AI for Insurance Companies
When people hear the phrase “artificial intelligence,” their minds often go to examples like self-driving cars, and do not realize that AI has many uses for businesses of all sizes. Uses that are non-physical and do not involve robots, it should be stressed.
For insurance companies, much of the work involved in the industry can be repetitive, or just data- and research-heavy. From lead generation to providing quotes, a lot of daily tasks are as data-dependent as they are intuitive.
Other tasks, like customer experience management, are helpful but time-consuming, and can use assistance from AI to give workers more time to work on more human-essential tasks. This is what is important to understand about AI, which is that oftentimes it exists for the purpose of assisting, rather than outright replacing, human workers, though this sometimes takes the form of automating an entire task that is part of a human’s job.
This article will be the first in a series about AI and insurance that will cover how AI can assist in the areas already mentioned, and then some, showing how an insurance company can incorporate AI solutions to create a more efficient atmosphere. All of the AI solutions mentioned throughout are offered by Findability Sciences. Findability Sciences has partnered with a leading life insurance company to offer them AI-powered solutions, so you can trust that digital transformation in insurance is a safe bet.
This piece is about a process that most insurance companies dread, yet cannot avoid at times, which is the investigation of claims that are possibly fraudulent.
Detecting Fraudulent Insurance Claims
Any police procedural TV show makes it clear that finding evidence of guilt is a costly and time-consuming process. To follow every lead or suspicion would effectively blow the funds of any police station, and the same principle applies to insurance companies considering conducting the lengthy and costly procedure of investigating a potentially fraudulent claim.
Unfortunately, many insurance companies like to stick the more human-dependent Columbo method rather than a more high-tech and modern CSI method, which is resulting in fraudulent claims slipping by without an investigation, or the wrong ones being investigated. Too much subjective, gut-feeling decisions, and not enough data analysis, inform the decisions in even the top insurance companies’ offices.
This is where AI can come in. Findability’s AI-powered prediction platform, Predict+, has helped the aforementioned life insurance company predict the likelihood of insurance claims being fraudulent and decide whether or not to investigate a claim in 10% of cases.
Using both your company’s internal data, including useful information like the details of previous cases of fraud, and external resources, such as statistics about insurance fraud.
AI Makes Better Use of the Data
Okay, maybe the Columbo crack made earlier in this article does not accurately represent your investigations process. You might already be contrasting a suspicious claim with past instances of fraud, seeing if there are tell-tale signs that make it clear that fraud is afoot.
AI does this same thing for you, only with a greater capacity for the amount of data analyzed and the speed of that analysis. Thanks to the indefatigable nature of computers, they can do this work with laser focus, undistracted, and at any time. This is especially important in insurance, when any single claim can come with a wealth of data, from the visual to the numerical, for an agent to pore over. Thanks to computer vision, AI agents are able to analyze any form of data, be it a photo or an audio recording.
Outside of the improved speed and efficiency, AI is also much more adept than a human at discovering patterns across data sets, finding connections between fraudsters that the human eye may miss. For example—and this is just a speculative example, not a discovered truth about insurance fraud—, Findability’s prediction platform may find a pattern among fraudulent work injury claims that, generally, the number of other people involved in the claim is lower than in actual cases, showing that fraudsters want to quietly collect money rather than get more people involved.
Insurance fraud is a plague on the industry, but unless someone devises a way to get humanity to quit lying for financial gain, then it will always be a problem to deal with. However, detecting fraud has gotten much easier thanks to prediction platforms offered by companies like Findability Sciences.