Page 23 - Insurance Times March 2024

uct level, more than 90 percent of multichannel insur- market trends, competitive landscape help insur-
ers provide online access to their motor and household ers develop products which are attractive to cus-
insurance products, but only about 40 percent do so for tomer and profitable to insurer.
full health coverage-and a mere 11 percent for tradi- Fraud Detection and Prevention
tional or unit-linked life insurance. Just one of the play-
Data analytics can help in identifying suspicious pat-
ers with life insurance products in its portfolio does not terns and anomalies in claims data and help to
require face-to-face interaction for purchasing."
detect fraudulent activities.
There is urgent need for increased emphasis on sale Further predictive modelling and machine learning
through online channels, Mobiles, websites mobile apps algorithms help insurers to flag potentially fraudu-
and other digital platforms. lent claims early, reducing financial losses.
Even Traditional agents are being empowered with
Customer Segmentation and Enhanced Cus-
mobile apps and they are able to login and issue policy
tomer Satisfaction
through their mobile in 10-15 minutes.
Insurers can tailor their marketing efforts, product
offerings and distribution channels to effectively
2. Omni channel Communication
target specific customer segments and improving
Customers are expecting a seamless and integrated customer acquisition and retention.
digital experience through multiple points of contacts,
By leveraging analytics, insurers can personalize
be it social media, websites, mobile apps, chatbots or
email. As per 2019, McKinsey report, "one in two cus- their interactions with customers, streamline pro-
cesses, and provide more responsive and efficient
tomers were "multi-access," choosing to engage with
carriers via multiple channels. These findings indicate services, thereby enhancing the overall customer
experience.
that consumers want to not only engage with insurers
via their preferred channel but switch between chan-
nels as they shop. In other words, they want an 4. AI for underwriting and Claims
omnichannel experience." AI is revolutionising multiple domains of Insurance, Un-
derwriting and Claims taking the lead.
There is a lack of seamless Omnichannel service in in-
Underwriting
surance market today, but then it provides the insurers
Better Risk Assessments, STP processing are en-
and opportunity to create disruption in this sector and
abling Policies being priced, distributed, underwrit-
provide top tier Cross Channel experiences.
ten, and issued almost real time. With Introduction
3. Data Analytics of Predictive Underwriting, future risks can be pre-
Using Predictive Data analytics and Machine Learning dicted based on current data, leading to better
(ML) tools, Insurers can identify likelihood of future out- pricing. AI also helps in eliminating human error.
comes with historical data. This would help in better Claims
client retention, cross selling and fraud detection and Though STP claims are still a far-fetched goal in Life
thus leading to increased revenue to the Carriers. Insurance, AI is being used to detect fraudulent

Data analytics can be broadly categorised in the fol- claims and partial automation of claims process flow.
lowing categories-
Risk Assessment and Underwriting-
Analysis of wide range of factors such as demo-
graphic data, medical history, lifestyle habits, and
occupation help Life Insurance companies to assess
risk more accurately.

Also advanced analytics techniques enable insurers
to price policies more effectively and mitigate ad-
verse selection by predicting Mortality and morbid-
ity risks.

Product Development and Pricing
Optimal pricing strategies if based on risk profiles,

The Insurance Times March 2024 21