When it comes to getting insurance, many millennials understand the financial risk of not having it — the need — but might not be aware of what kind of policy they need or how to procure it. Current obligations, like student loans, mortgages and other debt, also can be roadblocks. It’s about affordability and share of the wallet. Equally inhibiting are the shortage of awareness regarding what they have to secure their monetary future and the way to travel regarding doing that.
The technology being applied to insurance could help clear several of these roadblocks and enable insurers to create a personalized customer experience that includes awareness of policy issues and ongoing engagement. Artificial intelligence, specifically machine learning on rich data sources and natural language processing, and an integrated environment driven by an application programming interface are the key technology components in this context.
Let’s get to the roots of insurance: What’s the purpose? At its core, insurance provides peace of mind. This basic realization can facilitate insurers navigate the roadblocks and be obtainable to assist millennials to meet their monetary desires through an easy and intuitive approach. Here’s how technology can help remove some of the roadblocks for millennials who want to acquire insurance.
- Consumer engagement: For millennials, their peer networks or service providers can be their trusted channels. Chatbots driven by AI and integrated with social media platforms or retail websites will help insurers facilitate discussions with customers to work out their desires. Chatbots leverage linguistic communication processing to have interaction with the buyer whereas applying needs analysis algorithms based on on the market products to produce personalized choices. Through ML (Machine Learning), chatbots can be continuously trained to enhance consumer engagement.
- A simpler and quicker application process: the method of information assortment and underwriting can be simplified, specifically for low-face-value policies. Instead of customers filling out applications, insurers, with consumers’ consent, could prefill the application with data from different sources. Insurers may begin integration with the increasing variety of {data|of knowledge|of information} aggregators from either personal health records or data from health exchanges. A competitive risk score algorithmic program can be sculptured based on regulative and the insurer’s underwriting pointers. A rules engine-based resolution combined with the chance score might automatize the underwriting method.
- Finding the right product: With the amount of consumer data available, insurance carriers could start by creating a risk profile for relatively smaller demographics than traditionally calculated. Make the merchandise personal based on the customer’s life stage and lifestyle at a degree in time. Insurance technologies of today provide an aggregated view of an individual’s health profile, which could be obtained with the individual’s consent. Combined with publicly available demographic information, actuaries could take advantage of the ML (Machine Learning) technologies to help them model variations of a base product, which then could be configured based on individual needs.
Implementing new technologies will take time and effort. To help with this method, consider leveraging an existing ecosystem with a third-party administrator that has a digital platform architecture and can extend that with capabilities from other insurance technologies and third-party services.
Overall, several millennials believe they have to guard their monetary future. They just need a partner they can trust: someone who’s interested in their well-being and not out there just to sell an insurance policy. Take interest within the overall well-being of the individual and in giving them peace of mind.
Extend the leverage for AI and ml beyond initial client engagement and into the applying method — and even into modeling a customized product.
Try to produce integration with growing insurance technologies and third-party services for each information and the capabilities to make customers aware of how their wants will be met, reach out through customers’ trustworthy channels, build added engagement, individualize the product and change the application method. In short, provide customers with peace of mind.
Insurance Market is a market place where we are serious about insurance and where professional parties come together to transact insurance only in the best and most responsible manner. Insurance Market offers a wide range of general insurance products (such as travel insurance, maid insurance, pet insurance and more) online and life insurance through personal advice from our qualified brokers. Please contact us at [email protected] or +65 69081811 if you have any questions.
