Insurance
Personalized Insurance Recommendations via AI
The needs of customers in the insurance sector are changing. Gone are the days when customers would be satisfied with standard insurance products, today’s customers want personalized insurance products. And, since customer experience is of paramount importance for business success, personalizing insurance is key!
In a market where there are multiple options available to customers, you will find it hard to retain your customers if your company does not provide personalized insurance. Therefore, insurance companies need to provide products that are tailored to the unique needs of customers to remain competitive.
What is personalized insurance?
Personalized insurance refers to customized omnichannel experiences offered to customers throughout their life. The concept of personalized products is not new for the insurance sector because insurance companies have always recommended products/services based on the risk assessment of individual customers.
However, today, hyper-personalization is the need of the hour. Besides, the needs of customers are constantly changing. This makes it imperative for insurance companies to gather an insightful and more dynamic understanding of their customers.
Technologies like data analytics and artificial intelligence (AI) have completely revolutionized how the insurance sector functions. They have ushered in new levels of efficiency leading to enhanced customer experience.
Let’s dig deeper into the role of AI in insurance
Data shows that more than 90 per cent of insurance companies have either adopted AI or are in the process of leveraging AI tools. AI has made an emphatic impact in the insurance sector and has enhanced both operations and quality of service. AI-based tools are being leveraged for functions like claims management, fraud detection, predictive analytics, personalized policies and more. It has proved to be a game-changer in areas like boosting customer experience, reducing operational expenses, enhancing profitability, etc.
AI algorithms optimize insurance processes and enable insurers to unlock new value streams while redefining the role of insurance agents. AI technology helps insurers offer more responsive and customer-centric service models that have established new benchmarks in how insurance is delivered to customers. It has paved the way for offering insurance solutions that are tailored to the specific needs of the customer.
How does AI help to personalize insurance?
Machine Learning (ML) algorithms can extract relevant information from abstract data sources like social media, customer reviews, etc., providing a more nuanced understanding of risks. They leverage the strength of numbers by gathering vast volumes of data including personal information, lifestyle habits, risk factors, etc. from a myriad of sources
AI algorithms analyses this data to identify unique customer profiles and predict their specific requirements. These insights help insurers to offer customized policies to their customers. Also, these policies are created at a faster speed with minimal errors enhancing the customer experience.
AI tools have facilitated a transition from traditional policy models to continuous coverage cycles that adapt to the behavioral patterns of an individual. The AI recommendation system not only enhances customer satisfaction but also helps to optimize pricing strategies which makes insurance more affordable for high-risk individuals.
AI further boosts customer experience by providing personalized customer experience through chatbots. AI-based chatbots provide real-time assistance and policy recommendations to customers strengthening the bond between insurance companies and their customers.
Another revolutionary use case of AI in insurance is Usage Based Insurance (UBI) enabled with the help of telematics. Telematics collects data about the behavioral pattern of a customer and the AI recommendation system suggests insurance policies based on the usage. This can be best understood through the example of how insurers offer personalized automobile insurance coverage and pricing based on actual driver behavior. Telematics gathers data about a driver’s driving habits with the help of smart Internet of Things (IoT) sensors inside the vehicle. AI analyses real-time data and provides insights to insurers who can then offer policies based on actual driving behaviour. AI provides insights to both insurers and customers paving the way for a dynamic insurance process.
The AI revolution in the insurance sector is here to stay and we are likely to witness a more widespread deployment of AI in times to come. Data indicates that the market value of AI in the insurance sector is estimated to reach a whopping $35.77 billion by 2030. However, to harness the true power of AI in insurance, you need the best tools and effective implementation. Working with a reliable technology partner like Infosys can make the process seamless.
How can Infosys BPM help?
Infosys offers Insurance BPO Services customized to the specific needs of your business. We collaborate with insurers to accelerate their transformative journey while aligning their business processes. Our services not only help insurers to reduce their expenses but to also exceed market demands and enhance customer experience.
