What AI tools and tech are insurers using today?

Let’s break down the main AI tools that insurance companies use to improve customer service. 

Most solutions combine several smart technologies into one system to make things run smoothly. These are the key building blocks of AI customer service for insurance, helping companies automate support while keeping a human touch.

Here are the key tools:

Some companies go even further. For example, Strada’s AI voice agents answer calls, verify who the customer is, start important workflows like opening claim files or scheduling renewals, and update all records instantly, all without needing IT support.

Once you know the tech, it’s easier to see how it transforms big pain points like claims and risk. Let’s explore how AI makes these processes faster and fairer.

How can AI improve claims and risk management?

AI can do a lot more than just answer customer questions in insurance. It helps make the whole claims process faster and easier while managing risks better.

Let’s visualize what a real AI-driven claims process looks like from start to finish.

And let’s see the details.

One big help is with paperwork. AI uses technologies like OCR and AI to quickly read and understand documents such as forms and IDs. This means less manual typing, fewer mistakes, and faster claims processing.

In AI customer service for insurance, claims management becomes proactive – AI predicts issues before customers even reach out. It looks at patterns from many claims to spot anything unusual or suspicious that people might miss. This helps approve real claims quickly and prevent fraud.

AI in insurance customer service doesn’t just handle chats. It transforms entire workflows, from claims to compliance. Risk assessment gets smarter, too. By using data from things like driving habits, wearable devices, and weather, insurers can tailor coverage to each person and predict possible claims. 

For example, usage-based insurance changes premiums based on actual behavior, making pricing fairer and more accurate.

Here are a few simple, practical ways AI is already reshaping insurance operations:

• Instant claim triage → automatically categorize and route claims based on severity or type.

• Smart document handling → extract key details from PDFs, photos, and forms without manual entry.

• 24/7 virtual assistance → provide customers with accurate answers anytime, across chat, email, or phone.

• Proactive policy updates → detect life events or data changes that trigger coverage adjustments.

• Fraud detection → flag unusual patterns in claims or customer behavior before payouts.

• Personalized risk scoring → combine data from wearables, IoT devices, and driving apps for precise pricing.

• Regulatory compliance checks → verify documentation and process steps automatically to meet audit standards.

Dynamic pricing is another way AI helps. It uses data to set insurance rates that match how risky things really are. This helps insurers stay competitive and profitable.

AI also keeps insurers compliant with laws and rules. It monitors interactions and makes sure everything follows regulations like the EU’s AI Act. This lowers legal risks and builds customer trust.

A great example of AI improving customer success is Strada, which now automates the entire claims process from the very first customer interaction. Instead of hours of manual coordination, everything happens in minutes:

• Captures First Notice of Loss (FNOL) details automatically over phone or SMS, 24/7, no hold times.

• Creates a new claim file instantly in the carrier’s AMS or claims system.

• Assigns the right adjuster automatically based on claim type, policy, or location.

• Sends required documents to the insured by SMS or email, with full tracking.

• Updates CRM and AMS records in real time, syncing every action across systems.

• Notifies internal teams (claims, underwriting, service) the moment the file is created.

• Launches follow-up workflows like payment reminders or inspection scheduling automatically.

With Strada, what used to take hours of back-and-forth now happens instantly, making claims faster, more accurate, and far less stressful for both customers and teams.

This cuts down manual work from hours to minutes, improving speed and customer happiness.

But AI doesn’t just work behind the scenes. It changes how customers feel. Next, you’ll see how AI creates personal, one-to-one experiences at scale.

How does AI personalize the customer experience?

AI makes insurance customer service smarter and more personal. Instead of just answering questions, AI learns what each customer prefers and responds based on their behavior.

For example, AI uses data from things like driving habits or health trackers to offer personalized policies and prices. This means customers pay fairly and are encouraged to stay safe and healthy.

Chatbots and virtual assistants go further by acting like personal advisors. They help customers find the best policies, compare options, and get answers quickly. Studies show this makes insurance easier to understand and more engaging.

AI also reads how customers feel during chats or calls. If a customer seems frustrated or happy, AI changes its tone to sound more caring or upbeat. This makes the conversation feel more human and builds trust.

Insurers can also use AI to reach out at the right time. If someone might cancel their policy, AI spots this early and sends special offers to keep them. Customers get reminders about their coverage or updates that matter to them.

Strada’s AI takes things even further during renewal calls. It focuses on important customers and offers deals based on what it learns while talking to them. This makes customers feel valued and helps insurers keep their business.

Here’s how AI boosts renewal success:

1. Prioritizes high-value or at-risk customers automatically.

2. Suggests personalized offers or discounts in real time.

3. Detects churn signals and flags accounts for follow-up.

4. Updates CRM and policy systems instantly after each call.

5. Tracks renewal outcomes to improve future recommendations.

Overall, AI helps insurers guess what customers need before they ask. From fair pricing to friendly, personalized messages, AI creates faster, smarter, and more caring service.

Personalization is just one piece of the puzzle. AI doesn’t stop at understanding customers. It also takes action behind the scenes, simplifying the everyday tasks that keep policies running smoothly.

How can AI simplify policy servicing and renewals?

Most insurance service calls are about small but important things: updating an address, adding a driver, or checking renewal dates. These tasks take time, but they don’t always need a person to handle them. 

AI can now take care of many of these steps automatically, making service faster and easier for everyone.

When a customer calls or texts, AI can verify their policy, make simple changes in the management system, and send confirmation by SMS or email — all in one smooth conversation. 

During renewals, AI can remind customers about upcoming dates, answer questions about premium changes, and even alert a human agent if someone seems unsure about renewing.

With platforms like Strada Workflows, every call or message can trigger updates across CRM, billing, and renewal systems automatically. The result: quicker service, fewer missed renewals, and happier customers who feel taken care of.

But great service isn’t only about speed. It’s about staying connected. Once those routine processes are automated, AI helps every conversation stay consistent, no matter where it happens.

How does AI keep communication consistent across channels?

Customers want the same experience no matter how they reach you: phone, chat, text, or email. AI makes that possible by connecting all those channels so the conversation feels continuous and personal.

For example, if someone texts about their policy and later calls, AI remembers the details and continues the conversation where it left off. 

No repeating information or waiting for a transfer.

Here’s what that looks like in practice:

• Unified history → every interaction is stored and shared across systems.

• Accurate answers → AI pulls real data from CRM and policy systems before replying.

• Automatic follow-ups → after each call or message, the right next step happens instantly, like sending reminders or creating tasks.

• 24/7 service → customers can get help anytime, without losing the personal touch.

With platforms like Strada, every interaction stays consistent and on-brand, no matter who reaches out or how they do it.

And here’s how you can start using AI right away.