People need to understand how AI can help insurance companies and customers and customer service staff.
Insurance is one of the most important industries, because insurance can protect businesses and individuals from financial difficulties after a crisis or unexpected event. However, IT is generally regarded as the least technologically innovative industry, with outdated processes, time-consuming and delayed procedures, antiquated IT systems and many customers dissatisfied with service.
With demographics changing and a rapidly growing population of tech-savvy millennials who prefer to conduct banking and finance-related transactions online, the banking and finance sector needs to meet their needs.
Millennials are more likely to shop for insurance online to save time and make it easier, according to the survey. The middle-aged and elderly prefer to buy insurance after discussing with insurance company staff. As a result, the insurance industry is steadily moving away from outdated technology and providing inconsistent and friction-ridden customer experiences.
So how can ARTIFICIAL intelligence and machine learning lead the digital transformation? In order to effectively understand how technology and AI are disrupting and revolutionizing the insurance industry, it is necessary to first understand how the insurance industry is leveraging AI technology.
How can the insurance industry take advantage of AI?
· Risk assessment: The core business of the insurance industry is risk and its effective measurement and assessment. Using AI and machine learning, insurers can use mountains of data to assess risks more accurately, learn new correlations and patterns, gain deeper insights, make better predictions, and plan and adjust premiums accordingly. For example, through AI and machine learning, insurance companies can adjust premiums accordingly if they find that particular insurers are at higher risk of fire accidents.
· Underwriting: In order for reinsurers and insurers to perform their tasks effectively and seamlessly, AI can gather data from different internal and external sources and provide deep and intelligent insights. By controlling and leveraging large amounts of data, insurance company executives can shift from a detection and remediation mindset to a prediction and prevention mindset, reducing guesswork in insurance matters to make accurate, data-driven decisions and gain a competitive advantage for insurance companies.
· Round-the-clock help for insurers: artificial intelligence systems in the form of conversational robots are able to handle a large number of inquiries and questions from potential customers. They efficiently process large numbers of queries, providing automated consulting and personalized advice to customers through multi-round, natural, and goal-oriented conversations. Thus, conversational bots enable insurance companies to largely automate the query management process. Human customer service can be freed from the tedious and monotonous work of handling routine queries and step in to customize, persuade, and convert customers as needed. This automated consultation saves time in providing insurance quotes to insurance customers, enabling them to quickly make data-driven insurance purchasing decisions.
· Use chatbots as real-time customer service assistants to increase human customer service conversion: Human customer service cannot effectively process large amounts of data on a daily basis and convert and upsell insurance products. Insurers could program and train chatbots with machine learning to act as real-time sales assistants for customer service. Chatbots collect, collate and analyze vast amounts of data from a variety of sources, enabling customer service staff to gain key insights when pitching to potential customers. These conversational bots provide timely information and high-quality insights to customer service staff, and recommend suitable products based on customers' personal profiles. In this way, the customer service staff can not only switch customers, but also upsell and cross-sell the right products and increase the customer's lifetime value.
· Entry Assistant: It is a long and tedious process from preparing and providing quotations to customers, letting them choose policies, preparing policy documents for them to pay and join policies. Known as the quote-to-cash (QTC) process, the cost of time and hassle for customer service staff leads to lower sales and insufficient additional revenue. Conversation robots that can be programmed and taught to act as onboarding assistants can automate important parts of the process, reducing the time and effort required and enabling salespeople to focus on converting new customers. These onboarding assistants can solve customers' questions, help them find a doctor or hospital, learn about coverage and other services.
· Claims management: Filing and receiving claims is often an exhausting and emotional task with a high cost of time and trouble as clients file claims following major events such as accidents or natural disasters or illness/death of family members. As well as providing personalized help to the underwriter, conversational bots automate a large number of problems in the claims process, which often involve duplication. Customer service staff can step in as needed and use the full transcript of the conversation to deal with more complex issues. With the help of chatbots and artificial intelligence, claims can be adjudicated faster and fraud detection rates can be improved.
· High quality and consistent customer experience: Dynamic and meaningful conversations conducted in natural language through conversational bots can reduce customer wait times and frustration, enabling insurers to provide a high quality, seamless and consistent customer experience. They enable customers to self-service, better understand insurance terminology, and simplify the claims process. For example, auto insurance customers submit claims through mobile applications, helping customers reduce time, expense, and hassle.
As noted above, the digital transformation and adoption of ARTIFICIAL intelligence in the insurance industry has been slow and steady. In some ways, insurance chatbots could be used for onboarding assistance and personalized sales assistance. Many insurance companies have adopted or are adopting AI technology. In the future, the insurance industry will benefit from the full implementation of AI.
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