Artificial intelligence (AI) is projected to have a “highly disruptive” impact on insurance claims management worldwide, resulting in a more than four-fold increase in cost savings.
That is according to study from Juniper Research, which predicts cost savings of $1.3bn (£1bn) across motor, life, property and health insurance in 2023, up from $300m this year.
‘Chatbots’ are expected to play a significant role, automating post-incident data collection before AI is used in conjunction to analyse details and images provided using computers.
“These methods will not only save money for insurers, they will also reduce time to claim settlement, improving customer loyalty,” Juniper Research said.
“Natural Language Processing advances mean that chatbots can handle complicated enquires, so there is a vast potential to reduce spending on customer services.”
Chatbots are described as “a computer programme utilising technology designed to simulate conversational interactions with human users,” which may also trigger automated responses.
Juniper Research’s latest study also forecasts the technology to result in operational cost savings of $7.3bn for banks in 2023, up from approximately $209m in 2019.
This represents an estimated 862 million hours of time saved for banks using chatbots, with successful interactions forecast to grow by nearly 3,150% during that time.
The researchers expect mobile applications to be the dominant channel for customer communications, accounting for 79% of successful interactions in 2023.
And as domain expertise is added to AI systems, Juniper Research said sceptical financial institutions would be won over by chatbots demonstrating a seamless service delivery.
The growing sophistication of the technology will also enable chatbots to share insights with customers while providing services outside of typical working hours.
Research author, Nick Maynard, said: “Chatbots allow heavily automated customer service in a highly scalable way.
“This type of deployment can be crucial in digital transformation, allowing established banks to better compete with challenger banks.”
The value of global blockchain transactions is set to reach an unprecedented $3.4trn by 2023 as financial institutions increasingly look to the technology to improve their bottom lines.
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