2018 has been the year of artificial intelligence, as experts across all industries are preparing for the changes this technology will bring to their market.
The auto industry is no different. As autonomous vehicles powered by AI become more widely available, auto insurance―specifically, types of policies and pricing models―will change drastically.
Despite fears of a negative impact on the auto insurance industry, AI will enable human workers to operate more efficiently -- as long as companies adapt and change with the technology. According to Emerj, a leading AI technology publication, here are three major ways auto insurance professionals can embrace and prepare for the growth of artificial intelligence.
1. Behavior policy pricing will become the norm.
Insurance companies have long adjusted auto policies based on a driver’s history and behavior. However, smart technology and AI may transform auto insurance companies into hardware companies to get real-time behavioral data. As auto insurance companies start utilizing smart sensors, they will reward safe drivers with lower payments, while risky drivers will see higher prices.
2. Customer personalization will attract buyers.
Many companies have already implemented AI in the form of chatbots to interact with customers without human input. Kate, Geico’s new virtual assistant, is just one such example. As AI improves, companies will rely on machine learning to interact with customers and create custom, personalized sales packages.
3. Claims can be settled faster.
As more auto insurance providers rely on online interfaces and virtual claims adjusters, claims processing will become much more efficient. Settling and paying claims can happen much sooner after an accident occurs, thereby decreasing the likelihood of fraud.