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6 AI Applications that are transforming Insurance Now

With an insurance boom in the Asia-Pacific (APAC) region, Insurers are competing for developing superior technological capabilities in order to meet their customers’ demands better. Therefore, to stand out from the competition, companies are regularly adapting new tactics to ace the game, and AI is one of them.

According to a study, more than 80 per cent of insurance CEOs mentioned that AI was already a part of their business model or would be within the next three years.

AI has honed the way increasing data, computing capabilities, and evolving consumer expectations are handled and executed by making processes more automated and efficient. The role of AI has evolved over time to fulfil complex business requirements. In this blog, we will cover six significant areas in which AI is transforming insurance companies, but before proceeding, let’s take a look at how AI trends within Insurance.

Trends of AI in Insurance (50-100 Words)

Google Trends, reveals a constant uptick in AI-powered insurance applications acquired by the insurers between 2015-2020.

Google Trends, reveals a constant uptick in AI-powered insurance applications acquired by the insurers between 2015-2020. 

However, the impact of COVID-19 in 2020 has slowed this pace down a little. This is because insurer spending on AI systems had taken a back seat to mitigate other more pressing challenges that required allocation of budgets to those priorities. But in the Post- COVID world, it is expected that AI and insurance have a long way to go together.

How AI is Transforming the Insurance Industry 

Artificial Intelligence has driven positive impacts on many different business models, and insurance is no exception. Also, it works much better with AI because insurers have a treasure-trove of data, which is the primary fuel to drive successful results with AI.

Among all changes AI brought, the six major ones are mentioned below:

  1. Claims acceleration

AI is applied to automate or accelerate the process of claim. Claims processing includes a lot of tasks like reviewing, investigating, making adjustments and remittance or denying. If solely done by humans, the following issues might occur:

  • Inconsistent processing and more probability of errors
  • Varying data formats and time-taking management 
  • Staff training and process updating sessions

These processes can be accelerated with new Artificial Intelligence capabilities, leading to claims being paid in hours or days rather than weeks. However, likely, this kind of automation for claims acceleration will only work in low impact claims. For complicated requests, AI, along with human interaction, will be able to achieve the goal.

  1. Price sophistication using GLM

Insurers widely use AI techniques like GLMs (Generalised Linear Models) for price optimisation in tar and life assurance fields. Pricing optimisation allows companies to understand their customers better and enable them to balance capacity with demand and drive better conversion rates. 

Moreover, adding non-traditional data like unstructured data and written reports can also augment price optimisation and make better decisions.

  1. Using IoT 

IoT (Internet of Things) is one of the most significant AI opportunities within the insurance industry. These devices are getting a lot of traction from the users and are beneficial for insurance companies to assess customer risk profiles. Several IoT smart home devices are being used to alert customers when there are issues within their home or commercial property, for example, leak/moisture sensors. Using them, along with AI, helps insurance companies to offer better services.

For example, predictive analytics models could be built using the datasets of customers using leak detection sensors to predict which customers might be vulnerable to a leak. This prediction will help companies to send out repairers to replace faulty pipes before they burst to lead to claims.

  1. Personalised Services and Recommendations

Personalised services help customers to match their needs and lifestyle. Artificial Intelligence creates personalised services using customers’ product ratings, demographic data, preferences, interaction, behaviour, attitude, lifestyle details, interests, and hobbies. This helps companies in selling the right product to customers and target the correct audience. An Accenture study suggests that 80% of insurance customers are looking for more personalised experiences, and AI helps companies do so. 

Moreover, with the recommendations based on the customer’s behaviour or past purchases, AI shapes the way things are recommended to the customers. For example, a customer looking for health insurance would be displayed with offers on health insurance. Also, this helps in sending meaningful marketing messages.

  1. Eliminating underwriting risks

Humans solely did the process of underwriting. Therefore, the probability of getting errors was quite more and also it was a time-consuming process. But AI technologies have worked their way into this area of insurance and made the process quick and efficient without manual efforts.

  1. Affective computing (Emotional AI)

Also known as emotion AI, Affective computing is used to understand customers better and make decisions according to their mental/emotional states. It identifies, processes, and simulates human feelings and emotions and behaves and replies based on the same. This technology is shaping the Insurance industry in the following ways:

  • Fraud detection: Voice analytics is used to understand if a customer is lying while submitting a claim. AI makes this analysis based on various previous data sets and customer behaviours.
  • Intelligent call management: Customers running short on time or are angry are directed to more experienced call agents to ensure their satisfaction. 

New Adaptations

This ever-changing digital era is continuously adopting new technology. Therefore, another critical element to understanding the industry transformation is comparatively learning about the existing techniques and the new ones. 

The chart mentioned below contains some generic high-level use cases that many Insurance organisations are adopting. The abbreviations used are:

  • ML: Machine Learning
  • NLP: Natural Language Processing
  • SVM: Support Vector Machines
The chart contains some generic high-level use cases that many Insurance organisations are adopting.

Conclusion

So far, the blog must have helped you know how AI is transforming the Insurance industry in various ways. You can adapt to these modifications in your business model to stay ahead in the competition. However, it is worth mentioning that AI to an Insurance company could be beyond standard use cases and be viewed as a way to augment the role of data assets. There’s a lot to gain from the AI-first world for insurers, and also a lot to lose if AI is not embraced and well understood.

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What If the Sun Took a Day Off?

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Ever wondered what life would be like if the Sun took a day off? Picture waking up to an Earth shrouded in darkness, where temperatures drop dramatically within hours, plunging the planet into an icy chill. Plants, deprived of sunlight, would halt photosynthesis, leading to a food production crisis. Our reliance on renewable energy would face a sudden halt, causing widespread blackouts and chaos in cities across the globe.

A day without the Sun would throw our world into chaos! Luckily, that’s never going to happen (at least in our lifetime!). But this thought experiment underscores the Sun’s critical role in our lives and highlights why harnessing solar energy is so vital. While we’re increasingly turning to solar power, we are still missing out on capturing a massive amount of solar energy that falls on Earth every single day.

How Much Solar Energy Are We Missing Out On?

Every day, the Earth receives about 173,000 terawatts of solar energy from the Sun—more than 10,000 times the world’s total daily energy consumption. Despite this abundance, we only capture a tiny fraction of this energy. In 2023, solar energy accounted for just 4.5% of global electricity generation—a huge opportunity waiting to be tapped.

If we could capture just a small percentage of the Sun’s energy, we could power the entire world many times over. The total solar energy that hits the Earth in just one hour could meet the world’s energy needs for a full year. Yet, due to limitations in solar panel deployment, technology efficiency, and energy storage, the vast majority of solar energy goes unused each day.

As we improve solar technology and infrastructure, capturing more of this energy becomes not just a possibility but a necessity for a sustainable future. Let’s dive into how cutting-edge technology is making solar energy more accessible and efficient, helping to turn this untapped potential into real, usable power.

How Tech Makes Solar Adoption Easier

Customer-centric technology is revolutionizing the way we adopt solar energy. Imagine an app that allows you to simply point your smartphone at your house to estimate how many solar panels you need, their ideal placement, and the energy they can generate.

Here are the key benefits of this innovative approach:

  • Precision: By capturing images of your property through satellite, the app calculates the optimal placement of solar panels for maximum energy production. Studies have shown that precise placement can increase efficiency by up to 20%.
  • Customer Engagement: Users receive real-time insights into their energy production, helping them understand their solar power system better, whether they’re using Tesla solar panels, solar power generators, or even solar attic fans to optimize home energy usage
  • Seamless Experience: With user-friendly interfaces, consumers can easily monitor their solar systems remotely and receive updates on their energy output. This accessibility is crucial for encouraging the wider adoption of solar technologies.

The Tech-Driven Shift Toward Sustainability

As solar technology evolves, so do the solar panels themselves. Innovations like Tesla solar roof systems, flexible solar plates, and bifacial panels are redefining what’s possible in renewable energy. Even smaller systems—such as portable solar generators and solar air conditioners—empower homeowners to harness solar power efficiently.

Photovoltaic (PV)  panels, the cornerstone of solar energy, have seen incredible advancements, now boasting efficiencies of up to 22%. This means fewer panels are needed to produce more energy, making solar energy more effective for a wide range of applications, from solar shingles to off-grid systems.

Moreover, the push towards cradle-to-cradle sustainability is reshaping the industry. New solar panels are being designed with recyclability in mind, reducing their environmental footprint. Innovations in recycling technology now recover up to 95% of materials from end-of-life panels, ensuring that even the oldest solar systems contribute to a greener future.

While solar technology continues to advance, solar panels themselves are becoming more efficient and environmentally sustainable. Innovations such as systems, flexible solar plates, and bifacial solar panels are pushing the boundaries of what’s possible in renewable energy. Even smaller systems like portable solar generators and solar air conditioners are empowering homeowners to tap into the power of the Sun efficiently and sustainably.  Photovoltaic (PV) panels, the cornerstone of solar energy – now boast efficiencies of up to 22%​. This means a smaller array of solar panels for home or commercial use can generate more electricity. This makes solar energy systems more appealing and effective for various applications, from solar roof shingles to off-grid solar systems.

Moreover, the move toward cradle-to-cradle sustainability—where solar panels are built from materials that can be easily recycled—has gained traction. This reduces the environmental footprint even further. Innovations in recycling can recover up to 95% of materials from end-of-life panels, According to PV Cycle​, with room for improvement in recycling.

Making Solar Affordable and Accessible

Historically, one of the biggest barriers to solar adoption has been the cost. But things are changing fast. Innovations in financing models, such as Power Purchase Agreements (PPAs) and solar loans, have significantly reduced the financial burden of installing solar systems. According to the Solar Energy Industries Association (SEIA), the average cost of solar installation has dropped by over 70% in the last decade.

Couple that with federal and state incentives like the Investment Tax Credit (ITC), which provides a 30% tax credit on solar installations, and solar energy is more affordable than ever. Net metering programs, which allow homeowners to sell excess energy back to the grid, further enhance savings, making solar not only accessible but also financially rewarding.

Conclusion

The future of solar energy goes far beyond rooftop panels—it’s about making the entire solar experience intuitive, accessible, and sustainable. With smart apps and tech-driven tools, consumers can now manage their solar energy systems with just a few taps on their phones, making the shift to green energy simpler and more engaging.

At Mantra Labs, we’re at the forefront of this solar revolution. We’ve helped some of the world’s largest solar providers develop cutting-edge, customer-friendly solutions. Our mobile apps allow users to estimate solar panel needs, monitor system performance, and even track their environmental impact—all from the convenience of their smartphone.

Together, with innovative tech and a commitment to sustainability, we’re building a future where solar energy isn’t just an option—it’s the smarter, more accessible, and greener solution for everyone.

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