The use of Artificial Intelligence for insurance policy checking has grown by leaps and bounds as AI tools can rapidly compare a high volume of policy clauses and make human reviewers faster and effective.
And why would they not? The technology that helps in automating the review of insurance policies has progressed dramatically over the years. That’s one of the reasons insurance companies are adopting AI-driven policy checking for greater efficiency.
What is Artificial Intelligence?
AI consists of a constellation of related technologies including Machine Learning. It is a subset of AI in which computers use statistical models and algorithms to identify patterns in data without the need for reprogramming. ML makes predictions based on data with the use of techniques such as decision trees.
Another type of machine learning, Deep Learning, loosely mimics the neural pathways in a person’s brain. It is a self-learning model where algorithms attempt to model high-level abstractions in data. Natural Language Processing (NLP) yet another type of machine learning empowers a computer to understand, analyze, manipulate, and generate human language. NLP is quite useful for identifying and tagging phrases in documents.
When is AI better?
The unmatched speed of AI in checking a high volume of policies for accuracy and E&O errors allows it to quickly automate the laborious process of reviewing insurance policies. This is the most significant advantage of using AI in policy checking. It is incomparable when it comes to reducing the number of policies it can review at speed.
Another significant and distinguishing advantage of AI is that the results of the AI tool derived from the data can be validated statistically. The data can be analyzed to estimate the accuracy of a model’s predictions and create a feedback loop of self-improvements.
AI can be especially valuable in flagging policy renewal dates so that they can be checked for changes or errors before regulatory deadlines for policy renewal or revisions. It can monitor contractual obligations by an insured party, including premium payments and changes required such as safety inspection with no human needed to track compliance.
Catch up with savvy insurance customers or get left behind
Insurance customers are not satisfied with most of their service providers. In a recent study by Morgan Stanley and BCG, the report claims that insurance companies provide a poor customer experience (CX). The report goes on to mention that about 60% of insurance clients worldwide aren’t satisfied with their service providers and around 50% of insurance clients are considering the switch to newer models.
Since the COVID-19 pandemic, more consumers are looking at providers with strong digital offerings. A Survey by the PWC reports that 41% of consumers are likely to switch their insurance company for a digital-first company.
Embrace the future of policy checking with Exdion Policy Check
Exdion Policy Check is an automated policy check solution that digitizes and standardizes the entire process of comparing a policy, quote, and binder against a new policy in minutes. It is a purpose-built AI solution for policy checking that is an efficient, cost-effective, and customer-centric approach to review policies for errors and omissions before issuance.
Automated policy checking capabilities using advanced AI and machine learning, combined with insurance-focused vocabularies are the future. Exdion Policy Check is an automated, on-demand service that empowers brokers and agents to focus on policy reviews.
It ensures appropriate policy coverages are in place, terms and conditions are accurate and the risk of errors and omissions is reduced. The automated solution can also replace traditionally manual processes, lower policy checking costs and turnaround times and drive operational efficiency.
Until now, agencies had to hire more employees or outsource manual policy checking to validate lengthy policies for accuracy. This costly, and error-prone process, which could expose insurance agencies to unnecessary E&O risk is time-consuming.
Exdion Policy Check helps brokers and agents systematically check policies for potential errors and omissions before issuance.
