Insurers have many reasons to invest in AI. Adapting to increasingly severe and frequent disasters ranks high on the list.
Executive Summary
In this three-part article series, two leaders in the insurance technology space, Shravan Kumar Joginipalli and Amrish Singh, discuss key human and technological considerations, providing guidance to help insurance leaders achieve return on their technology investments.
Here, in Part 3, they focus on specific AI use case—responding to customers impacted by natural disasters.
In Part 1, they focused on the human element of innovation, offering five steps for building an AI-ready culture.
In Part 2, they examined potential technology project pitfalls, offering advice on how to avoid them.
Natural disasters aren’t just a financial threat to insurers; they can also undermine customer relationships and result in policyholder churn.
Make sure your AI initiatives are ready for the next catastrophic event.
How AI Tools Can Boost Disaster Preparedness
When a natural disaster strikes, insurers can be overwhelmed. Call volume can easily surge by 10 to 20 times as policyholders call to report losses. All these policyholders are dealing with urgent situations, so they expect assistance immediately. Unfortunately, insurers can’t always keep up with the volume, resulting in long wait times and dissatisfaction.
Fox 26 Houston reported in September last year that some policyholders were still waiting two months after Hurricane Beryl hit Texas. The delays frustrated claimants who desperately needed repairs. Delays could even put insurers on the wrong side of the law, since Texas requires insurance carriers to accept or reject claims within 15 days of receiving all requested documents.
