This post is part of a series sponsored by AgentSync.
Advances in technology have breathed new life into the slow, inefficient processes common in the insurance industry. While the influx of AI-driven systems has some employees worried about job security, there are many reasons why the human touch remains a critical part of insurance.
Automation is on the rise in all industries
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7;ve all heard it said before that sooner or later robots will rule the world. Believe it or not, the facts seem to paint the same picture that no industry is safe from automation. It is estimated that AI will replace 85 million jobs around the world by 2025. While this is great news for consumers who will no doubt celebrate the increased efficiency automation brings to their everyday lives, what does this mean for those whose jobs are at risk?Well, what if the question on employees’ minds wasn’t, “How soon will robots take our jobs?” but rather, “How can we work with robots to better serve our customers?” That way, the conversation around AI doesn’t have to end in us versus them.
People should not be replaced by technology, but empowered by it; in consumer-oriented industries like insurance, the human touch is still very necessary.
The growing use of AI in the insurance industry
You might be thinking, AI in the insurance industry…really? Sure, historically this industry isn’t exactly known for its technological innovation, but as Bob Dylan once sang, the times they change. As it stands, 21 percent of insurance organizations report that they are currently preparing their staff to adopt AI-based systems. AI has revolutionized the insurance industry, which was once known to be full of time-consuming tasks and manual inefficiencies.
The automation revolution has proven beneficial in helping insurance companies grow, save money, reduce fraud and increase efficiency. However, relying too much on technology and completely removing the human touch from insurance processes can be harmful.
The truth is that only a human can understand the true extent of a customer’s needs and the emotions behind each sale. There are several areas of the insurance industry that actually benefit from human/machine partnerships.
4 areas of the insurance industry that benefit from AI, but still need the human touch
1. Fraud
Technology is already helping us stop fraudulent activity in the insurance industry before it becomes a bigger problem. AI-powered fraud detection systems can memorize patterns and alert users to suspicious activity. For insurers handling sensitive data, the extra level of security can help build trust with customers.
But while AI-powered systems can alert users to fraudulent activity, they don’t actually catch the fraud. That role is still up to the people. Once a system has signaled suspected fraud, individuals must still act on this knowledge to actually stop the fraud from occurring and determine whether the activity is truly fraudulent. Then the humans running the system can feed that knowledge of the fraud attempt back to the AI-powered system to improve its accuracy the next time something fishy happens.
2. Claims processing
Claims handling is full of labour-intensive, low-value tasks which in many cases are still carried out manually. This not only wastes employees’ time, but it can also result in human error and additional costs. For these reasons, insurance companies can and should strengthen their use of technology to settle claims faster and more accurately, and at a lower cost to the business.
In the increasingly automated world, personal involvement when a client needs it most can act as a differentiator. A customer’s experience throughout the claims process is critical to an insurer’s retention and growth.
While AI-powered technology should be used to relieve insurer staff from time-consuming tasks, it should not completely replace the human aspect of claims management. Instead, technology should arm professionals with the tools they need to speed up claim resolution, giving them more time to build customer relationships.
3. Introduction of producer
The insurance industry is currently facing a talent crisis, making it difficult for companies to find and retain good producers. As recruiting becomes increasingly competitive, agencies with outdated producer onboarding processes risk losing talent to competitors who can offer a more efficient experience.
If your approach to producer onboarding is riddled with siled data, disconnected processes, and compliance failures, it’s probably time for an update. AI can be a powerful tool in the onboarding process, especially when it comes to new employee paperwork, IT setup and training.
While technology can help attract new producers and get them selling faster, it should never replace a genuine human welcome to the company. When it comes down to it, HR is about people. Completely removing the human element from the onboarding process is not the best way to show new employees how excited you are to have them on your team.
4. Customer communication
In the early stages of the Covid-19 pandemic, businesses across all industries found grace as they learned to adapt to new contactless, fully digital ways of working. Almost three years into it and many customers now expect companies to offer digital options or add-ons to their services.
These days, customers communicate via email, video calls, submission forms, and even text. AI-powered chat boxes are an easy way for customers to get answers quickly. Online communication makes it easy to send and receive information anytime and almost anywhere.
There’s no denying that AI has improved the client experience, but there’s one big area where it falls short: human connection. Insurance customers still want and need expert help from independent agents. No one customer is exactly the same and it takes a real person to fully understand each policyholder’s unique needs.
Make room for partnerships between humans and machines
The insurance industry is in a unique position. Insurance professionals have the chance to combine best-in-class technology with their best people to offer faster and more accurate service to their clients.
Just as refusing to embrace technology will limit agency growth, so too will taking people out of the equation. Only companies that find ways for employees to use technology to their advantage will be able to provide the efficient and personalized services that their customers demand.
If you’re ready to see how AgentSync can empower your team with efficiency and precision, schedule a demo today and let us show you what better looks like.
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