In today’s day and age, customers have begun to expect seamless interaction and personalized services from their insurance providers across channels that they wish to utilize. No matter the brand, customer satisfaction has proven to king and insurers have started upping the ante when it comes to providing first class services.
The buck doesn’t stop with personalization. With vast reserves of data, a sea of customer queries and thousands of claims to process regularly, the insurance industry faces challenges associated with reaching out to customers in a timely manner with the right mix of products, that are ideally tailored to their needs and facilitating faster claims settlement.
In a situation such as this, Artificial Intelligence (AI) is proving to be a game changer with its ability to support the insurance industry, by guaranteeing custom-fit services and improved customer satisfaction.
Development of Insurance Product According to Customers’ Needs
At the heart of artificial intelligence lies data. With good quality data and Artificial Intelligence at their ready disposal, insurers can better forecast customers’ needs and gain valuable insight into their habits as well as preferences. This would lead to them recommending an optimum mix of insurance products to customers, at the most appropriate time and across the right channels.
For instance, various insurtechs are developing algorithms to assess risk without the need to conduct lengthy medical examinations. Using public records data and other risk attributes provide consumers with a quicker, better experience and allow insurers to set appropriate life insurance premiums.
Enhanced One-on-one Interaction with Insurers
Artificial Intelligence would allow consumers to derive the best value from their communication with the insurer’s interface. AI-powered service executives and advisor bots, for instance, can be leveraged to offer consistent counselling, recommendation and post-sales services to customers.
Features - such as Natural Language Processing (NLP) - are expected to usher in a new era of interaction with customers, wherein automated customer relationship management can take care of service glitches without the need for a live representative.
In the insurance sector, chatbots have been used for some time now. However, with NLP registering advancements by the day, this technology can be leveraged further to facilitate more complex communications with customers and make interaction as meaningful as (or maybe more than) the one with its human counterpart.
Better Clarity of Information and Reduced Knowledge Bias
Customers often draw on the knowledge of agents for guidance on the right insurance policy for themselves, with the possibility of bias (stemming from the agent’s knowledge of the product, his/her preferences, etc.) permeating this process.
In contrast, AI-powered virtual service executives and advisor bots can be used to offer consistency with rules based notifications and announcements to customers lessening bias.
Faster Settlement of Claims
Filing a claim has always been time-consuming, considering it usually requires human intervention. Should there be a dearth of resources, the outcome for insurers could be further delays in the claims process, and resulting impacts to customers already demanding faster processing and simpler processes.
With touchless claims (a disruptive technology that doesn’t warrant human interference), a new claim can be filed instantly and respective damages validated. Customers benefit from the ability to file claims, without having to go through the proverbial ‘red tape’.
Moreover, insurers can leverage AI algorithms to better sift through an array of claims, dissect aberrations in data patterns and single out spurious claims. This could allow
In conclusion, Artificial Intelligence, if leveraged to the fullest, can spearhead efforts towards increasing customer satisfaction by helping insurers understand the needs of their customers better and deliver products that fit their clientele’s risk profile and preferences. In addition, a range of customer queries (both pre and post sales) can be addressed, customer claims can be better resolved, and the right mix of insurance products can be offered to provide appropriate coverage.
This article has been contributed by Shivakumar Shankar, Managing Director- India, LexisNexis Risk Solutions. LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe.