38% profit increases from artificial intelligence within the next 17 years--claims included in Allianz’s recent…
Artificial intelligence in property & casualty insurance has become pervasive. Most information about this in the press focuses on improving front office functions, helping customer service handle the tens of thousands of customer interactions, or on powering new capabilities to glean insights from the industry’s voluminous data stores. But now the light has begun to shine on how artificial intelligence can transform property and casualty claims. What about artificial intelligence for property & casualty claims? Here are a few scenarios that are currently being created or implemented:
AI is the coming wave of transformation but there are current tools available right now to improve customer experience in the near term. Consider implementing what is ready now while the far-reaching changes go from science fiction to right in front of us.
The majority of consumers have smartphones. They expect to be able to take care of all or most their insurance interactions on their mobile internet, using chat and other apps, and also by talking on the phone. Design of all online customer touch points needs to work flawlessly on current smartphones. Not just parallel websites for mobile that strip down the site. Not just a dedicated app from your brand. Start designing from the mobile context from the start. Gone are the days when anyone with an app can expect to take up precious storage space on their customers’ phones. Customers spend hours communicating on their favorite apps, and that isn’t going to be their insurance company’s app. These favorite apps are not letting brands into their walled garden. The most powerful way to demonstrate to insureds you are their trusted partner is by being on the the most prevalent communication channels your policyholders are using. Is your brand on Facebook Messenger? Snapchat? WhatsApp? Policyholders want you to come to where they are. Right now that is on their smartphones.
Many of the tools that are used in the corporate world have been reinvented several times, now within reach for customers to use when connecting with the companies they deal with. Just like email and the internet which were created to serve niche academic users, video conference calls started out inside the enterprise with expensive equipment and poor customer experience. Many generations of video conferencing platforms later, customers can be invited to a video chat by sending a link in a chat. Expensive and rare in-person consultations with agents or claims specialists can transform into helpful, rapport-building appointments that are convenient for both the agent and the insured.
Another hotbed of reinvention is the way customers and insurers can pay and collect money. Much has been written about how AI and technology automation can help collect premiums from consumers. This can reduce the time from billing to payment. It can also offer multiple payment and communication channels that make paying the bill almost delightful.
Where current automation and AI tools can really help is in improving the experience of customers and provider partners who expect payment from the agency or carrier. Keeping the network of myriad providers paid and paid quickly makes for excellent service provision to insureds. More importantly, policyholders are never more critical and impatient that when they are waiting for claims payments to arrive. This is an ideal place to be impressive. Let AI and integrated automation ensure that claims payments don’t take weeks or even days to get to customers. Show the level of professionalism and trust by offering safe, speedy claims payments.
As a side benefit, many consumers opt for electronic payments, lessening the risk that payments will go awry or risk theft.
Change the equation by giving insureds the tools and information to help improve their behaviors. With the prevalence of smartphones, telematics programs can work with the insurer users to measure risky behaviors, provide feedback and education and let the customer feel like a partner in reducing their chances of experiencing a loss and as a bonus, they get to earn discounts on their insurance bills. Several options are available in the marketplace that are ready to offer to insureds. Select certain policyholders like new teen drivers or make it a special program for new homeowners. Low IT commitment options let you launch these types of products within three months.
When creating their innovation strategies, insurers can increase the probability of success by implementing changes using a phased approach. It is risky to delay, betting the future on huge projects that take years. Instead insurers should approach technology launches at various scales using readily available products and services. These current tech offerings make incremental improvements over time possible and set the stage for larger transformations that can be less risk for the insurer. This approach wins customer loyalty by showing the company pursues continuous improvement when it comes to the customer experience.
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