Will Artificial Intelligence Affect Short-Term Insurance?

Are intermediary financial service providers still needed today?

Managing your money can be complicated, bewildering and stressful. An advisor who has the necessary qualifications and experience should benefit your insurance status in a number of ways. By gaining a comprehensive understanding of your profile and requirements first and then conducting a thorough evaluation of what the most beneficial policy for you would be, such an intermediary becomes far more than an insurance salesman.

An advisor who is skilled, specialised and trustworthy should offer investment solutions and simultaneously ensure that you are provided with the best coverage at the optimum cost from the market. He should ensure that you receive regular updates on the policy status and keep you informed about new policies that might benefit you more. When a claim arises, such an intermediary should relieve you of the bother of having to attend to all the irksome formalities attending the submission.

It might seem more affordable to cut him out and save costs, however, this could end up costing you far more in the long run. It is a lamentable reality that there are insurance agents who will take advantage of your confusion or lack of policy knowledge. They are more intent on finding a need that their insurance product can address than on covering your needs. One should guard against being sold policies that could result in inadequate returns or you losing money on investments: such unscrupulous individuals abound and care more about their company’s profit margin and their own financial rewards from policies sold to clients. Only an objective, trustworthy financial advisor can safeguard you against such abuse.

Nowadays, with Google and IBM in a race to build the first quantum computer, a third option has presented itself: Artificial Intelligence (AI). Automation with supercomputers is not a future threat; it is a present reality and will bring rapid and drastic transformations to all forms of industry, insurance included, within the next five to ten years. Insurance professionals will need to be trained to deal with the exponential leaps in this sophisticated, new technology. It will require sufficiently flexible and skilled employees to deal with innovations that can save both the company and their clients a great deal of time, money and legwork.

Main areas where insurance companies will be likely to implement AI

Chatbots: For those who have the required messaging apps on their phone, chatbots can already answer basic questions, sell insurance products and even process claims.

Marketing and Underwriting: In their bid to stay ahead of competitors, AI (artificial intelligence) can provide insurance companies with fast and accurate information that will improve the speed and quality of services they offer customers. AI also promises to be able to create personalised profiles that reflect individual needs or preferences. This will bring the benefit of being able to source and identify the insurance package data that will suit a client best. It will prevent wasted time and insurance solution errors for the company and the customer.

Data: With insurance, everything rests on data. With AI, using data-intensive quant tools, it can be collected faster and stored in vaster quantities. Some insurance executives believe it will even be able to do so more accurately and be able to detect and prevent fraudulent claims.

Yet, the intermediary, or your financial advisor, remains essential. Only a person can absorb pertinent, first-hand knowledge of or information on different aspects of your financial situation: a crisis you might be experiencing, financial threats or new expenses, your debts, and your future goals. It is only the human judgement that can inject your insurance policy with flexible and personal meaning.

Your insurance professional will soon, inarguably, be dealing with the superior speed and data storing capabilities of a quantum computer in order to keep providing people with options unique to them as individuals. Nevertheless, a financial advisor’s input will have the upper hand over Artificial Intelligence in an essential way: only a human being can be sympathetic to the complexity of your particular circumstances and limitations and, more important, meaningfully interpret the vast scope of your dreams for an enriching future.

BellRyck Offers Peace of Mind

The BellRyck Financial Group boasts a proud history spanning three decades. We offer short-term insurance, as well as long-term financial investment products and advisory services through our specialist network of service providers.

Our commitment to fostering lasting relationships built on trust and personal service has allowed us to create valuable partnerships with both individuals and businesses. Prescribing to the highest standards of ethics and integrity, we have developed the acumen and flexibility to successfully evolve with the changing financial needs of our clients.

www.bellryck.co.za

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