Automation in the insurance market based on modern technologies

How the introduction of modern technologies is reflected in the insurance market: insurance companies are already using AI capabilities and big data analytics. Obviously, the use of modern technologies and the automation of the insurance market will grow. We will also build forecasts and outline the vectors for the further development of the insurance market – what the future holds for insurers and customers.

AI, Big Data and Analytics

Now almost everywhere everything is based on the analysis of big data, and the insurance market is no exception. Data is collected and consolidated to offer more customized solutions for customers. The use of big data in sales is no longer a new phenomenon. Any system that has access to big data uses it to predict demand and when new products are launched on the market. Retail, for example, has ready-made solutions for analyzing and predicting demand.

There are no such established examples on the insurance market, but such a product will definitely appear. However, until the insurance market receives a more conscious level of product consumption by the policyholder, the use of big data remains limited. We still see without big data what will affect the demand for a particular product. For example, with the same mortgage or OSAGO. There are obvious triggers that are regulated at the level of the legislative framework, they affect the demand and consumption of insurance products. Obviously, after the spring floods and the discussion of the adoption of the law on compulsory property insurance, interest will grow, as well as the future demand for products for property insurance of individuals in certain regions.

In addition, insurance companies build forecasts for customer unprofitability on predictive analytics and cluster them: in order to understand clearly whether it will be profitable to work with this client. Some companies build analytics more deeply, some are limited by obvious factors. For example, when registering CASCO and OSAGO, a client over 32 years old with a child and wife looks more interesting for an insurance company than a 25-year-old lonely young man. But again, this is analytics at the household level, when client clustering occurs at the level of basic parameters. However, in the future, we will come to the fact that analytics are built more deeply and fully use big data.

The need for this will come when insurance products become mandatory for a comfortable existence; this will happen when, in general, the level of awareness and comfort of life increases. That is, in fact, generation Z has already begun to drive the market and buy products that were not particularly popular a few years ago insuring their property and health. The next generation, as they obtain the benefits of civilization, will also switch to additional insurance products in addition to basic ones.

So far, AI in the insurance market is used in customized solutions to optimize the processes of administration and work with clients: in decoding calls to CRM, for calls to clients. For example, we use an AI-based smart bot that calls partners on the platform and tells how to use it as efficiently as possible. Naturally, the marketing department uses AI as much as possible: these are all questions about creating content and analyzing the effectiveness of marketing campaigns.

In the future, AI will be used to build the sales process, to build the marketing system and for the same data analysis and demand prediction.

Automation of insurance processes

In the insurance market, speed today is a basic criterion. 70% of sales depend on how quickly you reacted and offered your solution to the client. Objectively, there are few exclusive products on the insurance market, and if they are, then it is much easier to sell them. But most of the time, the struggle for the client takes place in the context of price and speed, so speed is a super important indicator.

It is important to rely on work in CRM: maintaining a client in CRM, tracking his status is easier at times, even in a small company. CRM is needed at least for responsiveness. For example, if a client runs out of insurance after 40 days and you are the first to call today, you increase immediately your chances of selling by 10-20%. In addition, if you also offered the best price, made a quick calculation, then the client will definitely pay you. And such a speed in manual mode without an aggregator, without CRM, simply cannot be achieved.

Another important story is the cultivation of any platform into a full-fledged ecosystem, where in one window mode you can close several customer needs at once: make a mortgage calculation, take out mortgage insurance, insurance of cars, and businesses. We had experience in integrating an investment platform into an insurance aggregator service, but so far, it is difficult for a mass consumer to make investments. The product is even less massive than insurance. However, it’s only a matter of time – this kind of integration has potential.

In general, aggregators and all kinds of marketplaces are the future of the insurance market, since they allow you to buy quickly and profitably in one place everything that is needed. An infinite number of services for the client can be integrated into them, on their basis agents can build a full-fledged business and sell various additional services to their clients.

Naturally, the aggregators themselves become the same good source for big data research. And of course, inside such a large ecosystem, you cannot do without AI. Its main task here is to solve routine issues: to call partners when there is an interesting product and special conditions; remind customers that they are running out of insurance; make mailings; analyze demand.

Advantages of automation for insurance companies and customers

Responsiveness and favorable price for customers.
Reduce costs and improve efficiency.
Improve service quality and reduce request processing time
Personalization of insurance products and services (now few people have implemented this, but the level of personalization will grow). Personalizing offers based on customer data analysis will increase customer satisfaction and loyalty.

The future of automation in insurance: predictions and perspectives

Vectors for the further development of the insurance market are already outlined as follows:

An increase in the number of aggregators – they win in price, in speed, in the amount of data that they can process, collect, and so on. After all, customers choose insurance products, primarily for price and speed.
Improving the quality of sales through the use of AI – we are waiting for call centers to switch completely to automated sales through AI bots, while this is implemented, but in a very truncated format (in most cases, in the format of technical support). Most often, these robots still annoy customers more than they help them (everyone is eager to talk to a real support operator), but their quality is getting better every year. AI-based virtual assistants will provide personalized recommendations for choosing insurance products.
Integration with the Internet of Things (IoT) – IoT devices (smart sensors and trackers) will help collect real-time data to monitor insured property and health. This will allow insurance companies to offer more flexible and accurate policy terms based on real customer behavior and condition.
Digitalization of customer experience – the development and implementation of mobile applications and online platforms for interacting with customers will improve the availability and convenience of insurance services.
Cloud technology and cybersecurity – Moving to cloud solutions will allow insurance companies to scale their IT resources flexibly reducing infrastructure costs. At the same time, an increased focus on cybersecurity will become necessary to protect customer data and prevent cyberattacks.