Policy explanation is a very time-consuming process for insurance companies. Outside of claims, most of the calls to insurers fall under the category of “Am I covered?” questions. Applicants and clients want to understand which events are covered and which are not, as well as coverage limits, within a policy.
Carriers face a number of challenges in the policy explanation process, including:
- Difficulty understanding complex documents. It isn’t just covered persons that struggle to understand insurance policies; professionals can have a hard time interpreting coverage, exclusion, and limits.
- Critical need for accurate policy comparison. Accuracy is vital for applicants considering coverage options. It is also important for insured clients to know whether events are covered prior to making decisions.
- Inefficient communication. The amount of time professionals dedicate to reviewing covered items with policyholders makes the process expensive for insurers.
The Role of Instabase AI Hub in Policy Explanation
By leveraging large language models (LLMs), the Instabase AI Hub addresses each of these core challenges in the policy explanation process. Many policies are scanned via OCR technology and stored as PDFs with carriers. LLMs enable instant understanding of these complex, variable PDF documents.
AI Hub automates and streamlines many insurance processes, including policy explanation. It extracts all relevant information and provides necessary insights for accurate policy understanding.
Using AI Hub for automated policy explanation
AI Hub automates the policy explanation process. Initially, insurance reps can use it to search complex documents and provide accurate answers to coverage questions. However, moving forward, it is expected that customers will soon be able to utilize AI for self-managed chats about policy questions directly from a carrier’s website.
Instabase AI Hub is able to quickly analyze policy terms to provide answers to coverage questions and simplify comparison of policies. AI Hub can also provide a summary of covered versus non-covered items in a given policy. As an example, vehicle and equipment rentals are often not covered within individual home or auto policies. Customers ask about coverage in these cases to confirm protection, or to determine the need to purchase damage protection from the rental provider.
In addition to its customer service advantages, AI Hub contributes to equal access to understanding when selling insurance. This is a critical legal benefit as it simplifies communication and removes barriers to financial literacy that contribute to misunderstandings and painful lawsuits.
Benefits of Using AI Hub for Policy Explanation
Applying AI Hub to the policy explanation process provides insurers with the following key benefits:
- Improved efficiency. The LLM allows immediate, efficient analysis of policy terms to quickly answer coverage questions and deliver summaries of coverage and exclusions.
- More accurate communication. It is hard for insurance reps to convey accurate information on coverage when they are confused themselves. AI Hub is highly accurate in communicating coverage details to agents.
- Handling of complex policy documents. AI Hub has no trouble immediately handling complex, variable policy documents. Thus, insurers don’t have to worry about a lag in processing following implementation.
The future of policy explanation with AI Hub
AI is transforming the insurance industry, including the critical area of policy explanation. Policy explanation and policy comparison processes historically create a drain on carrier reps and resources. Confusing coverage terms also cause customer service problems and lead to costly lawsuits related to equitable access.
With AI Hub, you optimize efficiency, eliminate barriers to access, and optimize customer service. Request a demo to see the benefits of AI Hub for your insurance business!
