The insurance sector has a probably unique peculiarity. It has sold the same product since its origins centuries ago. This could lead to the conclusion that it is a sector that does not advance or transform. However, it is the opposite, there are many things that are fluctuating in the insurance world globally and at the regional level.
In the following article, we intend to discover how AI (Artificial Intelligence) and the digital age present multiple opportunities for insurance companies. Obviously in each country, there may be particularities, but we will focus on those that in our opinion are most relevant and widespread in the region.
The impact of the AI on insurance business:
Insurance companies have always sought to approach their agents or brokers as a way to ensure their loyalty or preference over other companies; as well as its end customers as a way of being less dependent on the former.
This has not been easy for them throughout history. For multiple reasons, that we will surely analyze on another occasion. But, thanks to new digital resources like AI, companies have attractive and beneficial means to achieve this for the first time. Thus, generating possibilities of access, personalization, and contact, at reasonable costs, as they have never had before.
To this, we have to add the change in the mentality, habits, and behaviors of customers. As a result of all this, insurers are also finding in the digital channel a means to streamline their tasks, be more efficient, and ultimately more profitable.
Analytics: information as the basis of transformation:
What is analytics? It is the intensive use of large volumes of data to analyze behaviors, realities, facts, etc. and generate predictive knowledge in order to answer the intelligent questions that exist in the company, promoting action and aligned behaviors.
But we can expand the concept with the following: how much better could a distribution network and a company’s customer base be managed if good quality data were available first? And after having them, use them to generate personalized offers at times when there is a greater probability of accepting the offer and taking out insurance.
The digital transformation of the insurance business:
As we have seen, we firmly believe that transformation is possible. And, it is necessary especially in a world where new trends and technologies are going to emerge that make changes ever faster.
Business models have to adapt to the new environment, new customer demands, and the possibilities that companies have today and those they will have in the near future.
The opportunities are many, the decision of each company is simple to pose: either ride the wave or let it pass and see what the rest do.
We firmly believe that the second answer is not the best to ensure the sustainability of a company. Be careful, you don’t necessarily have to risk everything.
But, technological advance unequivocally implies that companies gradually or more quickly adopt changes and take advantage of new technologies if they intend to expand or at least survive.