Can AI drive more exciting changes in the insurance sector?
Artificial Intelligence (AI) technology is going to change almost everything about insurance as it stands today.
The typical consumer has acquired a couple of insurance policies through a broker or agency. They pay monthly or annual premiums to cover their assets in the event that something goes wrong. They only speak to the insurer when it’s annual renewal time or when they have to submit a claim.
That’s it. That’s the sum total of the ‘relationship’ between the consumer and the company that provides their insurance cover.
The future picture looks dramatically different.
AI-based technology is shifting the focus away from covering the cost to repair or replace a damaged or stolen asset.
The future picture has the insurer playing an active role in predicting and preventing incidents from happening altogether.
This is made possible by combining massive amounts of data with machine learning and smart decisioning engines.
As a digital communication specialist, we have to ask:
“Will this impact the way an insurer communicates with its customers?”
Our expert says:
The shift described above will be accompanied by a radical change in the type, frequency and purpose of communication between an insurer and its customers.
Imagine millions of IoT devices tracking customer movements and passing this data to a system that uses it to predict risk. At a certain level of risk, a flag will be raised and a communication dispatched to warn a customer to slow down, or secure their belongings or get their blood pressure checked.
To support this dynamic re-evaluation of risk, there will need to be a continuous cycle of micro-communications around changing risk scores, updating policies, confirming payments and verifying cover.
Claims assessments and processing will be super-efficient, as the system will know what happened even before the customer files a report.
What’s the bottom line?
More frequent communication will result in better engagement with customers, helping insurers provide better services and more relevant and timely offers.
VP of Customer Engagement, The Americas