Artificial Intelligence: How to Harness It to Improve Insurance Compliance
Hey Siri…What’s Narrow AI?
Have you ever asked Alexa to play your favorite song, or had Siri give directions to the nearest coffee shop? Well then, consider yourself one of the millions of AI users! So, what exactly is AI? AI stands for Artificial Intelligence, and, simply put, refers to the ability of a machine or program to demonstrate behaviors typically associated with human intelligence, such as problem solving or analyzing documents.
There are two categories associated with AI, narrow AI and general AI. Narrow AI is only able to carry out one specific trained task; things like recommending products on Amazon, or even self-driving cars fall under this category. On the other hand, general AI is flexible and able to execute a multitude of tasks and can be programmed to continually learn and teach itself. Now that you understand the basics, lets dive into what we can expect from AI in the coming years, and explore the various ways we can harness AI to improve compliance for risk managers, insurance consultants, and brokers.
AI Software in Everyday Life: What We Can Expect Looking Forward
AI is becoming more and more widespread, utilized in voice assistants like Siri and Amazon’s Alexa, to technologies allowing detection of lung cancer and heart disease. This wide range of possibilities means new and innovative AI software is emerging and will affect many aspects of our lives. Specifically, AI researchers have begun to train programs to do our jobs for us, focusing on the more systematic and mundane tasks such as automated certificate tracking using OCR (Optical Character Recognition). This doesn’t mean we are all going to lose our jobs to Artificially Intelligent machines, however, it does give us the possibility to use AI to perform timely and strenuous tasks, allowing for more efficiency in the workplace, and giving humans a chance to focus their hard work in areas AI can’t.
How Can Risk Managers Utilize AI Today?
Recently, LawGeex conducted a study on using AI to review legal contracts. Their results were astonishing, though not surprising. Lawyers had an average accuracy rate of 85%, compared to the AI’s near perfect score of 94%. Even more impressive than the accuracy rate is the speed; lawyers took an average of 92 minutes to finish, versus the 26 seconds (yes, seconds!) it took the AI! According to this study, it is apparent that AI proved to be more accurate and efficient than human lawyers when approving everyday contracts, and although the accuracy could be comparable at times, the speed varies in a way that is impossible for humans to reach. A recent article by Exari explains that AI is “automating certain repetitive tasks and enhancing human capabilities.” This is being done by utilizing the technology to streamline basic monotonous tasks.
So how does this study apply to you? Insurance document review also includes contracts and certificates, cutting manual monitoring and improving accuracy and speed immensely. Contract management and compliancy are a big part of the capabilities of AI technology, and a huge step forward in streamlining these processes for efficiency. Dealing with COI’s can be a hassle. Bringing in technology that allows for automatic certification tracking and renewal management allows employees to be freed up for the parts of their job they have been trying to balance, while also being able to effortlessly track compliance. This allows for more concentrated and timely work, while handling certs with accuracy and efficiency, too! Don’t fall behind the competition. Learn and integrate innovative risk management software with AI capabilities into your compliance processes today to streamline your COI tracking and compliance management.
Still curious about AI? Give this a read.