The photograph of the insurance sector 2023 taken by Insuretech Insights shows a sector exposed to challenges from many fronts: inflation, economic instability, cybercrime, environmental crisis, political conflicts…
As always, the response of companies wishing to adapt to change and compete on the market is the ability to innovate.
In the insurance sector, in particular, risk management through automation technologies and data aggregation will be essential to predict market behavior and the actions to be taken for better organizational agility and resilience, to promote cost reduction, on one hand , and anticipate needs and risk profiles on the other.
AI guides insurance digital transformation
Among the main trends driving the transformation of the insurance sector, the use of AI as an efficiency tool stands out, together with the focus on the differentiating value of the customer experience and the evolution of digital channels to attract the millennial customer segment.
According to the McKinsey report “The impact of AI in the future of insurance”, the insurance market is experiencing a transition process from a model of
“purchase and annual renewal” to a “Usage-based Insurance – UBI”, where
the offers of insurance products constantly adapt to the behavioral patterns of the individual.
Insurance products are disaggregated into sub-categories to meet the needs of micro-coverage insurance (for example: telephone battery insurance, flight delay insurance, coverage for appliances in the home) that consumers can customize according to their needs.
This model is further favored by the possibility of equipping IOT devices with intelligence, which favor the collection of data by insurance carriers.
The IOT sensors of the devices installed inside the vehicles or in the houses, favor the collection of functional data for the verification procedures in claims opening process.
Information collected from devices provided by major companies,
are aggregated into a variety of data stores and streams.
These sources of information allow insurers to track the profile of
risk and specific coverage needs of the buyer, offering tailor-made policies and rates.
Finally, the artificial intelligence of generative models can be used in the insurance sector to facilitate activities such as the extraction of information from long and complex documents, or as a tool for writing code for statistical models.
Conversational AI for insurance transformation
On the customer experience side, chatbots and virtual assistants facilitate data collection, exchange and access to information in natural language.
Chatbots can be integrated into a broader omni-channel strategy, to provide information and assistance 24/7, collect data, support the customer journey, as well as, people’s work.
Virtual assistants facilitate the activity of agencies and individual agents, as a tool for accessing customer information, but also as a lead generation channel, allowing them to expand their customer base.
The virtual assistants integrated in the digital claim transformation process, for example, guide and simplify the process of opening claims in self-care, facilitating the acquisition of data through interaction with telematic apps for monitoring driving style, as well as, with the applications for the acquisition of the CAI paper form and acquiring the photographic documentation of the damaged vehicle.
By interacting via the chatbot, it is also possible to schedule an appointment at affiliated car services and select the reimbursement methods, receiving a link for a prompt payment via digital payment or selecting the direct repair intervention.
Focus on customer experience: towards hyper-personalization
Customer Centricity is the differentiating factor in the insurance sector: artificial intelligence supports the customer care service and provides functional data for personalizing offers.
Hyper-personalization is about the ability to enable personalized and contextualized interactions in every process: sales, marketing, subscription, service and complaints.
According to Ernst & Young, the most forward-thinking insurance companies are already adopting this approach. They are exploring new partnerships and business models to create integrated and value-added experiences to respond in a personalized way to the insurance needs of their customers.
To do this, they are investing in new data sources, analytics platforms and artificial intelligence (AI)-based decision engines that can match insurance supply and demand and engage customers with targeted offers.
Among Athics’ solutions, PortrAIt is the psychometric profiling technology capable of detecting the main traits of the user’s personality during the conversational exchange.
Among the traits that can be identified, for example, the “predisposition to pay one’s debts” or “the propensity to cover oneself from risks”, are particularly functional in the insurance field.
attract millennials digital transformation
Millennials value self-service shopping where the user experience is paramount. To attract young customers, offers must be affordable and the service available where and when they want it.
These trends are clearly also valid in the insurance sector: the compound annual growth rate of the self-service insurance market is projected to increase by almost 21% between now and 2029.
The digital transformation process must therefore look to an omni-channel strategy, which facilitates taking charge of requests in real time and allows starting interactive conversations on every device in use, such as, for example, instant messaging applications or social media.
To meet these needs, conversational AI makes it possible to implement chatbots as the only communication interface, through which to convey conversational exchanges and messages on all the digital touchpoints used.
Chatbots created with Crafter.ai, for example, can be integrated into web pages, mobile applications, social and eCommerce platforms, management systems and third-party applications, via restful APIs.
Within the analytics of the platform it is also possible to filter the conversation data, by the preferred channel used by customers.
Conclusions
As highlighted in the Insuretech Insights report: the goal is not to use AI to replace people, but to use artificial intelligence as a “co-pilot” technology to improve the efficiency of people and organizations.
Source:
https://www.insurtechinsights.com/12-insurtech-trends-leading-market-disruption-in-2023/
https://www.ey.com/en_it/insurance/how-hyper-personalization-can-drive-customer-growth-post-pandemic
