AI changes Insurance Industry: Move to Digital Transformation
By: Elah Mae Ariate
June 01, 2021
The insurance industry is making a move to digital transformation. The goal is to have the potential and make insurance more convenient, personalized, and even enjoyable.
In recent years, the insurance industry has seen a significant shift from traditional to automated customer service. More than 80% of CEOs said AI is already a part of their business models or will be soon. Customer thinks study found that spending on cognitive and AI systems will reach $77 billion by 2022.
This means that executives understand the importance of investing in cutting-edge technology. But the question is where and how they will use them, which will determine their effectiveness.
Here are the three key areas of the insurance process where AI can have the most impact.
AI from the beginning of the relationship
By incorporating AI from the beginning of the relationship, you can ensure that the customer’s first interaction with your company is both personalized and consistent.
AI-powered virtual assistance can enable real-time, seamless enrollment with no hold or wait times. This will give each customer confidence in their provider choice from the start. This will also help to foster the long-term loyalty that the company seeks.
Put consumers and their data first
Every day, insurance salespeople engage with customers’ personal information, just like they do in banking or collections. While this sensitive data exchange is necessary for the job. It helps consumers obtain the best deals for their specific circumstances.
Also, it can be a source of discomfort for callers who do not like sharing personal information with another person. The customer thinks survey found that 70% of consumers report being okay with bypassing a human agent when discussing personal finances.
As a result, businesses that use AI platforms have the chance to make customers feel more at ease throughout their transactions. Virtual assistants powered by AI are used to engage with users in the same way that humans do.
Customers will be able to have individualized yet risk-free purchases. Because they will never be humans. Conversational AI solutions, on the other hand, free up valuable agent time for discussions that require human empathy.
Furthermore, sophisticated security design concepts, such as encryption and redaction of sensitive data. These can focus on data protection, which is critical for consumer confidence.
Build trust through simplicity
Claims management can be one of the most stressful aspects of the insurance process. As both agents and customers are aware. When they need the claim in a time of crisis, such as a car accident or a house fire. Agents are on the front lines of the chaos.
If agents can help stressed-out customers navigate the claims process, those compassionate and efficient interactions will increase customer loyalty and trust.
With the help of AI-powered virtual assistants, agencies can streamline claims. It can eliminate hold times, repetition, and incorrect transfers that force customers to start over. As a result, agents have more time to interact with customers who require a human touch. As more insurance companies invest in AI, they must focus on the most impactful areas.
Every stage of the customer journey involves some combination of sensitive data and difficult life circumstances. AI has the potential to transform dated, inconvenient insurance processes into experiences. Customers will feel more confident, trusting, and at ease because of this.