Role of AI in buying and renewing motor insurance or any other insurance | The Financial Express

Role of AI in buying and renewing motor insurance or any other insurance

AI has played a major role in the motor insurance industry, making it easy for companies to carry out car inspection processes.

Role of AI in buying and renewing motor insurance or any other insurance

By Ankit Agrawal, Co- Founder and CEO InsuranceDekho

With the advent of technology, it has become easy for insurance companies to carry out insurance renewal and other processes. Over the years, artificial intelligence has developed to a great extent, making it possible for companies to carry out tech driven operations in an easy way, including the insurance industry. With the impact of AI, application of machine learning, data modeling, the entire insurance process has been smooth, thereby increasing customer satisfaction to a great level. AI has played a major role in the motor insurance industry, making it easy for companies to carry out car inspection processes, thereby automating purchase, claims and renewal processes to a great extent. 

The Motor Vehicles Act, 1988 makes it mandatory for a vehicle owner to drive with a valid car insurance policy. Therefore, renewal of car insurance on a timely basis is important. This has become possible due to AI. Read on to know how AI based technology has impacted the motor insurance purchase and renewal process. 

Role of AI in car insurance purchase and renewal process 

Buying or renewing car insurance online is easy, simple and less time consuming. Today, almost all insurance companies have a solid presence online, thereby making it easy for policyholders to renew and purchase insurance on time. With the evolution of AI, insurance companies have also announced the car inspection process online which earlier required human intervention and was time consuming too. 

Artificial intelligence thus helps insurance companies save on time and cost, accelerating the purchase and renewal process. 

How does AI technology work? 

Under the AI based inspection process, with the help of an application, the policyholders are able to provide a 360 degree view of their vehicle over video call or by uploading images. This process is commonly known as self inspection process as it does not require any human assistance at any point. On submission of the videos or photographs of the vehicle, the insurance company evaluates the condition of the vehicle and accordingly approves the proposal and decides on the car insurance premium. 

Similarly, in case of fresh purchase too car inspection can be done online. 

Objective of AI in buying and renewing car insurance 

Below are few of the objectives of AI

  • Reduce human intervention, thereby making vehicle purchase, claim and renewal process seamless 
  • Car insurance premium calculation is done instantly by quickly checking on the extent of damages 
  • Cost of repair in case of claim is also calculated quickly 
  • Beneficial for both policyholders as well as insurance companies 

Benefits of AI technology in motor insurance 

AI based motor insurance process provides the below benefits 

No physical inspection required 

With AI, insurance companies do not need to send a surveyor to inspect the vehicle as the process can be easily done online by shooting a video or clicking pictures of the vehicle. 

Saves time 

As per reports, over 15000 car insurance renewals are physically done every month. With AI, the process has become less time consuming and quick, requiring no human effort. 

No paperwork required 

The online process does not require the policyholder to do any paperwork as it can be easily done by uploading the required documents online. 

Quick approval process 

Physical inspection process does take around 3-4 days. However, with AI insurance companies offer quick approval simply by checking the video or the pictures shared. 

Conclusion 

AI has revolutionized the entire insurance industry including bringing a change in underwriting, fraud reduction, enhancing customer experience and also offering customers usage based insurance services. 

Author: Ankit Agrawal, Co- Founder and CEO InsuranceDekho

Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.

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First published on: 29-10-2022 at 11:33 IST