Machine Learning and the Role It is Playing in Shaping the Insurance Industry
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Customers these days tend to live in an Omni-channel world! However, still, there are many businesses that force the significantly evolved customers onto engagement paths that are relatively outdated. A recent report by global research and advisory firm, Gartner highlighted that by the end of the year 2020, 85per cent of the customer interactions will be managed without a human. This is because businesses are now employing machine learning to provide an intelligent and informed customer experience. This broadly results in re-imagined customer experiences that are integrated and completely personal. The experience is significantly natural to the customers.
As the latest advancements in the technology industry strive to transform how businesses are being developed, business owners are now actively looking for efficient and progressive ways to operate and eliminate issues related to customer satisfaction. Measuring the many attributes of marketing to access revenue growth is becoming more real-time and accurate, all thanks to Machine Learning.
What is Machine Learning?
Machine learning is an effective application of artificial intelligence also known as AI that makes any system efficient of learning and improving automatically from the experience itself without the assistance of the program. The application usually focuses on the development of different computer programs that can directly access data and use it to learn for themselves. The entire process of learning begins with the analyses of data which can include direct experiences or even any given instructions to properly study a pattern in data. This plays a vital part to make better and improved decisions in the future.
The key objective of machine learning is to let the computers automatically learn without the intervention of any human being and adjust the actions as per needs and requirements. Machine learning software was once thought to be a very technical and complicated application however it is now widely available and used by most businesses. Machine learning primarily heightens any organization’s sheer ability to build all data-backed applications to enhance the overall customer experience.
Importance of Machine Learning
As an entrepreneur, it has become very important to know what all is driving more marketing leads and how to best optimize the marketing campaigns. Industry leaders believe that improving the precision and profitability of pricing is one of the integral areas where machine learning is revolutionizing the concept of a customer centric approach. As per a recent survey, in the last 2 years, small businesses have spent over $55 billion on just cloud-based services, wherein an average professional uses anywhere between 10-16 apps daily. If trends are to be believed, by the end of the year 2020, more than 80per cent of the small businesses operating today will be using cloud-based services, increasing the current numbers by 37per cent .
Moreover, 84per cent of the marketing organizations operating today have already started implementing machine learning. Out of this, over 75per cent of the enterprises using machine learning are already experiencing enhanced customer satisfaction.
Uses of Machine Learning in the Insurance Industry
Insurance companies selling health, life, motor and home insurance can use machine learning (ML) in numerous ways for driving enhancements in operational efficiency, customer service and fraud detection. One of the most effective uses of machine learning is Policy Lapse Management wherein by using the technology, the insurer can easily identify the policies that are about to lapse and when to approach the insured regarding renewal of the policy. Machine learning also plays a significant role in Fraud Detection in insurance as it helps in identifying potentially fraudulent claims. In many cases, machine learning even helps the consumers in getting the right insurance as per their current life situations such as marriage and birth of a child.
In order to analyse and significantly reduce customer mix, machine learning has proved to be very fruitful in streamlining the various risk prediction. Businesses instead of completely relying on expensive methods to minimize customer churn must turn to machine learning.