⭐ This article was featured in NU Property Casualty 360.
Artificial intelligence (AI), where machines can effectively mimic the cognitive function of the human mind, is the driving force behind machine and deep-learning technology. Simply put, AI is a set of digital tools that make machines smarter, allowing them to perform certain automated activities that would normally require human intelligence.
The insurance sector is a highly competitive industry. More than ever before, a greater number of carriers and wholesalers are looking to write new business and retain customers by rolling out enhanced products and services to better meet the evolving needs of the market and deliver more value. But in an overly saturated field of competition, how is it possible for one company to gain an advantage over another?
AI and digital technologies present a strong case for helping brokers, carriers and wholesalers gain a competitive advantage. Key capabilities include:
- Enhancing Consumer Centricity. AI is being used in tandem with humans to enhance the customer experience by effectively combining digital automation with human intervention. For example, a wholesale broker can first receive a quote and underwriting information digitally, and then personally follow up regarding specific coverage and pricing options with the retail producer. This allows the broker to present a proposal in an expedited, yet personal, manner.
- Deep Learning. Utilizing customer data provided by AI and applying it to a machine learning model allows an insurer to evaluate a customer’s risk profile. As a result, insurance companies can get a better understanding of their customers and direct new products and services based on a policyholder’s individual needs. For instance, AI can identify a business client that has a professional or cybersecurity risk exposure, providing an opportunity to market specific products where there is an immediate need.
- Identify Target Markets. AI’s ability to capture and effectively analyze consumer data allows carriers and wholesalers to offer specific product and service recommendations to targeted markets, based on digital data that includes location, interests and online browsing history. By default, it can also present additional buying options and recommendations.
- Intelligent Customer Service. To be competitive, companies need to offer the best, most seamless customer experience possible. Today, AI can be a key resource in boosting the insurance buying experience. For example, powered by AI, chatbots can provide instant responses to queries and, when needed, route the inquiry to another specific person/department. This type of intelligent call routing and conversational AI technology helps insurance companies respond faster, increasing satisfaction and retention.
It is estimated that by 2025, AI will have automated 25% of the insurance industry, with 50%-60% of all manual tasks being automated. The AI solutions mentioned in this article, along with many others, are making it easier for insurance professionals to focus more of their time on market opportunities that can help them gain a competitive advantage, while making the customer buying experience better.
As the insurance industry model changes, insurers and brokerage firms are looking to capitalize on insurtech opportunities to improve operations and to better serve the needs of today’s digitally immersed customers. At Direct Connection Advertising and Marketing, we understand the importance of leveraging insurtech capabilities. Whether you are launching a new product or implementing new service capabilities, our marketing experts can give your brand the competitive advantage it needs — at every stage of the buying cycle.
For additional information, contact Brad Nevins at email@example.com or 707.759.5391