Personal insurance services are beginning to affect all industries and across the value chain.
As I noted in the first post in this series, there is a clear appetite among consumers for personal financial services. This applies equally in the insurance industry. In my latest post, we saw a snapshot of five insurers who delighted their clients with personalized services. But what are some other instructions that we expect the insurers to make way to personalization?
Personal insurance across all lines
Working with operators all over the world, we see personal services that begin to disturb all industries. In the home insurance sector, for example, some insurance companies are considering the use of smart home technology for monitoring accidents such as water leakage. Connected home appliances can warn homeowners and insurance companies so that they can prevent or minimize the damage. And carriers can offer further assistance by recommending or even arranging a technician or trader to perform repairs. Insurers can improve customer retention through free additional services and when damage is minimized and losses are reduced, discounts on renewal time.
In the health insurance sector, insurance companies may consider building an AI-enabled tool to capture and store customer health records ̵
Personal services can also be offered over the insurance chain. For example, in marketing insurers can analyze customer preferences, create a profile based on their social media, and use behavioral tracking to measure their potential interest in related products. Insurance companies can also use AI to identify the customer's personality types and adjust the tone of the marketing messages accordingly. Or they can use enhanced reality (AR) with geolocation to highlight the potential for damage to the customer's vehicle, home or property and provide customers with the coverage they need to protect their personal property.
In insurance policy ]insurers would be able to use data – from health tracking units, connected devices and associated cars – and advanced analyzes to personalize offers, prices and discounts. And when earning policy carriers can use AI-enabled bots and continuous learning to improve customer interactions, appropriately touch calls to a human operator based on customer tone, and gain greater insights and deeper understanding of customers.  For auto or home insurance, if an accident occurs, using IoT-connected sensors liability management can be triggered automatically. Or using geotagging, information about the nearest doctor or service center can be sent to customers automatically. AI can also be used to guide customers so that they provide the right kind of evidence, including appropriate images, for a requirement.
Personal Interactions with Customers
We also see a shift in personal interactions, with the Amazon Alexa and Google's Google Assistant highlighting the bar's customer expectations. Gone are the days when people waited endlessly for their calls to be answered by an agent or customer service representative. In their place, we now have bots, like Lemonade's Maya or Accenture's CATHY, which answers calls and does so much more. These sophisticated robots evolve across multiple interactions and become smarter with each conversation.
Manulife is a carrier who has utilized Amazon Echo to provide customers with coverage and limits on their health insurance. Customers can ask Echo questions like, "How much is left of my health insurance?" Aviva also uses the service to provide customers with quotes for their car insurance. The customers only mention their car manufacturing and model, and the boat responds in seconds.
Because customers have shown their willingness to talk to bots, carriers are investing in these techniques. Their goal is to save unnecessary operating costs and reduce the number of staff needed for customer service. But human interactions are still expected to be needed to deal with complex issues or possible escalations from robots that require human intervention.
With the technologies we now have available, the ways in which insurance services and interactions can be adapted can only be limited by the imagination of the insurers.
In my next post, I will explore different ways to adapt.