How AI and Big Data is revolutionising the insurance industry
It is not surprising to note that insurance industry is among the first to adopt modern technologies like AI, IoT, Big Data and Analytics given their reliance on consumer data. However, such technological terms are not generally associated with this industry. But if you start to think whether insurance industry requires these technologies - your answer quite naturally would be yes as the basic principle on which insurance industry works is risk management.
Hence, such an industry depends largely on prediction of risk for a person, company or an organization. This is here data plays crucial role as more the information - better will be the prediction. More so, when predictions are accurate it helps such insurers save money and earn extra revenue. Adoption of AI and Big Data technologies gives the company an edge over the competition.
Telematics and wearable sensors collect information about customers by installing a device, say in their car, which shows how the person accelerates the car or applies brakes, whether she is likely to cross speed limit and so on. All this information allows the company to build a detailed profile of the customer and assess the risk involved. In this way a safe driver may not be charged more premium than an unsafe one.
Presently companies study their client's information received at their end and not on real time basis. A real time information gives an edge to the insurer by saving money that would have otherwise been spent on expensive assessments and audits.
Chatbots help an insurance company to gather initial data without having to engage employees. Hence the efforts of employees can be channeled elsewhere. Such chatbots thus help in decreasing operational cost and ultimately reduction in the price of premiums. Individualized experience leads to improvised CX and customer loyalty with higher ROI and growth in revenue.
The times are gone when customers were offered a limited set of options to choose for insurance packages. Hyper-personalization and improvised CX is the buzz word in today's business and insurance industry is not aloof of the fact. Italian insurance company Allianz1 allows consumers to design and tailor policies from modules offered by the company.
Introduction of AI and Big Data not only helps an insurance company to provide tailor-made solutions and reduce premium cost but also helps in faster and successful settlement of claim. Lemonade's Artificial Intelligence robot 'Jim' hit the news headlines when it settled a claim in just three seconds or less which takes for the best companies at least a week to process.
Espire being a digital and CX transformation expert, is enabling Insurance companies worldwide to revamp their digital experience management and CX strategy, resulting in up to 20-30% increase in revenue through new digital channels. Having already built customized solutions for Insurers worldwide for many years, we've successfully built a vast repository of ready-to-deploy and easily integrable technology frameworks. We leverage this to seamlessly implement and integrate our tailored solutions in client's existing IT ecosystem, while helping them achieve operational efficiency and cost reduction of up to 40-50%.