AI and RPA are only beginning to transform how business is done in the insurance industry. We can expect to see burgeoning usage in operations, customer service, risk assessment and mitigation and regulatory compliance. (Image: Shutterstock)

Insurance companies are only beginning to harness the potential of artificial intelligence (AI) and robotic process automation (RPA). AI refers to computer systems that can mimic human capabilities by learning and solving problems. RPA is an emerging form of business process automation technology based on using software robots or AI "workers."

Here is a look at five notable AI/RPA trends in the insurance industry.

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1. Machine learning for fraud detection and risk assessment

Humans learn from experience and thus can predict outcomes. Insurers are beginning to use AI algorithms with big (and small) data to accurately predict outcomes. Machine learning, or AI, is being used to improve customer service, guide the development of new products, detect risks and cross-promote products. It is helping insurance companies to improve their efficiency by facilitating damage assessment, identifying billing anomalies, boosting fraud detection, and identifying lapsed policies.

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