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How can insurers use Artificial Intelligence in sales and distribution?


Neutrinos - June 10, 2020 - 0 comments

Investing in Artificial Intelligence [AI] adds significant value to the insurance industry. AI can be incorporated in myriad ways and insurers must work on building their Artificial Intelligence Quotient (AIQ). 

There are two visible global trends altering the way insurers approach sales. One is the shift in focus from product to customer and addressing their demands, the second being the sheer volume of data that is gathered. In an AI-powered path to purchase, there is better mapping and understanding of the customer behavior which changes the entire process, including sales.

Smarter automation with deployment of intelligent technologies in order to gain operational efficiency while ensuring customers enjoy better experience is the sole objective. 

AI in Sales, Marketing and Distribution 

Using AI Algorithms to create risk profiles, the entire TAT is redefined. The time taken from start to the actual insurance policy purchase is much faster.  Similarly, with telematics and in-home Internet of Things (IoT) fitted into devices helps alter the pricing algorithms, making it a win-win situation for both customer and insurer. With automated systems comes ease of authentication and verification which in turns eases the claims processing. 

Here are some of the ways in which AI is disrupting the insurance space:

  • Elevated and intelligent customer engagement
  • Smarter lead allocations and streamlined workflow management 
  • Better customer insights and segmentation with Machine Learning
  • Tailored services through customer personality analysis 
  • Real-time data tracking and reporting 
  • Target based marketing and policy promotion through automation
  • Faster cycles through intelligent self-service and automated answering 
  • Automated product recommendations 
  • Automated data extraction from the various documents submitted and compare the same with the policies 
  • Enabling technical and non technical insurers to run data analysis automatically, thereby allowing the managers and  decision makers to focus on other aspects of the business. 
  • The entire process of underwriting is completed within seconds thanks to the automated systems [using a combination of ML  & AI tools that are built within the technology stack].

Key benefits of AI

Faster, better lead generation: Data analytics and insights help agents reach out to potential customers and improve effectiveness of leads generated. 

Effective cross-selling and up-selling: All the data gathered about the customer opens up upselling and cross-selling avenus. 

Better customer experience: Insights and Bots help in providing faster resolutions and providing a better, more personalized experience. 

AI powered insurance solutions also gives the insurers the opportunity to save operational costs, which includes about 30% of their customer service costs. This is done by,

  • Offering seamless digital experiences to the customers 
  • Utilising virtual assistants and chatbots to ensure there is constant interaction between the customer and the company- be it to resolve queries, or provide insights/information. 
  • Automating systems and offering consistent service across digital/offline platforms/channels.  

Here is a break up of the use cases & benefits based on the various elements in Insurance,

1. Marketing & Sales Distribution

Use Cases

    • Automated data extraction from across documents and compare the same with policy options.
    • Generate better and appropriate product offerings
    • ML/AI insights for customer segmentation
    • Automated promotions to target audience Customer analysis- behaviour, lifestyle and personality
    • Interactive & intelligent customer engagement
    • Balanced workload and better lead allocation
    • Automated product recommendations & natural language answering
    • Enabling intelligent self service & research features for customers
    • Intelligent reporting.  

Benefits

    • Personalized & flexible pricing along with products & services
    • Faster understanding of product to market need
    • Adopt new marketing channels with customized campaigns 
    • Boost in lead generation
    • Improved opportunities for cross and upselling
    • Top notch service

2. Underwriting

Use Cases

    • Extracting insights from various data sources
    • Automated analysis of demand and new product generation process.
    • Enhanced pricing & policy rating, along with personalization
    • Natural language question answering for employees.

Benefits

    • Efficient underwriting processes
    • Improved insurance sale and customer retention 
    • Better risk evaluation reports

3. Servicing & policy Underwriting

Use Cases

    • Understanding of all emails & requests related to a policy
    • Automated call center and web support service
    • Virtual assistance to resolve queries from customers
    • Unstructured data to be processed

Benefits

    • Enhancing the efficiency of the administration processes
    • Improved analytics & insights

4. Claims Management

Use Cases

    • FNOL with real time query resolving service
    • Automated damage assessment and pre- assessment of claims
    • Automated fraud detection system during claims process with data analytics
    •  Augmentation of loss analysis 

Benefits

    • Streamlined claims processing- management and administration.
    • Improved fraud detection 

5. Recruiting/Talent

Use Cases

    • Skill mapping against the resumes received with the job description 
    • Analysis and prediction of candidate match through automated selection system
    • Using hireability metrics against and online assessment tools.

Benefits

    • Conversion rates to be optimized
    • Increased matching of profiles and offer acceptance 

At the end of the day, it all about how well the insurers make use of the available systems and technology. 

At Neutrinos’, with our insightful and incisive approach to developing affordable business solutions, we ensure that clients are able to leverage the disruptive edge of technology while at the same time keeping an eye on their ROI. Offering in-built capabilities for the adoption of emerging and futuristic technologies such as IoT, AI, BPM, etc. If you are looking for digital insurance sales distribution solutions, connect with us now!

 

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