Minimize Disruption for Reinsurance Business Clients with AI and ML
June 9, 2021
Unplanned events can have a devastating impact on reinsurance businesses, making it difficult to carry out day-to-day activities. Yet, these disruptions like the pandemic are inevitable even with the best planning and ideal circumstances. However, smart technologies like Artificial Intelligence (AI) and Machine Learning (ML) can help providers anticipate such events and minimize disruption through robust strategic planning. Artificial Intelligence and Machine Learning can glean powerful insights from these occurrences and formulate possible preemptive solutions that the human mind cannot.
Let’s look at how reinsurance players can leverage intelligent technologies to reduce disruptions and associated risks.
AI and ML Reduce Risk by Making Data More Secure
As much as new technologies provide innovative solutions for business growth, it has also brought new risks. The enterprise cyber-attack is colossal and continues to grow and evolve rapidly. If not mitigated against, cybersecurity attacks can cause massive disruption in the reinsurance industry, leading to big losses. Recent studies reveal the cost of cybercrime globally now stands at $1 trillion annually. With billions of time-varying signals to assess and accurately calculate, improving cybersecurity is no longer a human-scale problem for insurers.
Luckily, Artificial Intelligence (AI) based tools for cybersecurity can help your information security teams to reduce breach risk and improve security posture efficiently and effectively. AI and ML reduce risk by quickly analyzing and identifying millions of events, including malware exploiting vulnerabilities, risky behavior that could lead to phishing, and malicious code download. The technologies learn with time and draw from the past to identify new types of attacks now, thus enabling robust detection and response to deviations from the established norms.
AI and ML Help Keep Rates Down
The unprecedented disruption caused by crises such as the COVID-19 pandemic ultimately leads to increased service costs and poor customer experience that can trigger client attrition. However, integrating AI and ML solutions into business operations can be an effective way for reinsurance providers to speed up response time, protect their revenue, and bring down costs. The elimination of waste corrected through AI and ML insights will allow greater efficiency and prioritization of work. It can help reinsurance companies design more affordable policies while also improving profitability.
Additionally, companies experience a massive increase in customer queries during unplanned disruptive events like natural disasters and catastrophic events. However, most companies cannot handle a huge influx of requests leading to customer dissatisfaction and bad customer experience. According to research from HubSpot, 90% of consumers say that getting an immediate response to customer service questions is important. In such scenarios, AI and ML technologies help deliver an integrated approach to speed up response time and protect revenue by personalizing customer care delivery.
Some of the AI predictive solutions that can help drive cost reduction with Customer Experience (CX) and attrition gains include:
- AI virtual assistants that provide customer assistance through virtual agents for simpler issues.
- AI human assistance for customer support via specialist agents for complex issues. The AI technology can be integrated into care flow via Interactive Voice Response, known as IVR, to intercept complex calls and route them to the agents trained to resolve such issues.
AI and ML Minimize Disruption by Anticipating Shifting Customer Behaviors
One of the significant benefits of AI is that it enables reinsurance marketing teams to analyze and understand consumer buying behavior. During disruptive events, marketers can use AI and ML solutions to study the behavior of users and design effective strategies in their marketing plans and strategies. In essence, AI and ML enable the collection and analysis of data such as browsing patterns, searches, and views that can provide great insights that enable a better understanding of the audience’s preferences. Additionally, new AI and ML features, such as customized marketing messages, compel customers to check out the brand’s offers, thereby boosting your behavioral marketing.
Stay Competitive in a Hot Market
Reinsurance providers implementing AI and ML reduce risk in their operations by providing quality services more efficiently than their competitors. AI software typically offers automated services with a nonexistent error margin, thus ensuring successful results while positioning your services as the best option for customers. Since AI tools collect and analyze data, brand managers and product managers can conduct extensive analysis and research on social media platforms, websites, and other forums. Insights from the analyzed data help managers understand customer needs better and choose the most relevant and valuable product or service offering that best meets a prospect’s needs.
Get Help from the Professionals
Intelligent Automation technologies enable insurers to respond effectively to crises by making use of their dynamic capabilities. AI and ML help providers reduce operational costs, increase efficiency, grow revenue, and improve customer experience. These resources also sharpen the competitive edge of your reinsurance operation.
Need help getting started with your AI and ML integration? Contact OZ today. We are a proven Intelligent Automation technologies developer that can help your team raise concerns, drill down, and formulate the right AI and ML systems to enhance customer experience through digital innovation.