More Insurers Turn to AI for FNOL

Posted on

June 5th, 2017


aiMany industries make use of Artificial Intelligence (AI) for basic customer service tasks. This frees up associates’ time to help customers with details that are more complex. This improves the customer’s experience and boost their loyalty. It is no surprise that AI is making headway in the insurance industry as well.
However, AI is not without its limitations. Issues such as imperfect speech recognition, incomplete historical data, and a general distrust of artificial intelligence programs prevent insurance companies from fully embracing the technology. For now, those companies that do use AI only do so for tasks their mobile apps or web portals can accomplish. For example, several insurers now make use of virtual assistants for their chat portals.

A Need for More Data

The largest hang up by far is a lack of claims data. AI programs cannot make informed decisions without historical information. Once companies have amassed enough data, AI can make decisions to speed up the claims process. For example, AI could handle first notice of loss (FNOL) and file the necessary information much faster than an agent can. This would allow insurance agents to skip to the next step in the claims process. The faster an insurance company resolves a claim, the happier their customers are.

Speech Barrier

The next problem halting a full AI integration is inadequacies in speech recognition. Speech recognition programs do not understand idioms or long, involved sentences. However, most individuals do not speak in a concise manner after an incident. Fortunately, technology is catching up to this; however, until it is fully functional, insurance companies will only trust AI to perform simple tasks.

Legacy Systems

The main goal of incorporating AI is to improve the customer’s experience by speeding up the claims process. The final obstacle to this is legacy systems. Many insurance companies rely on dated programs and technology to complete their claims process. Some tried retrofitting their data to work with newer technologies, but this provides limited functionality. Actec can help insurers overcome these issues by implementing in-house solutions to improve claims management. This includes complete FNOL tracking, escalating claims when necessary, call logging, and many other features. Contact the experts at Actec to learn more.