3 Ways AI Can Boost Customer Retention
The insurance industry has steadily been digitizing in recent years. It's taking advantage of technological developments in automation, offering apps to clients and introducing such things as electronic proof of car insurance.
PwC's Annual Global CEO Survey in 2021 identified customer experience (CX) and core tech transformation as the top two opportunities for companies to set themselves apart, with CX significantly ahead. When customers are communicating with their insurance company, they are usually coping with an awful experience (a car accident, a medical issue, a house invasion, a roof leak or perhaps a full-on natural disaster). Hitting any snags when it comes to getting the service they require is a huge element in driving them to a competitor.
Artificial intelligence (AI) addresses both customer experience and tech transformation and has helped insurance companies enhance their services and remain competitive in a tough industry. AI enables many services and procedures to become automated, resulting in both cost and time savings. But AI deployment also benefits customer experience, in three specific areas.
Improvement of policies, products and processes
The retail sector has capitalized on custom products and experiences, and the concept that one or two sizes will fit everyone is fading quickly in other sectors, too. The insurance market is now also latching onto customization, as AI enables companies to leverage data to personalize a core product for a person customer.
A company's AI model may use a client's historical data to calculate having a high degree of probability that the particular product or policy would be the best fit. In the eye of the customer, they get an attractive product while not having to spend a lot of time on consultations using the broker. For that insurance company, the efficiency gains are impressive, and agents don't have to spend considerable time choosing the best product for that client.
Not only does AI enhance the speed of crafting policies for purchasers, we've got the technology can also speed up underwriting, as well as the claims process — two key touchpoints where turnaround time is important for CX. If your health insurance customer is filing claims for an expensive prescription, they will want a simple and easy resolution. Long waiting times may bring them to some competitor noted for quicker reimbursements. But AI may bring a competitive edge to an insurance company if customers know they can expect trouble-free claims processing.
Enabling rapid online assistance
The times of customers playing phone tag with agents to obtain the information they want are long gone. Insurance companies can leverage AI on their own platforms — both web and mobile — to permit customers to easily discover an answer to an issue. The ability to easier respond to inquiries from policyholders is particularly important following a major event, like a tornado or hurricane, if you find certain to be a high-volume of online interactions.
AI-powered chatbots have become the first touchpoint for purchasers in lots of sectors. When done correctly, they can give a major boost for an insurance company's customer experience. Organizations may also save money by automating easy and routine online customer interactions, resulting in another win-win situation where customers can easily arrive at the information they need.
Using AI to test AI models
Once an insurance provider has an AI model in position to help using the crafting of policies and settling of claims — and the organization begins using it as an integral a part of its daily routine — it is essential that the AI model suitably addresses four risk factors: accuracy, stability, flexibility and ethics. AI can be used to test these models against those factors.
Any AI model an insurance company employs must have a higher accuracy score. Smart AI model testing will ensure the answers are reliable — by having an agreed tolerance for that model, to safeguard a company's profitability while appropriately managing their risk. Because data changes over time, testing will ensure that an AI model remains stable when there is a alternation in the data within the ecosystem, or in how a insurance provider handles business. Such testing will even ascertain that the model is flexible enough to respond to those changes while remaining accurate.
Above all, AI may be used to test if the insurance company's AI models are ethical — and therefore they are not biased toward or against any specific groups of society. Even the largest dataset imaginable could be flawed or biased depending on the data that's included. Therefore, it is vital that these models be tested regularly, to ensure that the risk factors are being appropriately applied without bias, ensuring the business's reputation and it is brand.
Giving customers grounds to stay
As the old saying goes, it's cheaper to retain a current customer than to attract a brand new customer, so insurance providers may need to look at technologies that may improve customer retention. By recognizing the worth AI can bring to any or all aspects of the client experience, insurance providers can deliver fast, accurate and fair service to policyholders.
Whether a company provides health, car, home or other kinds of insurance, there will always be a line of competitors just waiting to grab away disappointed and frustrated customers. What's most significant is for insurance providers to pay attention to giving customers reasons to stay.