How AI and Blockchain will Change the State of Insurance (Part 2)
The Handling of Claims
Claims processing will probably still constitute one of the primary functions of insurance companies, even though the number of claims may drop from 70 to 90 percent compared with todays levels. Advanced algorithms will take on initial claims routing, increasing efficiency and accuracy, enabling companies to achieve straight-through-processing rates of likely more than 90 percent and reducing claims processing time from days to hours or minutes.
IoT sensors and many other data collecting devices will likely replace traditional, manual methods of first notice of loss, with repair services and support triggered automatically upon the incidents. In the case of an auto accident, for example, a policyholder may stream a video of the damage, which will eventually be interpreted into loss descriptions and estimate amounts. Self-driving machines may address themselves to repair workshops for service while a self-driving replacement car will be dispatched to the customer. In the home, IoT devices will be increasingly used to monitor water pressure levels in the plumbing system, temperature, and other key risk factors and will actively and smartly alert both tenants and insurers of issues before they practically come into being.
Automated customer service apps will then manage most of the policyholder interactions through voice and text, following self-learning scripts that interface with the claims, fraud, medical service, policy, and repair systems. The turnaround time for resolution of many claims will be measured in minutes rather than days or weeks as it is the case nowadays.
This way, insurance companies will increase their focus on risk monitoring, prevention, and mitigation instead of concentrating too much on claims resolution. IoT and new data sources will be actively used to monitor risks and activate interventions when factors may exceed AI-defined thresholds.
Individuals may even start to receive real-time alerts that may be linked with automatic interventions for inspection, maintenance, and repair. For large-scale accidents claims, insurers may control homes and vehicles in real time using integrated IoT and other devices, so as mobile phone data. If power blacks out, insurers could profile claims by using data aggregators, which collect and compress data from satellites, networked drones, weather services, and policyholder data in real time.
The Bottos AI Ecosystem as a Fuel for the Future
This is just the beginning too — with deep learning & machine learning’s development at exponential rates, their involvement in the insurance world is only going to get stronger and more pronounced. All these innovative applications need a strong blockchain and AI infrastructure to operate safely and seamlessly, in the most efficient way.
Bottos AI ecosystem based on the blockchain technology is at the technological edge to provide the underlying infrastructure to all industries to allow for a new technological disruption. Not only it will provide a safe and lean infrastructure, but with its decentralized data marketplace will also make the advancement of AI technology and applications development faster, at a lower cost.
Bottos is actively creating the new AI ecosystem based on the open-sourced public chain to fuel the next technology revolution, which will deeply impact our daily lives.
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