Have you noticed the advancements of technology in the Insurance industry? Can you believe that it has been more than 20 years experiencing tremendous technological change!
Artificial Intelligence (AI) and its potential to enable machines to perform specific predictive tasks based on information we obtain from customers are at the forefront of this push, and the insurance industry is no different.
We can benefit similarly from the use of AI, but carriers must be prepared to invest in a system capable of collecting and organising information, labelling it and translating it into a predictive marketing tool.
In an article published by Insurance CIO Outlook, Joe Orr, Executive Vice President of Insurance at Clearlink, shared 3 ways AI and machine learning impact the future of insurance. Here’s how:
1. Using AI to transform unstructured data
Today, insurance companies can gather more data about policyholders than at any other moment in history. We understand more about insurance policyholders and candidates than ever before, ranging from wearable tech like Fitbits to integrated auto sensors and drones.
If you have the technical capacity to analyse the information you collect, you can understand more AI records information and outcomes to put it in an algorithm to provide you with significant facts that can inform the sales process, policy issues, prices, product development, claims, and more.
For example, motor insurance premiums are partly based on the credit score of a driver right now. Insurers collect data about the actual driving habits of a driver with the tools presently available.
Making an investment in AI will take a fair amount of intelligence and time to analyse the different driving habits to predict the risk. However, it will be worth the investment.
2. Removing friction in the sales pipeline
It is widely known that a lot of companies record phone conversations to collect information about that specific interaction. With the help of AI, the future can see us feeding this data into a network, which will then be able to assess and correlate the information based on the result you told the system you are looking for. Analysing this information will allow you to harvest the tactics to become the most effective seller.
For example, an AI algorithm could recognise the frequent use of the term “budget” by a customer as an indicator that they are price-sensitive, thereby helping an agent focus their strategy so that low-cost premiums are front and centre, improving effectiveness and conversion.
AI can also assist in providing insurers with an enhanced yet extremely predictable rate of continuing sales achievement through these benefits. As machine learning can pick up things people can’t, which opens possibilities for more common cross-selling.
3. Meeting evolving customer expectations
Most businesses have started to use AI chatbots to communicate with their customers. If the future of insurance is in a virtual hybrid model, AI can provide us with the tools we need to have a unified scheme and process for both virtual and non-virtual employees. This change will be significant for achievement rates, persistence and compliance.
Some might claim that AI removes the human element and disrupts the customer experience, but AI requires human intelligence assistance to function correctly.
Insurance is not regarded as the most agile sector, but with each interaction, we have an opportunity to create a smarter customer experience. One of the most significant assets anyone can obtain is customer data. It’s time to realise it’s potential, evaluate it and correlate it and prepare for the future of AI.
Businesses that wait might not be able to catch up, which may leave you in the past as a casualty of the evolving customer expectations and competitor capabilities.
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Contact Rebecca to find out more about how our smart software can help drive your business forward.
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