The COVID-19 pandemic has prompted several structural changes in various industrial sectors, and the global insurance industry is no exception. As pandemic-related restrictions fuel higher demands for digital transactions, insurance companies must find advanced insurance analytics solutions.
Addressing Key Threats in the Global Insurance Industry
Advanced, AI-powered insurance analytics tools and solutions can help small-scale insurance carriers address key industrial challenges such as:
Perform Real-Time Portfolio Management
Constant fluctuations across industries and markets are forcing insurers to closely monitor all changes in their portfolios. Unfortunately, most information on the Internet is unstructured. Human analysts can take days to detect and analyze this unstructured data and normalize the text.
On the other hand, AI and NLP (Natural Language Processing) tools can search through specific documents, classify significant data points, and convert them into ‘usable’ insights. Interactive, user-friendly, and AI-powered dashboards can help insurance companies analyze key market trends in real life.
By using these AI-powered analytics tools, insurance companies can mine data of all kinds in real-time. Insurance companies can collect and process data from corporate filings, news reports, brokerage reports, social media sources, etc. Constant inflow and processing of real-time data enable insurance companies to periodically refine their analytics strategies.
As markets become more volatile and customer demands more complex, AI-powered tools can be of immense help to insurance agencies. Insurance companies can leverage these tools to manage the variety, volume, and velocity of critical market data in real-time.
Address High Demands for Specific Insurance Products
Since the events of 2020, demand for certain products in the insurance industry has increased rapidly. For example, the demand for data breach coverage as a result of remote work options for employees has increased significantly. The cyber insurance market was valued at around $8 billion in 2020.
By 2025, this market is expected to be valued at over $20 billion. Using AI-powered insurance analytics solutions, companies can assess how COVID-19-related factors impact their current customer-retention models. Human agents can use the insights obtained from these tools to identify high CLTV (Customer Lifetime Value) customers.
Insurance companies can help such high-value customers by providing them with insurance concessions (e.g., late fee removal, adjusted renewal premiums, etc.). Insurance agents can also use AI-powered data analytics tools to track consumer demands, complaints, and pain points.
Insurance agencies can assess these insights to predict customer demands and create demand-oriented insurance products and services. These efforts ultimately drive longer-term customer relationships. In the post-pandemic world, the insurance companies that offer these additional perks will be favored by customers.
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Equip Human Agents with Better Capabilities
The lives of insurance agents were already pretty difficult – the pandemic has made it worse. Working from home is difficult for insurance agents who are used to face-to-face sales and customer service. High-quality analytics tools can help companies prepare their agents with remote competencies.
Here are the ways in which comprehensive, AI-powered insurance analytics tools help human agents:
- Promote Faster Forms Submissions: Natural Language Processing (NLP) solutions can be used to review insurance application forms or existing policy contracts. These NLP engines can also track policy and coverage documents to sensibly determine potential coverage, inclusions, or exclusions. Overall, when human agents have access to AI assistants, their on-field performances improve drastically.
- Optimize Digital Interactions with Policyholders: AI-powered insurance analytics tools can also track and assess the digital behaviors of policyholders on company websites. By optimizing these data-backed insights, insurance companies can improve their customers’ website experiences. As website traffic increases, the workload of human agents decreases.
- Optimized Customer Journeys: AI tools provide logical insights across all end-to-end insurance processes. Human agents can use these insights to lower turnaround times and eliminate the need for constant physical interactions. Insurance companies can automate key parts of the customer journey process.
How Can Insurance Companies Implement AI-Powered Data Analytics Solutions?
As explained above, AI-powered data analytics can give insurance companies significant competitive edges. But, integrating these new tools to mitigate and manage post-COVID-19 challenges is not easy. Rushing AI implementation would not be of any benefit to insurance companies.
Instead, insurance companies should create clear strategies to implement AI-powered insurance analytics tools by identifying areas that need urgent improvement. One practical solution is partnering with AI consultants.
Top AI consultants can help insurance companies discover which AI-powered insurance analytics solutions provide the most practical benefits. It is a risk-free strategy as AI consultants can help data-rich insurance firms leverage their data in the best way possible.
Third-party or in-house data analysts, data scientists, engineers, and AI consultants can help insurance companies implement the right AI-powered insurance analytics tools. Once these tools are introduced, they will improve automatically with time.