Insurance business processes involve massive amounts of data, and proper decision-making regarding claims management and rate-making relies on this data being fully organized and up-to-date. Historically, this has meant hiring manual data entry staff to turn documents into readable data for adjusters and leadership to use in the future, costing significant amounts of time and money and reducing insurance companies’ ability to react quickly to changes in the market. Industries like this are considered prime candidates for AI automation.
With quality, purpose-driven AI tools, insurance companies can automate several business processes and streamline workflows to improve service for policyholders and improve operational efficiency and flexibility. This also saves skilled employees time on mundane tasks like data entry so that they can focus on taking care of policyholders and making important decisions.
This article discusses several insurance AI use cases, the benefits they provide, and case studies that better illustrate how these platforms operate in practice.
Insurance AI Use Cases
Machine learning has the potential to deliver multiple benefits to financial institutions, firms, and finance departments within other firms. These benefits become clearer when viewed through the lens of use cases for machine learning in finance, as listed below.
| Use Case | Description |
|---|---|
| Data Process Automation | Data ingestion and organization are the types of tasks that AI is best suited for, as it can read, organize, and generate reports on data with accuracy and speed that simply cannot be matched by manual data staff. |
| Claims Management Automation | AI technology can not only automate back-end processes but can also be used to create simple self-service claims portals to help policyholders fill out claims, even complex ones, with the help of an AI assistant to avoid having to wait for a staff member to walk them through the process. |
| Automated/Semi-Automated Claim Adjustment | For simple claims, AI tools can check against pre-determined criteria set by company leadership to automatically sort claims into buckets based on the likelihood of denial. This can save adjusters time by speeding up simple claims processing and allowing them to focus more on complex claims. |
| Regulatory Compliance | AI can help compliance departments by generating automatic alerts when regulatory steps haven’t been taken for certain docs and by automatically adding these steps to custom workflows to make it easier for staff to remember to check all necessary boxes. |
| Cybersecurity and Fraud Detection | AI-powered software can learn from manually reported fraud to identify patterns and improve its ability to catch fraud and security breaches faster and more consistently. |
| Risk Management | By tracking and analyzing client information, ML can make recommendations based on real-time data to help banks properly manage risk while market factors — such as interest rates and default risk — change in the background. |
| Automated Market Research | By enabling an AI-powered tool to monitor market trends continuously, insurance agencies can get real-time insights into market and risk fluctuations. |
| Tech-Forward ERP/CRM | Integrating many of these use cases within a unified ERP platform allows businesses to completely transform their operations from the ground up. |
| Integrated Communications | A centralized AI platform can integrate communications within your ERP/CRM to keep all relevant work data and comms in one place. |
The benefits of applying AI to these insurance industry use cases are fairly straightforward:
- More reliable and up-to-date data
- Better operational efficiency and flexibility
- Better service experience for policyholders
- Intelligent risk management
- Higher productivity for employees supported by AI tools
These advantages save money and time spent on mundane tasks and correcting misinputs from outdated manual data processes.
Case Study: PHP Agency
PHP Agency offers its staff an opportunity to become successful insurance entrepreneurs. PHP helps its growing team of insurance agents learn about the insurance industry and secure their licenses. Once licensed, PHP provides a suite of useful financial products for them to sell to their clients, including life insurance and annuities.
PHP is one of the fastest-growing insurance/financial marketing organizations in the country, and 7T’s bespoke AI technology helped them get there.
PHP Enterprise Platform ERP, CRM, and Mobile Sales Acceleration App
To alleviate PHP’s performance bottleneck due to manual processes and approvals, disconnected software solutions, and slow data reporting, 7T developed a robust, fully custom insurance CRM and ERP platform.
To build a truly custom, purpose-driven solution, 7T spent over two months diving into PHP’s business through our “Discovery and Innovation” process. We identified opportunities to optimize their business processes by shadowing their different departments and getting a direct look at where they could use software assistance. The strategy we developed for PHP Enterprise reengineered PHP’s back-office operations – from agent recruiting and licensing to sales, reporting and internal communications.
| PHP Agency ERP Capabilities |
|---|
| Complete CRM and Employee Management System |
| The PHP Agency CRM provides full CRM functionality with custom workflows and built-in business process automation. |
| Streamlined Backend Processes |
| Our platform provided a 5-10x increase in productivity by eliminating manual approval processes and third-party vendor systems and utilizing a work queue system to assist with load balancing to guarantee even and efficient distribution of labor. |
| Real-Time Data Reporting |
| Previous manual processes meant data could only be updated daily or weekly, which slowed sales reporting. Our platform provides real-time KPI tracking to empower sales staff and leadership. |
| Updated Messaging Platform |
| We improved their messaging system to make it more mobile-friendly and secure, eliminating the need for third-party communications software. |
| Intuitive Commission Engine |
| AI-automated and simplified payment tracking and commission calculation saves administrators time allocating and distributing commission payments to agents. |
| Licensing and Appointment Automation |
| We also leveraged AI automation to speed up and simplify appointment setting and tracking to get their agents licensed and streamline the review process. |
Value Added
These capabilities provide the following practical benefits to PHP Agency and their staff:
- Real-time reporting
- Sales team gamification
- Progress and goal tracking
- Secure internal messaging
- News updates
- Asset sharing
Leveraging insurance AI use cases, we were able to improve the PHP agency’s bottom line, add tangible value to their company through a bespoke IP, and revolutionize their business processes with cutting-edge tech.
Implement Insurance AI Use Cases With 7T
At 7T, we use a problem → solution approach to create AI/ML solutions for our insurance clients. Through our custom-built platforms, machine learning and AI technology can provide significant operational advantages with a robust ROI. Our team will audit your organization’s challenges, often by showing up on-location for a time to embed ourselves within your business and understand your needs from a first-person perspective. Then, we’ll architect a value-generating solution to transform your vital processes and meet your goals.
7T is based in Dallas, Houston, and Charlotte, NC, but our clientele spans the globe. If you’re ready to learn more about Insurance AI use cases, contact 7T today.
