Today’s technological advancements are reshaping industries, and the insurance sector is no exception and is due for a tune-up with Generative (GenAI) as a mechanic holding the wrench. This powerful technology is going to streamline processes, personalize experiences, and put the brakes on inefficiencies.
With GenAI, Persistent understands that the vehicle insurance policy management landscape is undergoing a seismic shift, and to meet emerging needs we’ve developed a proof of concept to showcase the use of GenAI capabilities using IBM watsonx™ for process improvement in insurance. Persistent has developed an all-in-one application with multiple user personas (end users, insurers, etc.) and uses vehicle data to highlight varied responses from large language models (LLMs) with diversified inputs. GenAI can assist insurance companies (insurer/claim adjuster) with risk management, back-office and underwriting for vehicle insurance policies, and at the same time provide concise and consistent customer experiences out of the box with no-code conversational AI features for policy holders. For end users, the solution provides personalized insurance quotes and recommend vehicle policies. Buckle up as we explore how GenAI and our IBM watsonx solution transforms insurance as we know it by automating crucial tasks to save time for insurance agents, ensure fair and competitive pricing for customers and minimize human error.
The diagram depicted above illustrates an AI-driven web application which can seamlessly integrate with the IBM watsonx platform. IBM watsonx Assistant can effortlessly embed within the Python web app as a virtual chatbot providing an intuitive AI-powered user interface. This combination of communications with policy holders boosts insurance agent productivity by reducing the number of service requests and improves user experiences.
From Delays to Fast Forward: Personalized Quotes in a Flash
Traditionally, generating insurance quotes involves manual calculations based on factors such as a vehicle’s make and model, driver’s age and driving history and geographical location. However, with GenAI, this process becomes automated and highly personalized. With our solution, a web application sends historical claims data, vehicle specifications and customer profiles including age, gender and other behavioral traits to IBM watsonx Assistant. It has predefined workflows for additional user inputs and uses LLMs to classify the risk associated with insuring a particular vehicle. Based on the risk identified, the Assistant calculates a tailored quote within seconds and replies to a user.
From Paper Trail to Paperless: Streamlined & Expedited Claim Validation
When accidents happen, the last thing policyholders want is a lengthy and frustrating claims process. By analyzing forms and policy documents submitted by an accident claimant, GenAI uses entity extraction, Q&A functionality and retrieval augmented generation (RAG) to check for the policy coverage, proper name on forms and the policy document, policy validity, claim amount limits and any inconsistencies or frauds, ensuring fair and efficient claim submission, processing and settlements. This frees up human adjusters to focus on complex cases while ensuring prompt resolution for more straightforward accident claims.
Beyond One-Size-Fits-All: Intelligent Policy Recommendations
Selecting the right insurance policy can be a daunting task, especially with the myriad of options available. In such a scenario, IBM watsonx Assistant acts as a virtual advisor, understanding a customer’s specific driving habits, lifestyle, coverage requirements and risk tolerance based on data passed from the web application and other user inputs. Apart from having conversational AI, the web application in real time also shows a comparative analysis of selected policies depending upon the user interactions with the Assistant and responses from LLMs and recommends additional policy add-ons.
With this kind of functionality, the solution empowers customers to make informed decisions based on their unique needs, fostering trust and transparency within the policyholder-insurer relationship. Whether it is comprehensive coverage for a new luxury car or liability-only coverage for a budget-friendly vehicle, GenAI ensures that customers receive policies tailored to their unique needs without under- or over-insuring.
As GenAI technology continues to evolve, it will play an increasingly crucial role in shaping the future of vehicle insurance, making it more accessible, transparent and customer-centric than ever before. With GenAI at the wheel, we can expect a smoother ride for both insurers and policyholders. So, fasten your seatbelts and embrace the exciting world of AI-powered vehicle insurance — and contact us to learn how we can deliver benefits for your customers.
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