Page 25 - Insurance Times March 2021

calculate payout. Meanwhile, Indian company ICICI future insight about customer's preferences and tailoring
Lombard has created an AI-based cashless claims settlement relevant products. Health insurance companies are coming
process, which can be completed in just a minute. up with rewarding pre-emptive care that is focused on
encouraging customers to look after their personal well
Development of insurance product being. If a person remains healthy, companies don't need
according to needs: to invest in claim payment and management process.

At the heart of artificial intelligence lie data, and the For instance, Aditya Birla Health Insurance has planned
availability of data in the insurance workflow. With good wellness benefits to encourage customers to stay healthy.
quality data and machine learning for helping to define AI's predictive algorithms scan past year's claim activities
algorithms and business processes, insurers can be in a and hospitalization data to provide incentives to customers
better position to know when and how to communicate to improve health & wellness. This way, health risks will be
with the consumer. The industry can begin to gain a better minimized and so will be the company's resources. Thus,
insight into individual consumer habits, their needs nowadays, start-ups leverage AI's unique potential to scour
according to life stages - such as home, location, family and through piles of claim data and coverage patterns to be
social activities - as well as preferences. more proactive and anticipate health risks at individual level
before they actually transpire.
This puts insurers on the road to creating a more seamless
way of selling insurance, towards an optimum mix of By automating and applying cognitive learning to their data
insurance products for a particular customer, at the most collection processes, forward-thinking insurance companies,
appropriate time and across the right channels. Changes are including AIA Singapore, are also advancing their customer
coming and creating a less invasive, more responsive profiling capabilities. Equipped with the power to unify and
experience for policyholders. Using public records data and derive insights from their internal and external customer
other risk attributes where applicable (such as medical
data, insurers are able to build a more comprehensive
history, prescription history, contributory databases)
picture of their customers, such as their insurance needs,
consumers can experience quicker, better processes and interests and life stages, for more effective targeting.
allowing insurers to set appropriate life insurance premiums.
We refer to it as the use of social determinants for Insurers can segment their audience based on these
healthcare risk stratification.
attributes, and use deep learning to predict the conversion
rate of these segments. With such insight, insurers can then
Another area insurance companies are using AI is to inform decide the relevant product recommendations for each
their product and policy design, By streamlining and speeding customer segment. Insurance companies are also enhancing
up the collection and analysis of massive data from owned customer profiling with AI-enabled voice and facial
channels, third-party sources and agents, insurers can use
recognition, which helps create biological customer profiles
machine learning to discover customer trends and interests
for fast and accurate verification, as well as the tracking of
in real time. These insights are then being used to develop
behaviors and attributes.
and improve product and policy design. Chinese online-only
insurance company, ZhongAn, is a company that continually
releases innovative products and policies, many of which are Marketing and relevant products:
developed with the help of advanced AI techniques such as Being a part of the competitive market, insurers need to
machine learning and image recognition. For example, they capitalize on a vital marketing strategy which goes beyond
came up with niche policies to insure against cracked mobile the traditional cold calling approach. The old blanket
screens and shipping return products. methods are on the verge of extinction since digital
disruption has already shaken the grounds of insurance field.
Predictive Analytics for proactive Customers today seek sophisticated, luxurious and
extremely personalized services with custom sales tactics.
measures: Using the combined power of predictive analytics, NLP and
Predictive Analytics backed by Machine Learning is now AI in the insurance industry, agents can gain access to the
perhaps the heart of intelligent services across many full profile of customers and prospects. This data can be
business verticals that have adopted AI-powered solutions. further analyzed to generate mature insight, accurate
However, this smart capability is not just aimed at driving predictions on customer preferences and what exact

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