The insurance industry is undergoing a major transformation. While new entrants have to offer a maximum of digital services from the start, the historical players have to implement their digital transition. Their objective? To have a better knowledge of their customers and to simplify exchanges at any time, in any place and on any channel. But how are the insurance industry players transforming themselves? And how are they evolving customer knowledge and customer relations?
Intelligent chatbots to improve customer service
For several years now, more and more insurance and banking companies have been using conversational bots, also called “intelligent chatbots”. It must be said that this technology offers a significant added value to their business, since it influences not only the way insurers respond to their customers’ requests, but also the way customers communicate with their insurer. Thus, conversational robots are considered by many as a real lever for digital transformation. Simple and efficient, they automate exchanges and offer invaluable time savings, both for the insurer and the customer.
Human interaction, however, remains a priority. Freed from repetitive and time-consuming tasks, human resources gain precious time that allows them to offer a more personalized and complete service. Moreover, this constant search for a balance between artificial intelligence and human empathy is one of the greatest challenges of the digital transition in the insurance sector.
Machine Learning to control risks
The concept of Machine Learning makes it easier to analyze trends and thus better control risks. A large amount of data is analyzed in order to predict trends, new profiles and risks. It is therefore an excellent way to identify areas of effort and to create new insurance products in line with customers’ expectations and needs.
Among other things, the concept of Machine Learning allows:
- Analyze data using algorithms,
- index data from various sources,
- to define new risks,
- to create new insurance products,
- etc.
In a few years, Machine Learning should allow insurance companies to lower the threshold of risk coverage. Thus, more and more claims can be insured, thanks to a more precise and refined control of risks, even those whose history is still limited.
Artificial intelligence to personalize contracts
In Japan, the insurer Fukoku Mutual Life adopted a few years ago an artificial intelligence capable of analyzing all the data collected about each client. The analysis and interpretation of this data allows the insurer to propose a perfectly tailored insurance contract, corresponding perfectly to the needs of the customer. At the same time, the artificial intelligence itself calculates the amount of the insurance premiums according to the risk profile. The implementation of this technology could literally revolutionize the banking and insurance industry thanks to a significant gain in productivity, important savings on the premium calculation process and a significant reduction in the risk of error and fraud.
Artificial Intelligence for Accelerated Underwriting
In the insurance industry, lengthy forms are becoming an increasing problem at underwriting time. In an increasingly fast-paced and connected world, insurers are looking for solutions that are fast, simple and personalized. To speed up the underwriting phase, the insurer Aviva has implemented an artificial intelligence concept that allows future policyholders to avoid having to fill out a long form. Indeed, it is the artificial intelligence that takes care of writing the insurance policy on the basis of the collected data. Directly linked to the insurer’s application, it allows to fluidify the data flow and to improve the underwriting process. Customer data is centralized to limit the collection process via forms.
The digital transformation does not spare the new players, just like the historical insurers. Customer relations in the banking and insurance sectors are increasingly based on digital technology and artificial intelligence to meet the new expectations of policyholders.
