The AI Book

CHAPTER 25Improving Policy Life Cycle Management with AI and Data Science

By Jeff Manricks¹ and Dan Donovan²

¹Sales Director UK Region, Shift Technology

²Head of Customer Success, Shift Technology

There is no argument that fraud is a huge problem plaguing the global insurance industry. Millions of dollars are lost each year to fraudulent claims, ultimately raising the cost of insurance for everyone involved. To combat the problem, the industry is already doing some interesting things when it comes to using artificial intelligence (AI) to root out fraud within the claims process. Spotting the potential for fraud at first notification of loss (FNOL), and therefore not paying out for non-meritorious claims, is already generating tremendous benefits for many insurers around the world.

But what if we could do more? What if we could apply AI much earlier in the process? What if we could identify the potential for fraud at the point of sale, i.e. at the very beginning of the underwriting process? And perhaps even more ambitiously, what if we could apply AI to achieve better policy life cycle management, improving the process for insurers and the insured alike?

The good news is that we absolutely can, but only if we begin thinking more holistically about the insurance policy itself – from underwriting, policy amendments, claims and agency audits, all the way through to renewal.

So, what does not only detecting but also preventing and managing risk, leakage and fraud across the life ...