AI and Life Insurance

Diabetes365 ≫ AI and Life Insurance

Written By

Aaron Smith

Aaron Smith is an LA-based content strategist and consultant in support of STEM firms and medical practices. He covers industry developments and writes about all things Diabetes. In his free time, Aaron enjoys swimming, swing dancing, and sci-fi novels.

Fact Checked By

Chris Riley

Chris Riley

An entrepreneur at heart, Chris has been building and writing in consumer life insurance and health for over 11 years. He's contributed to 1,000+ medical, health, financial and wellness articles and product reviews written in the last 11 years.In addition to Pharmacists.org, Chris and his Acme Health LLC Brand Team own and operate Diabetic.org, PregnancyResource.org, Multivitamin.org, and the USA Rx Pharmacy Discount Card powered by Pharmacists.org.Chris has a CFA (Chartered Financial Analyst) designation and is a proud member of the American Medical Writer’s Association (AMWA), the International Society for Medical Publication Professionals (ISMPP), the National Association of Science Writers (NASW), the Council of Science Editors, the Author’s Guild, and the Editorial Freelance Association (EFA).

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Last Updated on December 11, 2024

The life insurance industry is often regarded as one of the first to employ modeling and statistics. Artificial intelligence (AI) and the Internet of Things (IoT) are slowly but steadily making their way into the life insurance market. Insurance companies in the United States have established a life insurance model with the use of smart devices that assesses various life habits and functions. The usage of smart devices in all life insurance models has been active for some time, and it has shown a lot of benefits.

Customer-centric and shifting demographics, combined with cloud, AI, and big data technology, have resulted in a tremendous amount of data. This data, when combined with sophisticated tools and processes, may be a gold mine for making knowledgeable business decisions. Information technology (IT) has long been utilized in the insurance industry to improve efficiency and assist with business processes, like claims handling and insurance takeovers. IT will take on, analyze, and identify new risks and revenue streams as AI is utilized more and more.

Now the good news! People with Diabetes can actually benefit from these changes within the life insurance industry. Many people with Diabetes can be approved for non medical exam options in a matter of days, instead of waiting around for weeks to receive a decision. Life insurance with diabetes continues to evolve, and things are getting better for the Diabetes community in this regard.

In just the last 10 plus years, life insurance for type 1 and type 2 diabetics has become a breeze. All types of insurance riders are available for consumers that enhance the coverage of life insurance. Also the premiums people with diabetes pay are at all time lows. We anticipate rates even declining further over time.

The cost of life insurance is determined, in part, by where the subscriber lives. Most people constantly have a smart gadget with them that measures their activities, such as a phone, a smartwatch, or a smart bracelet. Using data from these devices, daily activity targets, such as the number of steps taken, exercise, and the purchase of healthy foods, can be assigned to each user. Those that meet certain objectives can be rewarded with insurance premium savings.

Quick Article Guide

Here’s what we’ll cover in this post:

Switching to a Digital Platform
Improving on Customer Expectations
Automated Product Recommendations
Using Customer Data from Multiple Sources
Getting a Better Understanding of an Applicant’s Risk
Offering Better Customer Service
Providing more Flexibility and Efficiency
Final Thoughts

From manual to digital

Processes in the life insurance field were more manual and labor-intensive before AI. The downside was that, in most cases, application processes would take days or weeks to complete. Previously, product recommendations were based on adviser expertise, insurance fraud detection systems had too many flaws, and risk categories were categorized based on static data such as medical history and age. AI has made it possible to make the whole process faster, safer, and more tailored to individual subscribers.

By eliminating certain steps along the way, such as a human inputting data, insurance companies can speed up the application process. Data processing, retrieving Medical Information Bureau data, and reviewing your prescription drug history can all be automated making the process much more streamlined.

Customer understanding of life insurance has improved

The life insurance business has gained unprecedented client intelligence thanks to AI. Insurance firms can use big data and analytics to extract insight that can help them enhance customer service. It can also allow them to create better campaigns for potential consumers and buyers, increase sales and cross-selling efficiency, and increase income. AI will soon be able to design solutions to key problems in a wide range of fields, including the life insurance industry.

Product recommendations that are both automatic and targeted

Insurance businesses can use AI to provide the most relevant products to their consumers. The AI platform can quickly recommend coverage and burial in addition to typical life insurance recommendations. All of these recommendations are based on factors such as gender, age, location, family size, family situation, and annual revenue. This could benefit insurance salespeople by allowing them to better match product attributes based upon value to a customer’s specific needs.

AI models can help predict if a person may be underinsured as their family grows. By being able to help identify candidates who are not properly insured consumers can expect to receive email or text messages indicating it’s time for an insurance portfolio review. These subtle reminders can help ensure family’s are adequately covered and protected.

Combination of customer data from several sources

User data can be acquired from a variety of sources using artificial intelligence, including blogs, clicks, CRM systems, and social media. This information can then be combined into a single format for the analyst. Risk groups can be categorized more correctly and automatically. Insurance companies can propose their products to their clients. Cross-selling and extra sales opportunities can be recognized as one of the benefits that AI brings.

Better understanding the risk

Artificial intelligence offers a lot of potential for improving the insurance value chain. It assists in automating procedures to provide better service to consumers. Strengthening AI in the field of data analysis will give insurers and their clients a better understanding of risks, allowing them to be minimized more efficiently. Artificial intelligence-driven analytics, for example, could aid businesses in better understanding cyber dangers and enhancing security. The same technology could assist insurers in identifying areas with higher cyber risk.

New liability insurance models are expected to be introduced to provide even better insurance policies. For example, in the field of self-driving vehicles, increasing the pressure on system manufacturers and distributors while reducing strict consumer liability.

Improved customer service

Artificial intelligence will transform the way insurers and clients interact, allowing services to be provided 24 hours a day, seven days a week. Since the introduction of AI in life insurance, communication with clients has increased across all digital channels. As a result, the insurance business can be set up to make decisions for them, whether it’s purchasing policies, reporting losses, managing security, or simply providing assistance.

Clients have taken notice of such digital accessibility. The insurance industry’s internet platforms have witnessed a large rise in interactions, more policies sold, and more damage recorded. Using artificial intelligence, it is possible for a person to insure themselves and their property in a matter of minutes.

Flexibility and efficiency

Users can receive life insurance through places and gadgets that they already use in their daily lives. This gives them a clear picture of all their insurance and the ability to perform self-service tasks in a language that they understand. Technology has played a critical role in everything, allowing insurance companies to provide products and services to citizens even in the most difficult of circumstances, with the prospect of immediate information and guidance.

Life insurance also focuses on tailoring its digital products and services to the context in which the customer is placed, as technology increases the potential to adapt to an individual client. We’ll note that for many people with Diabetes, you’ll probably not qualify for these advertised products. You’ll still have to seek out a more traditional path to obtaining life insurance coverage.

Conclusion

Because it deals with enormous amounts of data and repetitive operations, the insurance industry was one of the first to adopt artificial intelligence. Insurers will continue to play a critical role in limiting, managing, and transferring new risks arising from the use of artificial intelligence. Traditional insurance coverage will need to be adjusted to protect consumers and businesses.

Certain risks to which businesses are exposed, such as cyber-attacks, business delays, product recalls, and reputational damage, will require increased attention from insurers. Thankfully, AI will also help prevent any risk that life insurance can face.

We’re excited to see what the future holds for the life insurance industry, and its offering to people with Diabetes. Over time, things are improving in terms of the rates, and different options a person with Diabetes can be approved for. Lots of positive progress is being made.