How Will AI Affect My Insurance Rates?

NEWPORT BEACH, Calif. - Aug. 6, 2024 - PRLog -- In many cases AI is a good thing, because consumers save some money and have answers to their most pressing questions in a tap.

3 Common Types of AI Used by Insurance Companies

Understanding how AI affects your insurance rates will help you better understand how your premiums are shaped and how you can lower your rates, so we've broken it down for you below.

Here's also some information on the level of service you should expect to receive from an insurance company that relies on chatbots and other claims-related technology.

1. Risk Assessment and Underwriting Using AI

• Faster Application, Fewer Questions
  Because AI can scrape a multitude of sources to derive data sets, you may be asked fewer questions when you apply for an insurance policy, but don't be fooled into thinking that the insurer doesn't know much about you! They will probably have more accurate information about your home and car than you do.
  
  If you are flagged as being a high-risk applicant, you may be asked additional questions. If you're buying a life insurance or health insurance policy and worry that AI will pick up on and misinterpret your health issues, have your doctor's explanation of the condition and compliance of treatment ready for submission.
• Enhanced and Far Reaching Data Analysis
  Read more at https://smartfinancial.com/ai-insurance-rates