A STUDY ON EVOLVING IMPACT OF AI

ON THE INSURANCE INDUSTRY

-BY
Vaishnavi Guthikonda
120422672009
INTRODUCTION:
In recent times, the insurance industry has welcomed a remarkable
change in the form of Artificial Intelligence (AI). This revolutionary
technology acts as a helpful companion, simplifying processes, and
enhancing the overall experience for both insurance companies and
customers.

One significant way AI contributes is by becoming a smart risk

checker. It functions like a knowledgeable friend, helping insurance
companies better understand risks. By analyzing vast amounts of data,
AI can quickly assess how safe or risky a situation is. This not only
improves the accuracy of insurance decisions but also enables
companies to adapt to changing circumstances more effectively.
AI's role as a friendly talker transforms customer service in the insurance
industry. It operates as a responsive chatbot, providing instant assistance to
customers at any time of the day.
This not only improves customer satisfaction but also makes insurance
information more accessible and understandable for policyholders

The technology also plays a crucial role in spotting potential issues and
fraudulent activities, functioning as a super problem spotter. By constantly
monitoring data for anomalies and suspicious patterns, AI helps insurers
identify and mitigate risks before they escalate. This not only safeguards the
interests of the insurance companies but also contributes to the overall integrity
of the industry.
 AI TOOLS USED IN INSURANCE
SECTOR:
Chatbots and Virtual Assistants: Providing instant customer support and
assistance.
Fraud Detection Tools: Identifying and preventing fraudulent activities.
Computer Vision for Damage Assessment: Assessing and estimating damages
through visual recognition.
Robotic Process Automation (RPA): Automating repetitive and rule-based tasks.
Blockchain for Smart Contracts: Ensuring transparency and security in policy
execution.
NEED OF THE STUDY:
The evolution of AI in the insurance industry represents a paradigm shift, driving
efficiency, enhancing customer experience, and positioning insurers to thrive in
an increasingly dynamic market. Data Analysis and Underwriting,threat of
fraudulent claims necessitates advanced tools for detection and prevention.
AI in customer service not only improves efficiency but also establishes a
foundation for long-term customer loyalty.Insurer can leverage AI tools to
analyze emerging risks promptly. Devices like telematics and wearables provide
real-time data, allowing insurers to make informed decisions.
The adoption of AI enables insurance companies to leverage predictive analytics,
offering insights into future trends, customer behavior, and potential risks.
 objectives:
● To analyse optimized customer service after AI use in industry.
● To study the impact of AI in strategic decision-making.
● To study AI role in fraud detection and prevention.
● To understand the recent AI tools used in personalization of Insurance Products.
● To study the role of AI in risk assessment.
RESEARCH METHODOLOGY:
Primary Data: Primary data refers to original data collected directly from first hand sources through
methods such as surveys, interviews, observations, or experiments. It is information that has not been
previously collected or analyzed and is specifically gathered for a particular research or analysis purpose.
Primary data is firsthand and is considered more reliable and accurate for the specific context or study at
hand, as it reflects the direct experiences or responses of the individuals or entities being studied.

Secondary Data: Secondary data refers to information that has been previously collected, processed, and
published by someone else for a purpose other than the current research or analysis. It is data that is not
directly obtained from first hand sources but is sourced from existing literature, reports, databases, or other
pre-existing sources. Researchers use secondary data to complement or supplement their studies, saving
time and resources. Examples include published research papers, government reports, and industry
statistics.
SCOPE:

The scope of AI in the insurance industry is vast and transformative, touching every
facet of the business. As insurers continue to embrace and integrate AI technologies,
they position themselves to thrive in an evolving landscape, offering improved
services, more accurate risk assessments, and enhanced customer experiences. The
journey towards a more technologically advanced and customer-centric insurance
industry is underway, with AI at its core.

The insurance industry, with its intricate processes and data-intensive nature, is
experiencing a revolutionary transformation fueled by Artificial Intelligence (AI). The
scope of AI in the insurance sector extends far beyond mere technological adoption; it
encompasses a paradigm shift in risk management, customer service, operational
efficiency, and overall business strategies.
 ADVANTAGES
● Data Analysis for Market Insights
● Cost Reduction and Operational Efficiency
● Fraud Detection and Prevention
● Automation of Routine Tasks
● Automation of Routine Tasks
LIMITATIONS
● Security and Privacy Concerns
● Dependency on Historical Data
● High Initial Costs
● Complex Implementation and
Integration
 REVIEW OF LITERATURE:
Article 2
Article 1
Title: Influence of AI in insurance sector
Title: AI is radically transforming the insurance
sector Author: MN Prajapati

Author: Muqbil Ahmar Year :2022

Year: 2023
Abstract:
By analyzing vast amount of data, including
historical claims records,markets trends and external
factors; AI can assess risk with greater accuracy and
speed. This empowers insurers to make data-driven
decisions when underwriting policies, enabling them
to price premiums more accurately and offer tailored
covered options.
Abstract:
Artificial Intelligence and Machine learning can help for
the better customer satisfaction, large data processing,
future trending, cost cutting, more accurate data
processing, fraud and anomalies detection and prevention
and more profits by reducing operating cost.
 cont..
Article 3
Title: AI in insurance
Author: Shilpi Agarwal, Narasimha Swamy
Year: 2022
Abstract:
AI applications and uses can make the task easier for the
insurance industry. The industry is one of the old and important,
with highly regulated interference. As the industry is highly
regulated, it is slower to adopt technological innovations
compared to others. For any kind of claim reimbursement or for
issuing a new policy, customers need to go through the time-
consuming paperwork and bureaucracy of many insurance
companies, even in this digital age.AI can make the dynamic
changes in legal sector like reducing paperwork and automating
report generation and legal advice.
Article 4
Title: AI in Digital Transformation the
Insurance Market:
Author: Holland, Christopher
Year: 2022
Abstract:
A general business process model of insurance
companies is used to structure the analysis. Five AI
applications are described using an insurance firm-
customer data flow diagram, which illustrates the
marketing impact of AI technology and shows the
nature of the business value creation process. The
results are generalized into an AI customer lifecycle
model, which has broad applicability to digital
transformation projects
COMPANY PROFILE:
Happy Finserv Pvt.ltd. is a Non-govt company, incorporated on 13 Feb, 1999. It's a private unlisted
company and is classified as company limited by shares. Company's authorized capital stands at Rs 3.0
lakhs and has 83.33333% paid-up capital which is Rs 2.5 lakhs.

Happy Finserve Pvt.ltd. is in the business from last 23 years .Happy Investor Finserv LLP receives a
commission of 0.05-0.1% in liquid funds, 0.3-0.8% in debt fund and 0.6 to 1% in equity funds directly
from asset management companies on recommending mutual fund schemes.

Director: Deepesh Mehta

Services:
They offer various services based on requirement:

On Execution Basis:

● Comprehensive financial planning for resident individual

● Comprehensive financial planning for Nonresident individuals
● Wealth management

On Transaction Basis:

● Mutual funds investment

● Corporate fixed deposits
● Health Insurance
● Life insurance
● Motor Insurance
● Property insurance
Thank you!
.