Property and casualty insurance companies are pouring billions of dollars into artificial intelligence programs to streamline their operations, but there’s a return on these investments they weren’t bargaining for: consumer mistrust.
Executive Summary
Executive Viewpoint: Customers remain skeptical of AI, so insurance companies need the time to clearly communicate exactly how AI is being used and how it amounts to better coverage with fewer delays instead of relying on vague claims about innovation and high-tech jargon, writes Umakant Narkhede of Infinite Computer Solutions' Insurance Unit.Here, he provides specific examples of what insurers can say to demonstrate that AI leads to faster claims processing, fairer pricing and more personalized service.
People shopping for the right insurance plan are surprisingly likely to take their business elsewhere if they learn that an insurer is using AI. This is often because they have little idea how the technology is being used and often assume the worst, such as wondering whether it’s just a cold, calculating machine making important coverage decisions.
P/C insurers can reverse this trend if they stop relying on vague claims about innovation and leave off with the high-tech jargon. They can instead take the time to show consumers exactly how AI is being used and how it amounts to better coverage with fewer delays, more responsiveness and less waste.
