By 2030 Artificial Intelligence will be an essential factor in the lives of all consumers and the businesses that rely upon them to keep their doors open. Their virtual doors, at least, because the future is already here regarding insurance. AI is already being used for some stages of the process, such as claims and applications. The days of sitting in a small office and waiting for the agent to come up with a quote, or finish filing a claim, are long gone. But the main question is, what will the insurance industry look like in 2030? What will the impact of AI be on the future of insurance?
Pricing
One of AI’s most significant impacts on the insurance industry will be pricing. There will no longer be a one-size-fits-all type of insurance plan. Instead, each and every case will be decided with the help of AI. In fact, if an agent is involved in the process, it will only be because you have chosen to work with one.
This will affect the pricing of your insurance policy in a couple of different ways. First, removing the person between you and the insurance carrier (the insurance agent) will decrease the cost of the policy. There will not be an added expense to cover the cost of the agent. This alone will reduce the premium costs handed down to you as the consumer.
The second way this will decrease the insurance plan costs is by customization. Each and every policy will be customized by the AI system. Taking into account your age, creditworthiness, location, history, and any other pieces of information that could decrease your premiums, or increase them if the situation calls for it.
Time
You all know that time is money when it comes to business or work. The more time something takes, the more money it will cost you. Ai will dramatically decrease the time it will take to file a claim, hand in an application, or show proof of your driver’s license and insurance.
It is all on the internet, so the AI systems can access the information they need and complete the transaction within minutes, or even seconds, if it is an easy solution (such as applying for an insurance policy.) The most extended amount of time will be how long it takes you to fill in the electronic forms.
This will create a way for all consumers to get affordable car insurance, home insurance, business insurance, travel insurance, life and health insurance, and so on. Insurance carriers will be more competitive than ever. Still, since AI will be running the show, the costs of individual policies should be similar, as should the coverage it gives you.
Safety
One of the biggest fears consumers have about conducting business online is the safety of their information. Putting all your personal information on a website for an AI system can be scary. This problem is more in your head than in reality, though. Information on the internet is not as safe as living off the grid and using cash, but it is as safe as possible.
Once all the insurance companies use the same blockchain systems to communicate with each other, it will create safety in two ways. First, only a very experienced hacker will be able to access any of your information. Still, since blockchain is designed to prevent any security breaches, none of your data can be changed without you knowing about it.
The second way that AI will help is the detection of fraud. Fraud cases are still a significant issue in false insurance claims. AI will be able to detect any discrepancies in a claim, and it will investigate anything that seems out of the ordinary. If it decides the claim is false, it will deny or put it on hold until the insurance carrier can investigate it further.
Final Thoughts
AI is not something to be afraid of. In fact, you may be surprised at how many things are already controlled by it. Streaming companies like Hulu and Netflix collect data about what you watch. The AI will suggest similar movies that follow your tastes. That is AI at work.
Even if you feel like you want to avoid using anything like insurance companies that use AI platforms, you will quickly find that by 2030 everything will have a connection to some form of AI. The future is here, and society will continue to rely on AI for all areas of life, leaving those behind that refuse to embrace it.
