AI in Product Design & Insurance: A New Age of Underwriting in India
How AI is transforming product design thinking, need-based product design, need-based risk assessment, instant onboarding, and underwriting in insurance in India
As industries evolve, the integration of AI is becoming inevitable. The insurance sector, a cornerstone of risk management, has always been dependent on data analytics. In countries like India, where the sector is expanding, the role of AI in reshaping product design thinking, need-based risk assessment, and underwriting is increasingly evident. Let’s explore this transformative journey.
Product design thinking
AI is transforming product design thinking in a number of ways. First, AI can be used to analyze large amounts of customer data to identify unmet needs and opportunities. This information can then be used to design products that are more likely to be successful in the market.
Second, AI can be used to create personalized product experiences for each customer. This is done by using AI to understand each customer's individual needs and preferences.
Third, AI can be used to automate many of the tasks involved in product design and development. This frees up product designers to focus on more creative and strategic work.
Need-based product design
AI can be used to design products that are better suited to the needs of individual customers. This is done by using AI to understand each customer's individual needs and preferences.
For example, AI can be used to design insurance products that are tailored to the specific needs of different customer segments. For example, an AI-powered underwriting system could be used to design a customized insurance policy for a high-risk customer, such as a small business owner.
Need-based risk assessment
AI can be used to perform more accurate and personalized risk assessments. This is done by using AI to analyze large amounts of data, such as customer demographics, claims history, and external data sources, such as credit reports and social media data.
For example, an AI-powered underwriting system could be used to assess the risk of a customer developing a particular disease, such as cancer. This information could then be used to price the customer's insurance policy accordingly.
Instant onboarding and underwriting
AI can be used to automate the onboarding and underwriting process, making it faster and more efficient for customers.
For example, an AI-powered underwriting system could be used to instantly approve a customer's insurance application based on a few key pieces of data, such as their name, age, and address. This would eliminate the need for customers to fill out lengthy forms and wait for a human underwriter to review their application.
Why insurance in India needs a new age risk-based underwriting system, personalized risk assessment, and automated decision-making, lowering cost, reducing risk & fraud, reducing early claims
The traditional insurance underwriting process in India is manual and time-consuming. This can lead to delays in policy issuance and make it difficult for insurers to accurately assess risk.
Additionally, the traditional underwriting process is often based on a limited set of data, such as customer demographics and claims history. This can lead to inaccurate risk assessments and higher insurance premiums for customers.
AI can be used to transform the insurance underwriting process in India by making it more efficient and accurate. AI-powered underwriting systems can use a wider range of data, such as external data sources, to assess risk more accurately. This can lead to lower insurance premiums for customers and reduced risk for insurers.
Additionally, AI-powered underwriting systems can automate many of the tasks involved in the underwriting process, freeing up underwriters to focus on more complex cases. This can help to reduce the cost of underwriting and improve the customer experience.
Case study: Artivatic AI
Artivatic AI is a Gurugram-based InsurTech company that is using AI to transform the insurance underwriting process in India. Artivatic AI's AI-powered underwriting platform, AUSIS, can be used to instantly assess the risk of a customer and approve or decline their insurance application in real time.
AUSIS uses a variety of data sources, including customer demographics, claims history, and external data sources, such as credit reports and social media data, to assess risk. This allows AUSIS to provide more accurate risk assessments than traditional underwriting systems.
Artivatic AI's clients have reported a number of benefits from using AUSIS, including:
Reduced underwriting costs
Increased underwriting accuracy
Improved customer experience
Use cases
Here are some specific use cases for AI in insurance underwriting:
Personalized risk assessment: AI can be used to assess the risk of each customer individually, taking into account a wide range of factors, such as their demographics, claims history, and external data sources. This can lead to more accurate risk assessments and lower insurance premiums for customers.
Fraud detection: AI can be used to detect fraudulent insurance claims. AI-powered fraud detection systems can identify patterns in claims data that may indicate fraud. This can help insurers to reduce fraud losses.
Automated decision-making: AI can be used to automate many of the tasks involved in the underwriting process, such as risk assessment and policy issuance. This can help to reduce the cost of underwriting and improve the customer experience.
Tech usefulness
AI is a powerful tool that can be used to transform the insurance underwriting process in India. AI-powered underwriting systems can provide a number of benefits, including:
Increased accuracy: AI-powered underwriting systems can use a wider range of data to assess risk more accurately than traditional underwriting systems. This can lead to lower insurance premiums for customers and reduced risk for insurers.
Reduced cost: AI-powered underwriting systems can automate many of the tasks involved in the underwriting process, freeing up underwriters to focus on more complex cases. This can help to reduce the cost of underwriting.
Improved customer experience: AI-powered underwriting systems can make the insurance onboarding and underwriting process faster and more efficient for customers. For example, AI-powered underwriting systems can be used to instantly approve customer insurance applications.
Future of customer risk assessment & underwriting
The future of customer risk assessment and underwriting is likely to be increasingly reliant on AI. AI-powered underwriting systems are becoming more accurate and efficient, and they are able to use a wider range of data to assess risk.
This means that AI-powered underwriting systems will be able to provide more personalized and affordable insurance products to customers. Additionally, AI-powered underwriting systems can help insurers to reduce fraud and improve the customer experience.
How insurers are moving forward
Insurers in India are increasingly moving towards using AI in their underwriting operations. Some of the ways that insurers are using AI in underwriting include:
Using AI-powered underwriting systems to assess risk and approve insurance applications.
Using AI to develop personalized insurance products for customers.
Using AI to detect fraudulent insurance claims.
Roadmap ahead for next 5-10 years
In the next 5-10 years, AI is expected to play an even greater role in insurance underwriting. AI-powered underwriting systems are likely to become more sophisticated and accurate, and they will be able to use a wider range of data to assess risk.
This means that AI-powered underwriting systems will be able to provide even more personalized and affordable insurance products to customers. Additionally, AI-powered underwriting systems will be able to help insurers to further reduce fraud and improve the customer experience.
Here are some specific ways that AI is likely to impact insurance underwriting in the next 5-10 years:
AI-powered underwriting systems will be able to assess risk in real time. This will allow insurers to provide instant insurance quotes and coverage to customers.
AI-powered underwriting systems will be able to use new types of data to assess risk, such as social media data and telematics data. This will allow insurers to provide more personalized and accurate risk assessments.
AI-powered underwriting systems will be able to automate more of the underwriting process, freeing up underwriters to focus on more complex cases. This will help to reduce the cost of underwriting and improve the efficiency of the underwriting process.
Overall, AI is poised to transform the insurance underwriting process in India in the next 5-10 years. AI-powered underwriting systems can provide a number of benefits to both insurers and customers, including increased accuracy, reduced cost, and improved customer experience.
Note: Looking for new age products for insurance or consulting to understand the transformation in insurance at your organization, write to us contact@artivatic.ai