The car insurance process has always been a cumbersome task in India. The advent of Artificial Intelligence and its application in the insurance sector can be of tremendous help for a layman opting for an insurance policy for his vehicle. Insurers are finding ways to make it easier for the customers to transact with them, and also focusing on paperless claims as well.

Insurance companies in India are collaborating with tech companies to develop system-based applications for their businesses. The primary focus is to ease their complicated processes.

Some of the advantages of using  AI are:

  • Streamlining Operations:
  • AI has been proven to benefit insurance companies in streamlining its general insurance operations and handling claims and other queries of their customers in an effective manner, thus saving much money of the insurers, making their life simpler as policy holders.
  • A classic example is that of a smartphone app whose development is on its way. Features this smartphone app include:
  • This system-based application would render buying or renewing policies, making repair claims anytime, anywhere with few clicks of your smartphone device.
  • Renew lapsed policies: For renewing lapsed policies, customers can take images of their vehicles and upload them on the app. With artificial intelligence (AI) and machine learning, the photos get divided into frames; the damages can be identified more accurately. The judgement is swift and accurate.
  • Make repair claims – Currently, when a customer claims for the damage of his vehicle in an accident, the car is examined first by a service engineer, based on the assessments and estimations for the damage, the insurance personnel approves, modifies or rejects individual parts of the estimate.
  • Under the AI driven process, a customer will upload the images of the car’s damage in the system. The inbuilt system will then identify all the parts of the vehicle for different types of damages (cracks, scratches) and will estimate the overall cost quickly using historical data.
  • Using this app, a customer can file claims anytime, anywhere, and they would receive estimates within no time.
  • This app would also serve as an aid to insurance inspectors. Rather than focusing on all claims, the inspectors would be able to focus on complex claims such as a head on collision and arrive at a proper judgment in such cases.
  • Communication made simple
  • The use of chatbot technology with AI by some companies is an innovative way to communicate with the customer and offer simple solutions to their complex queries. Thanks to AI, claims management is now at a pace faster than the traditional systems.
  • Prevention of frauds
  • Detection of fraudulent activity is now possible with the help of AI. The machine learning and historical data serve in developing patterns at an intense level that is not possible from a human point. Such patterns help in the early detection of frauds.