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AI technology speeds up human work by repeated algorithms and aids in automating the work through computer systems without requiring human intelligence . Furthermore , AI helps in faster claim settlement , reduces the rate of fraud , and improves the market efficiency of the insurance sector . Moreover , the expansion and adoption of AI has rapidly increased due to rapid growth in consumer data and massive penetration of insurance products . Therefore , the rise in AI adoption in the insurance sector reduces the cost of operation and boosts the AI in insurance market growth .

While almost all industries have succeeded with AI or have started investing in AI , the insurance industry lags substantially . With the advent of InsureTech start-ups and technology incumbents , the scenario is fast changing now as they can deliver faster claim payments , greater price transparency , and on-demand policies , while simultaneously reducing costs and resources required . The changing dynamics open huge opportunities for the AI-enabled insurance landscape globally .

Enriching customer experience thanks to AI , firms can take a more granular approach and more accurately calculate premiums that are specifically customised for each customer .

Insurers apply data analytics to identify pain points in customer interactions and facilitate making the customer interaction process more fluid and personalised . Some insurers have also started crossreferencing call center recordings with chatbot data to acquire insight into customer sentiment and boost agent service quality .

This renewed thrust on personalisation has offered a new lease of life to the insurance sector . These policies allow customers to customise coverage down to even a single item , such as a camera or smartphone , or a single event , like a short-term renter ' s insurance for the length of a vacation stay . How do we gain access to

Ram Ramachandran , Senior Vice President and Head , Middle East and Africa , Tech Mahindra

The rise in AI adoption in the insurance sector reduces the cost of operation and boosts the AI in insurance market growth .

When it comes to improving customer experience , data is everything . IoT devices have opened new channels for insurers to gather data to give them valuable insights into customer demands and risks related to customer behaviour and external factors . And AI-based analytics boosts insurers ' ability to make sense of this data and apply it to actuarial sciences .

Crucially , this enhanced level of data gives insurers the power to track consumer behavior and reward it through incentives such as lower premiums . In the past , premiums were calculated based on location , with data only available at the level of zip codes . Now , such refined data ? Well , chatbots , virtual advisors , and voice neural interfaces have created a more seamless , automated , and personalised enrolment experience in recent times . Insurers are deploying machine learning and behavioral science to speed up the process , rather than waiting for the applicants to provide information and sign documentation . Such an approach allows customers to enroll for any insurance policy in as little as 90 seconds and get claims processed , through a smartphone , in less than three minutes .

Additionally , customers need a highly transparent insurance scheme , which is easy to understand , and

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