AI in Auto Insurance

AI may allow car insurance companies to keep up with an evolving consumer base that is looking for faster service, faster payouts, and policy prices tailored to them.

This article intends to provide business leaders in the auto insurance space with an idea of what they can currently expect from Ai in their industry. We hope that this article allows business leaders in auto insurance to garner insights they can confidently relay to their executive teams so they can make informed decisions when thinking about AI adoption. At the very least, this article intends to act as a method of reducing the time business leaders in auto insurance spend researching AI companies with whom they may (or may not) be interested in working.

Register Your Details

Claim Assessment:

The user can take a photo of their vehicle damage using their smartphone camera or upload photos of the damage into the software. Then, AI Model  compares the uploaded image of the damage to a database of images labeled as various severities of damage. These images might also be labeled with likely repair costs. Then the application produces a report for the user on the damaged parts, a repair plan, and the accident’s impact on the user’s premiums in the years following the accident. The AI “assessed” the damages and handled the claims in six seconds. The human claims adjusters apparently took six minutes and 48 seconds to reach their conclusions.

Policy Pricing :
Machine Language model analaysis as the year and car make and model, as well as less traditional data points such as the policy holder’s profession, credit history, spending habits, and driving habits. Then the software provides a score between 300 to 700, where 700 means the driver is low risk. A more accurate depiction of the customer and their lifestyle could allow insurance companies to offer more tailored rates to customers, allowing low-risk drivers to receive discounts and allowing the insurance company staying competitive.

What Business Leaders in Auto Insurance Should Know

The data that they collect for these companies can and likely will be used to train machine learning algorithms. In doing so, companies might be able to better predict the risk of its customers and offer tailored pricing to them.

Many auto insurance companies claim that a large pain point for their customers occurs when filing claims. Insurance companies report that negative claims experiences will cause customers to change insurance providers. Additionally, the claims process causes the largest number of negative experiences, so it would seem to behoove leadership to find solutions that would make the claims process as smooth and enjoyable as possible. AI may prove to be a more scalable way to reduce friction through instant customer support via chatbots and faster claims assessments through AI.



Zsystems AI Team