Page 40 - Insurance Times March 2024

provide personalized policy recommendations. For in- For investment-linked life insurance policies, robo-advi-
stance, Company X utilizes machine learning algorithms sors are gaining prominence. These automated systems
to analyze customer behaviors and preferences, result- analyze market trends and provide investment recom-
ing in tailored policy options that match individual mendations aligned with policyholders' risk profiles.
needs. RoboAdvisor offer investment advice tailored to policy-
holders' long-term financial goals.
2. Virtual Financial Advisors: Virtual financial advisors, of-
ten in the form of chatbots, are becoming increasingly 6. Digital Marketing and Lead Generation: AI-driven mar-
popular. These AI-driven assistants can provide basic keting tools help insurance companies target potential
policy information, answer frequently asked questions, clients with precision. By analyzing online behaviors and
and guide customers through the initial stages of policy demographics, companies can conduct targeted cam-
selection. LemonLife's chatbot, for example, helps cus- paigns that resonate with specific customer segments.
tomers understand policy terms and coverage options. Prosperity Insurance utilizes AI to identify potential leads
through social media engagement patterns.
3. Data-Driven Risk Assessment: AI's ability to analyze
complex data sets is transforming risk assessment. In- 7. Predictive Analytics for Policy Renewals: AI-powered
stead of relying solely on historical data, insurance com- predictive analytics aid in identifying policyholders likely
panies are using AI to incorporate real-time data from to lapse or renew their policies. This enables agents to
wearable devices and health apps. John Hancock Life proactively reach out to clients and help, ultimately im-
Insurance incorporates health data from wearables to proving customer retention rates. Guaranteed Trust Life
offer personalized premiums to policyholders who main- Insurance uses predictive models to foresee potential
tain an active lifestyle. lapses and engage with clients ahead of time.

4. Enhanced Customer Engagement: Technology allows Conclusion:
for improved customer engagement through digital The US life insurance industry is experiencing a profound
platforms and apps. Policyholders can access their policy transformation as AI and technology redefine the roles of
details, make claims, and seek assistance conveniently.
financial advisors and agents. From personalized policy rec-
Insurance Inc.'s mobile app empowers customers to
ommendations to streamlined underwriting processes, the
manage their policies seamlessly and initiate claims with
impact is far-reaching.
just a few taps.
From virtual assistants enhancing customer engagement to
5. Robo-Advisors for Investment-Linked Policies:
predictive analytics improving policyholder retention and AI-
driven investment advice, technology is enabling agents to
offer more efficient and tailored services to customers.

As insurance companies continue to harness these innova-
tions, the overall landscape will continue to evolve, expect-
ing financial advisors in the industry to embrace the tech-
nology and adapt to the changing paradigms of risk man-
agement, customer engagement and policy management.

IRDAI proposes to set up online marketplace 'Bima Sugam'
Regulator IRDAI has proposed to establish an online insurance market place, Bima Sugam, a one-stop solution to
enhance availability, accessibility, and affordability of a product. A digital public infrastructure called 'Bima Sugam --
Insurance Electronic Marketplace' is proposed to be established to empower and protect the interest of policyholders,
Insurance Regulatory and Development Authority of India (Irdai) said in a draft. The aim behind setting up the market-
place is to increase penetration of insurance in India and to enhance availability, accessibility, and affordability, it
added. Bima Sugam, it said will be a one-stop solution for all insurance stakeholders, vis-a-vis customers, insurers,
intermediaries or insurance intermediaries, and insurance agents.

36 March 2024 The Insurance Times