Software for insurance companies - Addressing processes more efficiently with AI

Jan Schäfer

Increased customer expectations and high competitive pressure make it difficult for insurance companies to hold their own in the market. A decisive factor for success is the efficiency of data processing. After all, only those who evaluate data intelligently can satisfy existing customers, acquire new customers, and make well-founded business decisions. 

More and more primary insurers, reinsurers and insurance brokers are therefore using software to help them process data. This now goes far beyond the use of classic CRM systems. Instead, insurance companies are using powerful solutions that often incorporate advanced technologies such as artificial intelligence (AI) and machine learning (ML).

We'll show you the benefits of AI-powered software for insurance, what you should look for when choosing a solution, and which 5 vendors provide mature software.

Advantages of Software for Insurances

software for insurance benefits

The benefits of software for insurance are not limited to a single area of work. Rather, insurance service providers benefit from a wide range of advantages - from process optimization to a better customer approach to data-driven decision-making:

Efficient handling of administrative tasks

Insurance software can automate repetitive administrative tasks, such as data processing, documentation and communication. This frees up insurance providers' time and resources, which they can use for more strategic tasks.

Example

An insurance company uses a program to process claims automatically. In the process, customers report their claims online. The software then initiates the process automatically, informs all relevant departments, and tracks progress through to claims settlement. 3 renowned providers for this automation are Guidewire ClaimCenter, Snapsheet and Sapiens IDIT. 

Upgrading of the stock

With software, insurance companies improve their policy and portfolio management. In this way, they analyze existing insurance contracts more thoroughly, optimize portfolios and are able to better serve individual customer needs.

Example

With the help of software, an insurance company analyzes its portfolios and recognizes that a certain group of customers is underinsured. Based on these findings, the insurance company creates targeted offers to close the coverage gaps. 3 established programs for analyzing inventories are IBM SPSS Modeler, SAS Enterprise Miner and RapidMiner.

Creation of customized customer offers

Insurance software supports the personalization of offers. By analyzing customer data, the company can develop needs-based insurance solutions.

Example

An insurance company uses algorithms to analyze driving behavior data from telematics devices in cars. Based on this data, the insurance company can offer personalized car insurance with individual rates based on actual driving behavior. The software applications Octo Telematics, Cambridge Mobile Telematics and The Floow have established themselves for this purpose.

Personalized marketing campaigns

Software enables insurance companies to analyze large amounts of data and derive insights that help in the acquisition of new customers. In doing so, insurance companies determine a more targeted approach to potential customers.

Example

Modern software for insurance monitors social media and the online behavior of potential customers. In this way, it recognizes trends and interests. This enables it to develop tailored marketing campaigns that capture the attention of the target group. The most suitable tools for this are Hootsuite, Sprout Social and Agorapulse.

Organized sales processing

A customer management program for insurance brokers supports the sales process by helping salespeople manage customer contacts, create quotes, and monitor the entire sales cycle. This leads to better collaboration and communication within the sales team.

Example

A company uses insurance broker software to efficiently process customer data and track the sales process. Sales reps can access the data, update contact status, and create personalized quotes, while management monitors the sales team's progress. Widely used software for this purpose include Vertafore, Applied Systems and EZLynx.

Improved risk management

Insurance software enables more accurate assessment of hazards and the development of loss prediction models. This helps providers refine their risk assessment and set appropriate premiums.

Example

An insurance company uses Machine Learning, among others, in order to predict the risk of natural catastrophes in specific areas. Based on these forecasts, it adjusts its premiums accordingly. There is no special software on the market for this, but insurance companies can previously record natural catastrophes in their files and the resulting damage via an AI data software such as Konfuzio which allows them to evaluate the data automatically.

Faster claims handling

With AI software, insurance companies speed up the claims handling process enormously. They are helped by automated workflows and digital communication to collaborate more efficiently with customers and service providers.

Example

An insurance company uses an app that allows customers to report damage immediately after the event. The app captures images and details of the damage and automatically forwards this information to the appropriate department for quick processing. So far, there is no all-in-one tool for this on the market, but solutions such as the DAT claims management platform, FastLane (automotive) and Appian Connected Claims are helping.

software for insurance use cases

3 important Use Cases of AI Software for Insurances

The benefits of software for insurance companies are obvious. Insurance companies can better serve existing customers and acquire new customers more efficiently. How important artificial intelligence is, show the following 3 use cases:

1. Extract relevant information

Insurance software with AI helps extract relevant data from documents in an automated way:

Challenge

Insurance companies evaluate documents submitted by customers on a daily basis in order to calculate policies. When taking out a car insurance policy, for example, they have to take the Vehicle registration document into the system and determine and extract the relevant information contained therein. Only then is it possible to calculate how much the customer will have to pay. For these tasks, employees have to type out and calculate data manually.

Solution

Software for insurance companies automatically stores the incoming vehicle registration document in the system and extracts, among other things, the manufacturer code number (HSN) and the type code number (TSN). Based on this, the program calculates the insurance premium for the customer. There is no need for employees to be involved in this process. They can devote themselves to more complex tasks.

2. Categorize documents 

An AI program categorizes documents according to company specifications:

Challenge

Insurance companies receive countless different types of documents every day. Before they pass them on to the subsequent workflows, they are often first categorized. The problem is that the documents often do not arrive in machine-readable form. In practice, this means that employees first have to sift through them and then categorize them manually.

Solution

An AI categorizes incoming documents according to the rules specified by the insurance company. In this way, the responsible departments immediately have the necessary data to process a case.

3. Accelerate case processing

Insurance software with AI makes case processing more efficient:

Challenge

Before insurance companies pay a customer's claim, they first have to sift through and process the submitted claim documents and then match them up with the insured perils. This takes an enormous amount of time.

Solution

KI can automatically compare the documents submitted in different formats with the conditions in the insurance policy. If desired, it can also perform a plausibility check of the claim and the required compensation payment by comparing the individual case with other cases stored in the system. In this way, insurance companies know after just a few seconds whether and how much money they have to pay their customers.

software for insurance features

What a Software for Insurances should bring along

If insurance companies decide to use software, they are quickly faced with the question of what it should bring with it so that it can fulfill the above-mentioned services. Because: As has already become clear, a program is not only used for data and document management.

Instead, an intelligent solution can assess claims, understand customer needs, and provide critical support for acquisition.

In short, companies need software that supports them along the entire value chain. Which factors are relevant for this?

Seamless integration into existing systems

The software should be able to integrate seamlessly into the company's existing IT infrastructure. Only then can the insurance company efficiently exchange data and information between different platforms - without the need for manual effort or data conversion.

For example, if an insurance company already uses an internal CRM system to manage customer contacts and communication, the software should be able to interact with this CRM system without any problems. If a customer submits a claim via the CRM system, the software should be able to read this information and thus start the claims handling process.

Efficient linking of data and processes

Intelligent insurance software seamlessly links different processes and makes it possible to integrate data from different sources. This enables companies to exchange information efficiently. You get a holistic view of the customer and the business processes.

In practice, this could look like this, for example: A customer reports a claim via the insurance company's online platform. The software automatically links this report to the relevant customer data and forwards it to the claims processing department.

High adaptability

The software should be customizable to the insurance company's requirements. This way, each department can train and set up the program to perform tasks efficiently. Intelligent insurance software in the healthcare sector is therefore configured, for example, to automatically read the health insurance number from submitted invoices.

Process automation

The software should enable automated workflows to reduce repetitive tasks. This saves time and minimizes sources of error by reducing human intervention. In practice, therefore, the program automatically sends reminders to customers for premium payments, initiates the claims settlement process, and delivers notifications to the parties involved when an important milestone is reached, for example.

Security and data protection

Powerful insurance software brings strict security measures to ensure the confidentiality of customer information and protect against potential cyberattacks. In practice, it therefore uses encryption technologies, for example, to protect communications between the insurance company and customers, and implements access restrictions to ensure that only authorized employees can access sensitive data.

Software for Insurance - 5 powerful Providers

Which software you need for your insurance depends on your individual needs and goals. It is therefore advisable to first determine what you want to improve with software. The following 5 providers have different focuses, but offer powerful features in their areas and are used by numerous companies:

Konfuzio

Konfuzio offers an AI-based platform for the automated processing and analysis of unstructured text data. This means that insurance companies can efficiently process, analyze and evaluate documents such as insurance policies, claims notifications and customer correspondence. Through an advanced artificial intelligence, Machine Learning and Deep Learning, they can set up and implement rules for their business processes in no time at all. Konfuzio goes beyond partial process automation. Instead, insurers can use the software to add end-to-end automation to their document management. To understand the comprehensive capabilities of AI, you can test the software for free.

Advantages and disadvantages

Advantages: Automated text analysis, efficient processing of unstructured data, real-time analysis, easy scalability as your business grows, easy integration with existing systems, easy-to-understand interface

Disadvantages: The higher price could be a barrier to entry for small businesses.

Main target group

Large Insurance companies that want to efficiently automate their document management and other business processes.

SAP for Insurance

SAP offers comprehensive, digital solutions for insurance companies that cover all aspects of the value chain. This includes contract management, claims processing, customer relationship management, finance and accounting, and analysis and reporting functions, among others.

Advantages and disadvantages

Advantages: Comprehensive suite of solutions, strong integration capabilities, support for large insurance companies

Disadvantages: Complexity and high costs can be a challenge for smaller companies.

Target group

Large insurance companies with complex business processes and extensive IT infrastructures

Guidewire InsuranceSuite

Guidewire's InsuranceSuite provides an integrated platform for insurance with modules for policy administration, claims processing, customer management, and digital services. It supports the entire insurance policy lifecycle.

Advantages and disadvantages

Advantages: Well scalable solution, modern user interface

Disadvantages: Possibly less suitable for specific niche insurances

Main target group

Medium to large insurance companies looking for an integrated platform for various business processes.

Duck Creek Suite

The Duck Creek Suite provides insurance companies with a flexible and configurable platform that covers policy administration, rating, claims processing and digital channels.

Advantages and disadvantages

Advantages: High adaptability, modern technology, agile solution

Disadvantages: Configuration can be demanding and require external support.

Main target group

Insurance companies that need a flexible platform for designing and efficiently managing their insurance products.

Applied Epic

Applied Epic is a management software for insurance agencies and brokers. It offers a wide range of functions for customer management, contract administration, billing, marketing and reporting.

Advantages and disadvantages

Advantages: Specialized in insurance agencies and brokers, comprehensive administrative functions Disadvantages: Possibly less suitable for large insurance companies with complex requirements

Main target group

Insurance agencies and brokers looking for comprehensive software to manage their business processes.

FAQ

What are the benefits of software for insurance?

Software for insurance optimizes the entire value chain and therefore brings numerous benefits. These include increased efficiency through automation, precise data analysis for better decisions, rapid claims processing, optimized customer communication, and customized offers. In practice, insurance companies thus also improve the customer experience and make more informed business decisions.

What functions and features should insurance management software have?

Efficient insurance administration software enables smooth contract management, effective claims processing and easy customer data maintenance. The software should be seamlessly compatible with existing systems to ensure data consistency. High security measures protect confidential information from unauthorized access.

What are the best providers of software for insurance?

The insurance industry benefits from software solutions such as SAP for Insurance, Guidewire InsuranceSuite, Duck Creek Suite, Insurity, and Applied Epic. Among other things, these offer integrated functions for policy administration and claims processing. For insurance companies that primarily want to efficiently automate their document management, Konfuzio is the ideal solution. The software enables AI-based, highly accurate text analysis and evaluation, enabling companies to significantly improve existing customer care, new customer acquisition and business development.

Want to learn more about how AI can automate your insurance workflows? Then talk to us now with one of our experts

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