The Role of Artificial Intelligence in Streamlining Life Insurance Processes

By Anna Manyara, Chief Operating Officer – Jubilee Life Insurance

Artificial intelligence (AI) will undoubtfully continue to revolutionize various sectors, and the insurance industry is no exception. Traditionally known for some rigid practices, the sector is embracing AI to streamline processes, enhance customer experiences and boost efficiency – resulting in improved operations and heightened customer satisfaction.

A prime example of AI’s impact is in underwriting. Underwriting, the process of assessing risk and determining the cost of accepting it, has historically been a labour-intensive process that relies heavily on data analysis and human judgment.

AI automates data collection and analysis, making underwriting faster and more accurate, improving accuracy and decision-making in the life insurance industry. By using machine learning models, insurers can predict risk more accurately, resulting in competitive pricing and customized coverage options for policyholders.

Additionally, AI-driven underwriting enhances the customer experience by drastically reducing customer onboarding time. Automated systems can complete many routine underwriting tasks almost instantly, allowing customers to receive decisions within minutes instead of weeks.

This speed and efficiency are not only improving customer satisfaction and demonstrating insurers’ responsiveness and customer focus but also allowing insurers to concentrate on more strategic business matters. By automating routine tasks, companies can allocate more resources to innovation, market expansion and personalized services, driving overall growth and competitiveness.

AI-powered systems are also significantly expediting the claim settlement process. Claim processing has been a time-consuming task involving extensive paperwork, manual data entry and multiple layers of approval.

AI technologies are streamlining this process by automating data extraction, verification and analysis. Machine learning algorithms are quickly assessing claims by cross-referencing them with historical data, policy details and relevant documentation. This automation is accelerating the approval process while reducing the likelihood of human error and inconsistencies.

Moreover, AI actively identifies potential fraud by detecting anomalies and suspicious patterns in data. Recently, I came across a review by the Central Bank of Kenya (CBK) on technology developments in the banking sector, and it was fascinating to learn how lenders in the country are harnessing AI to combat fraud and theft.

The review highlighted how AI is being used to identify suspicious activities, offering a significant boost to fraud prevention efforts. This insight underscores the growing importance of AI in enhancing security across various financial sectors.

At Jubilee Insurance, our digital transformation agenda is dedicated to enhancing processes and maximizing value for our customers. We have seen firsthand the transformative power of AI, which has significantly contributed to our operational success and efficiency. By integrating AI into our systems, we continue to improve service delivery, ensuring that our customers benefit from faster, more accurate and reliable insurance solutions.

As we look to the future, insurance companies and financial services firms must continue to embrace technological advancements to achieve business success and improve customer satisfaction. Artificial intelligence is leading a new wave of innovation in the life insurance industry, transforming underwriting, claims processing, customer service, fraud detection and prevention. By adopting and integrating AI, insurers can better meet their customers’ evolving needs, overcome market challenges and achieve sustainable growth. Embracing AI not only boosts efficiency and service quality but also helps businesses stay competitive and responsive in an ever-changing landscape.