We had earlier explored the impact of Artificial Intelligence (AI) on the banking sector and how customer engagement was one of the areas where AI was going to have a lasting impact. This article is aimed at ascertaining how AI can impact another major sector of the Financial Services industry – Insurance.
The insurance sector is no novice to advanced technologies. In fact, these technologies are already taking major strides in areas such as underwriting, distribution, pricing, and claims. The addition of AI is only going to elevate the already existing technology arsenal in insurance.
Let’s see how AI will transform the insurance sector:
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Optimize the Agent Experience
Insurance agents should be able to optimize their tasks well using AI-powered digital devices. AI can further help them in easily managing the portfolios of all clients across various segments such as life, health, auto, home, etc. They can use AI-enabled bots to search for potential client deals as well as tailor customer interactions in real-time for each individual user. These interactions can be tweaked to meet the exact needs of their customers.
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Managing Claims
An insurance company’s efficiency is judged by how fast it can settle claims. Settling a typical insurance claim can take up to 15 to 30 days of time. This varies from customer to customer. Using AI, insurance companies can accelerate this whole process and reduce the time to less than a day or even hours. Lemonade insurance company’s AI claims bot, Jim, set a world record when it settled a customer’s insurance claim in just 3 seconds.
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Fraud Prevention
AI can assist insurance providers in accurately detecting fraud by analyzing the behavior and activities of policyholders at scale. It has the capability to monitor unlimited information and provide actionable insights for companies to mitigate fraud.
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Distribution and Pricing
Artificial Intelligence can make the whole process of purchasing insurance plans easy and hassle-free. It can help in drastically reducing the cycle time involved in completing the purchase of an insurance plan. By assessing user behavior, advanced AI algorithms can create customer risk profiles that can be used to enable instant quotes for users.
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Sales and Customer Experience
When it comes to sales, AI can increase digital conversions by intimating insurance marketers to target customers whose propensity to buy a policy is high. Using intelligent algorithms, insurance marketers can drive personalization at a highly customized level that enhances the customer experience for users.
Also Read: How AI Will Transform Banking
How Lemnisk’s AI-driven CDP Can Help Insurance Marketers
Lemnisk’s AI-driven Customer Data Platform (CDP) is a SaaS product designed to help insurance marketers in managing customer data and deriving actionable that can assist in driving personalized offers on a per individual basis.
This is done by first bringing in data from various sources in one central location. The data is then mapped to each user which inturn enables insurance marketers to derive meaningful insights. These insights further propel the creation of personalized campaigns for every individual user. Powered by Ramanujan AI, Lemnisk CDP is built to deliver millions of hyper-personalized campaigns at scale. Every insurance customer gets their own unique and contextually-relevant offer which is bound to attract engagement and eventually conversions.
Here are a few AI-powered CDP use cases that insurance marketers can leverage:
a. Quote-Level Personalization
Insurance marketers can capture premium quote submissions from the CDP to send out hyper-personalized campaigns across multiple channels.
b. Policy Cross-sell Upsell
Achieve increased cross-sells and up-sells by discerning customer-intent levels and buying propensity using AI.
c. Cross-Device Personalization
Lemnisk’s AI-based CDP enables cross-device personalization by sending personalized messages to users on their preferred devices in real-time.
Also Read: 7 CDP Use Cases for Financial Services Marketers
Conclusion
Research from Genpact indicates that 87% of insurance companies are already investing over $5 million in AI. This number is only going to increase in the coming years as more insurance marketers are made aware of the immense benefits that AI can bring to their business. As the importance of data-driven marketing rises, insurance providers should look to invest in AI-powered Customer Data Platforms that can help in augmenting customer data management, digital engagement, and the overall revenue for their business.
By Bijoy K.B | Senior Associate Marketing at Lemnisk
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