Originally published by -Insurance CIO Outlook on February 10, 2021
My predictions for InsurTech in 2021
There is a need for online services in order to
- Understand from Agent’s virtually to recommend products to buy online
- Online purchase of products
- However, this requires eKYC (Know Your Customer) for onboarding to validate the person’s authenticity
- Online Claims Submission
- Use of multi-lingual ChatBots & Robo Advisor to advise consumers on their Financial Needs using Robo Advisors (Income protection, Child Education, Medical & Critical Illness Cover etc.)
- Application of Artificial Intelligence (AI) & Machine Learning (ML) for
- Predicting New Customer Products to Buy
- Customer Churn is critical to predict when a person will lapse the policy, if a person is struggling with payment, the insurer & takaful operator can offer to reduce the cover & premium.
- Using AI for Insurance & Takaful Underwriting
- Predictive AI for Fraudulent Claims
- We need to use AI to
- Use AI to move from a detect-and-repair mindset to a predict-and-prevent philosophy
- AI should be viewed as a means to Augment but NOT replace human capabilities
- Clean data - IF data is wrong & not cleansed, then AI can give inaccurate responses
- Robotic Process Automation (RPA) is key to automating processes to automate activities
Understand from Agent’s virtually to recommend products to buy online
Agent’s need to connect virtually and use Financial Planning tools to recommend the right products to the customer, these can be offered online or via the agent.
Online purchase of products
Insurers & Takaful can offer online products to purchase. With the COVID-19 pandemic, remote Customer Onboarding is becoming a priority for Banks, Investment, Insurers & Takaful. However, this has the potential of fraud, thus you need to Know Your Customer, which can be achieved via online eKYC solutions. Behavioural Biometrics helps Banks, Insurers, Takaful & Investment companies for identity proofing, continuous authentication, potential account takeover fraud, and phishing scams.
Online Claims Submission
Users’ can submit claims online, but there is a potential for Claim Fraud; which can use AI to assess the fraudulent claims to assess the Claim Score and trigger to the Claim Assessor to follow up if the claim score limit is exceeded.
Use of multi-lingual ChatBots & Robo Advisor to advise consumers on their Financial Needs
Chatbots have become very popular, offering 24x7 multi-lingual access to prospects and customers, who may want to chat in the evenings when they have finished their work. In many cases, the Call Centres close around 5-6 pm, so are unavailable in the evenings. Chatbot services include enhancing customer support, promoting cross-selling, reviewing an account, reporting lost cards, making payments, renewing a policy, handling a refund and fraud detection.
Robo Advisors are more intelligent and support more solutions, for example providing financial advice based on a person’s lifestyle goals.
Application of Artificial Intelligence (AI) & Machine Learning (ML) for
Predicting New Customer Products to Buy
Predicting Product Recommendations for Banks, Insurance, Takaful & Investment requires analysis of existing customers using predictive analytics models to identify the next product they are likely to buy. This also includes tracking of historical loans repayment, investment, fraudulent claims etc.
Customer Churn is critical to predict when a person will lapse the policy
Losing customers is a long-standing issue; one of the key issues why they switch are “Unhappy Customers”. This happens in Banking, Insurance, Takaful & Investment sectors; when a customer calls with a complaint, call centres need to be response to address the person’s complaint. Once the complaint is addressed, you need to get customer feedback and track this.
Using AI for Insurance & Takaful Underwriting
Insurance & Takaful Underwriting is critical; with the potential for inaccurate proposal data, leading to acceptance of proposals. AI based Underwriting using Predictive Analytics includes statistical data and past history of customers and is used to analyse the risk involved.
Predictive AI for Fraudulent Claims
This can be applied assess the potential for fraudulent claims; taking into account identification of fraudulent healthcare indicators.
Artificial intelligence has the potential to move from a detect-and-repair mindset to a predict-and-prevent philosophy.
Robotic Process Automation (RPA) is key to automating processes to automate activities
Robotic Process Automation is having a big impact on FinTech & InsurTech, by automating processes and lowering cost of engagement and support. Robotic Process Automation helps banks and insurers engage customers in real time, increasing efficiency and productivity, and enabling straight-through processing.
RPA robots utilize APIs to trigger processes, capture data and apply applications just like humans do. They trigger responses that communicate with other systems in order to perform a variety of repetitive tasks.
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