Historically, the insurance claims process was built on paper files, and that infrastructure has not fundamentally changed in more than 100 years. It’s long overdue for a refresher. Even as carriers have shifted from filing cabinets to the cloud, much of the resulting information remained unstructured data that could not be fully leveraged. AI is transforming this by unlocking insights from decades of records and converting them into a powerful and flexible knowledge base.
AI is widely regarded as one of the most transformative forces in the insurance industry, creating opportunities to streamline processes and enhance customer satisfaction. In home insurance alone, 70 percent of insurers are already using AI or are actively exploring its applications, with adoption strongest in claims (54 percent), underwriting (47 percent), marketing (47 percent) and fraud detection (42 percent), according to an August 2023 NAIC staff report on home insurance, artificial intelligence and machine learning. This rapid uptake reflects the industry’s recognition that longstanding systems are overdue for change.
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