; predictions.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_ML_in_Insurance_Industry\"><\/span><strong>AI &amp; ML in Insurance Industry<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img4.jpg\" alt=\"\" class=\"wp-image-12707\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img4.jpg 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img4-300x157.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img4-1024x536.jpg 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img4-150x79.jpg 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<p style=\"text-align: justify;\">AI and ML technologies make it easier for insurance providers to use the data at their desired pace and way. Many organizations in this industry have access to data that is usually structured and stored in databases. Driving insights out of unstructured data is becoming a major challenge for insurance providers. However, AI &amp; ML technologies offer a lucrative opportunity to the insurance industry for gaining timely and actionable insights out of both- structured and unstructured data.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><a href=\"https:\/\/www.esds.co.in\/contactus\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"180\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-7.jpg\" alt=\"\" class=\"wp-image-12714\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-7.jpg 700w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-7-300x77.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-7-150x39.jpg 150w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/figure><\/div>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_AI_Technology_is_Transforming_Insurance_Industry\"><\/span><strong>How AI Technology is Transforming Insurance Industry<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p style=\"text-align: justify;\">Following are some core areas where <strong><a href=\"https:\/\/www.esds.co.in\/artificial-intelligence\">Artificial Intelligence Technology<\/a><\/strong> is playing a significant role in transforming the Insurance Industry-<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Improved Customer Service<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">The insurance industry is extensively using chatbots developed by <strong><a href=\"https:\/\/www.esds.co.in\/\">Top AI companies<\/a><\/strong> to resolve customer queries round-the-clock.&nbsp; Besides resolving queries, these bots are also used for handling customer complaints and grievances, customer quotes, etc. These bots can be easily integrated across channels like websites, social media platforms to engage more customers through their desired communication platforms.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/piechart-2.jpg\" alt=\"Top AI companies\" class=\"wp-image-12708\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/piechart-2.jpg 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/piechart-2-300x157.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/piechart-2-1024x536.jpg 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/piechart-2-150x79.jpg 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Ai-_-Ml-In-Insurance-Industry-1.gif\" alt=\"AI Technology\" class=\"wp-image-12709\"\/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Fraud Detection and Prevention<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">As per an online <a href=\"https:\/\/www.fbi.gov\/stats-services\/publications\/insurance-fraud\"><strong>international report<\/strong><\/a>, the insurance sector incurs about <strong>$40 billion<\/strong> as the total insurance fraud cost. By adopting AI &amp; ML technologies, the insurance providers can deeply analyze historical data and determine patterns that can be used beforehand to detect frauds at the early stages.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img3.jpg\" alt=\"Fraud Detection and Prevention\" class=\"wp-image-12710\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img3.jpg 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img3-300x157.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img3-1024x536.jpg 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/img3-150x79.jpg 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<p style=\"text-align: justify;\">Deep Anomaly Detection is a well-established ML application that is used for detecting frauds. By analyzing large data volumes, <strong>AI technology-based<\/strong> software is being used for creating insurance claims models. Any difference in the traditional claims is marked as fraud, allowing insurance companies to cut down costs associated with frauds and gain superior results.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Better Management of Claims<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">Claims Management is an indispensable component of the insurance industry; however, it can be tiring. Setting a claim includes processing huge data volumes and interacting with stakeholders. <strong>AI technology<\/strong> applications can be used to automate critical processes like routine data checks and interactions and free up the insurance providers to make sure they focus on essential tasks.<\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube aligncenter wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ESDS Managed Services | Managed Service Provider | Cloud Managed Services | ESDS\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/QGGcPDnlkQo?feature=oembed&#038;enablejsapi=1&#038;origin=https:\/\/www.esds.co.in\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p style=\"text-align: justify;\">Another significant benefit of using ML applications in claims management includes the enhanced security of customers\u2019 data. With such advanced technologies in place, insurance companies can make the claim management process faster and smoother.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Easy Handling of Risk Management<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">Predicting premiums and losses for policies is one of the common problems that insurers face. When risks are identified pre-hand, they can create plans that take action before a risk takes place. Risks identified through Machine Learning are helping the insurance sector by accurately using the time of underwriters, hence making the entire process less complicated. Machine Learning also helps get detailed insights into emerging frauds, credit-linked risks, and changing regulations. The insurance team can detect credit risks highly accurately through rich analytics and pattern prediction capabilities.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Adherence to Regulatory Compliances<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">The regulatory and compliance system of the insurance industry is considered to be complex and highly dynamic. A significant challenge that insurance companies incur is keeping up with the regulations and incorporating the changes to policies. Policies like GDPR and Data Localization demand increased data protection and privacy for insurers. NLP technologies can help scan internal policies and claims documents and verify their compliance with multiple regulations.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><a href=\"https:\/\/www.esds.co.in\/contactus\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"180\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-8.jpg\" alt=\"\" class=\"wp-image-12713\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-8.jpg 700w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-8-300x77.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/Artboard-2-copy-8-150x39.jpg 150w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Insurance Analytics Market<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align: justify;\">The global insurance analytics market is predicted to reach <strong>$20.6 billion by 2026<\/strong>, rising from <strong>$8.8 billion in 2020<\/strong>. During the forecasted period, this market will grow at a CAGR of <strong>15.1%.<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"373\" height=\"219\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/image.png\" alt=\"Insurance Analytics Market\" class=\"wp-image-12711\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/image.png 373w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/image-300x176.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/08\/image-150x88.png 150w\" sizes=\"auto, (max-width: 373px) 100vw, 373px\" \/><figcaption><a href=\"https:\/\/www.marketsandmarkets.com\/Market-Reports\/insurance-analytics-market-58298536.html\">Source<\/a><\/figcaption><\/figure><\/div>\n\n\n\n<p style=\"text-align: justify;\">This market growth is attributed mainly to the increased focus on enhancing the end-user experience and the growing digitalization trend. However, evolving cyberattacks and their related threats can hinder this market\u2019s growth.<\/p>\n\n\n\n<p><strong><em>Concluding Words<\/em><\/strong><\/p>\n\n\n\n<p style=\"text-align: justify;\">The insurance industry is already involving and with the introduction of <strong>Artificial Intelligence<\/strong> and Machine Learning technologies, insurers can definitely provide more personalized solutions. These solutions are also helping the insurance companies to stay ahead of their competitors through increased work efficiency and productivity.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2021\/02\/ESDS-1.jpg\" alt=\"ESDS\"\/><\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Like every other industry, data has also been the core of the insurance industry. Over the due course of time, what actually has changed is the amount of data and the speed at which machines are processing it for driving useful insights. Data-driven insights play a vital role in boosting this industry by making decisions&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/www.esds.co.in\/blog\/how-ai-and-machine-learning-reinvigorate-the-insurance-industry\/\" class=\"gdlr-button small excerpt-read-more\">Read More<\/a><\/p>\n","protected":false},"author":61,"featured_media":12712,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1505],"tags":[1810,2742,2740,2736,1831,2741,2739],"class_list":["post-12705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-ai","tag-ai-ml-technologies","tag-ai-in-insurance-industry","tag-ai-technology","tag-machine-learning","tag-machine-learning-ml-technologies","tag-machine-learning-in-insurance-industry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/12705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/comments?post=12705"}],"version-history":[{"count":5,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/12705\/revisions"}],"predecessor-version":[{"id":12722,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/12705\/revisions\/12722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media\/12712"}],"wp:attachment":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/categories?post=12705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/tags?post=12705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}