Digital is the key player in this time of the Covid-19 pandemic. Insurance companies are embracing digital channels now more than ever to reach out and connect with current and prospective customers. Covid-19 has changed the public’s outlook on insurance. Its value is perceived to be more critical as folks are considering the consequences of not being covered. Because of this, it’s essential now more than ever to provide consumers the ability to research products online without the assistance of agents, and at the convenience of their own home. Insurance companies must provide the tools and means to analyze various insurance products, provide price transparency, and a clean digital environment that is easy to navigate and execute.
In my earlier blog, “Data-Driven Insurance: The New Normal in the Post-Pandemic World,” I concluded that in the future, the insurance industry would be data-driven. Not only data-driven, but we’ll see the use of emerging technologies like Artificial Intelligence, Image Recognition, and Natural Language Processing BOTs will be the buzz words in the corridors of the Insurance industry.
This is the age of data. This pandemic has forced us to find new ways to get our work done without putting ourselves in danger. Consumer buying behaviours have changed in order to adjust to this new normal in the post-pandemic world. Before we talk about the changes in the business to navigate in the next two years, we should have a glimpse of the insurance business: What, How, and Why of the insurance business.
In our previous blog article, “Using AI for Increasing Agent Productivity,” we discussed how many insurance companies can only analyze agent productivity based on the premiums written and the loss ratio of their network of independent agencies. In part 2 of our series of articles on “The Top 3 Emerging Trends for Agent/Advisor Analytics Using AI”, we will focus on the benefits of understanding agency sentiment for insurance companies that utilize a network of independent agencies.
Currently, many insurance carriers can only analyze agent productivity based on the premiums written and the loss ratio of their network of independent agencies. Looking only at past results doesn’t necessarily provide an accurate view of how an insurance carrier can increase agent productivity going forward. By using AI for increasing agency productivity, insurers can now predict the best course of action as opposed to waiting to review past results.
Chess and similar games have always been used to measure the “intelligence” of machines. Chess grandmasters have always seen an able sparring partner in a good chess engine running on a capable computer. The positional evaluation, which comes by intuition and is honed and sharpened by unforgiving hours of grueling practice, can be expressed as a set of mathematical models that fast computers can use to create gameplay.
Sentiment reveals a lot about what customers think about an insurance brand, including how well customer representatives are resolving issues and how happy customers are with the underwriting process. This is where the sentiment analysis of structured and unstructured data can help insurers understand how their customers are feeling.
Data Science Willy, as mentioned in a previous blog, is the Data Science cousin of William Shakespeare, and he loves to use and abuse terms and concepts from the literature of his great cousin to drive home points related to Data Science. More often than naught, he is annoying in being reverential. For instance, Data science Willy would be at absolute loggerheads with literature’s The Great William Shakespeare over the question “What’s in a name?”, especially if we look at “What’s in an algorithm?” or “What’s in an algorithm’s name?”. What’s in a name? Literature Will quipped this very question via Juliet. Juliet, we know, is in love and is finding philosophical means to ignore the raging conflict of being in love with a member of a family with whom her family has been in blood and animosity drenched feud.
In order for regional insurance carriers to continue to grow, the acquisition of new customers and retaining existing customers is imperative. Because of this, identifying cross-sell and upsell opportunities has never been more critical. One of the significant challenges carriers face when growing their company is analyzing and managing the capabilities of their agent distribution channel.
I recently attended my first InsurTech Connect conference in Las Vegas a few weeks ago. Aureus has been attending and exhibiting at this conference, so I thought I knew what to expect. What surprised me the most about ITC 2019 was the sheer volume of people and the efficiency with which it was handled. I was impressed with how well organized it was. ITC's mobile app was a great way to encourage networking. The app enabled me to speak with over 150 attendees from insurance companies, agencies, brokers, and other technology providers. From these conversations, there were three topics that seemed to be on everyone’s mind this year.
The use of social media is growing at a steady rate, and with that, the adoption of predictive analytics is on the rise as well.