10%

Try : Insurtech, Application Development

Edtech(5)

Events(33)

Interviews(10)

Life@mantra(10)

Logistics(1)

Strategy(14)

Testing(8)

Android(44)

Backend(28)

Dev Ops(2)

Enterprise Solution(22)

Frontend(28)

iOS(40)

Javascript(13)

AI in Insurance(29)

Insurtech(58)

Product Innovation(36)

Solutions(15)

Augmented Reality(10)

Customer Journey(8)

Design(7)

User Experience(25)

E-health(3)

HealthTech(6)

mHealth(3)

Telehealth Care(1)

Artificial Intelligence(103)

Bitcoin(7)

Blockchain(14)

Cognitive Computing(7)

Computer Vision(6)

Data Science(14)

FinTech(41)

Intelligent Automation(26)

Machine Learning(45)

Natural Language Processing(12)

How Technology is Transforming Insurance Distribution Channels

4 minutes, 31 seconds read

‘Insuring’ has always been a mundane and complicated subject for businesses. Distribution channels allow customers to access and purchase products efficiently. According to JM Financial, online insurance sales for new business are fast catching up and are likely to grow at a CAGR of 13 percent to become a $37 billion break by 2025.

Each distribution channel requires different resources to be effective and impact the pricing structure. The type of insurance business model determines its structure, strategy and placement in the market.

Take, for instance, India. The market size of the online insurance business in India is currently $15 billion, but the overall insurance penetration rate is just 3.7% (Statista, 2018). 

The regions where insurance penetration is low poses an immense potential for the digital premium market. Insurers can leverage the following distribution channels to undermine the profound potential.

1. Self-directed or Direct Distribution Channel

Through Self-directed or direct distribution channels, insurers can reach out to the customers without shelling out commission for any middle man. With an increase in the population of tech-savvy customers, the ready availability or online channel of advice or transaction capabilities is the need of the hour. 

Online channels, websites, social media platforms, e-commerce and kiosks are some examples of the direct distribution channels in insurance. The 2017 Global Distribution and Marketing Consumer Study reveals that nearly 51% of digitally active groups of consumers (39% of all Insurance consumers) have purchased insurance through an online channel. The direct insurance distribution channel encourages self-service and independent decision making.

NLP-powered chatbots are a great way to provide a self-service portal for buying/renewing insurance policies. Leading Insurers like Religare are leveraging the direct distribution channel by integrating chatbots in different platforms like their website, mobile app, and even on third-party apps like WhatsApp.

2. Assisted Distribution

Agents and brokers are typically the key players in the insurance distribution channel, with market shares of 42% and 25% respectively. The old school face-to-face distribution channel is very much alive and is integrated with tech assisted models to ensure more leads and conversions. They mainly play a part in advising and managing complex insurance products.

agent's share in assisted insurance distribution channel

Agents, insurance brokers and reinsurance brokers remain the most recognized insurance purchase channel. The Gartner Group reports that 60% of the US GDP is sold through assisted or indirect channels. Cognitive technology is becoming a key enabler to strengthen the assisted distribution channel. PwC suggests leveraging analytics solutions (mainly predictive analytics and behavioral analytics) to increase sellers’ knowledge as well as skills.

[Related: How behavioral psychology is fixing modern insurance claims]

The technologies that are empowering learning for Insurers include augmented reality, machine learning, data analysis and NLP.

upcoming technologies in assisted distribution channel

For example, Zelros, a European AI startup, is augmenting the knowledge of sales and customer representatives through best product recommendations, advisory, and pricing based on the customer profile in real-time.

3. Affinity-based Insurance Distribution Channels

The affinity channel focuses on distributing products to a tightly-connected group of consumers with similar interests. Traditionally, the affinity-based distribution channel involved peer-to-peer networks, brokers and aggregators. While the network model remains the same, the model has become digital and tech-driven for affinity channels. And technology is playing a vital role in expanding the consumer base. The key benefits of the affinity distribution channel are-

  • Common platform for all stakeholders.
  • One-stop access to policies and claims.
  • Centralized database for insightful analysis.
API-based Insurance Model Affinity Distribution Channel

This distribution channel is also a part of B2B2C or API-based insurance business models. Here, Insurers can leverage 3rd party apps to distribute their policies. APIs or Application Programming Interfaces are lightweight programs to extend the functionality of existing apps. Travel, airbus, hotel, bank and retail are some examples of affinity-based distribution channels.

Finaccord estimates that airline companies hold a distribution share of up to 10% of the travel insurance market. The annual revenue from airline and travel insurance providers partnership may range from $1.2 billion to 1.5 billion in premiums.

[Related: 4 New Consumer-centric Business Models in Insurance, How InsurTech-Insurance Partnership Delivers New Product Innovations]

The majority of travel insurance policy sales across the globe are done through some kind of affinity partner instead of via a direct sales channel.

Jeff Rutledge, President & CEO, AIG Travel
Source: Insurance Business UK

The Bottom Line

In the countries where buying an Insurance is not mandatory, market penetration is extremely low for Insurers. Being meticulous in sales and marketing efforts and educating customers about the benefits of insurance is just not sufficient. Convenience is the key to new generation consumers. Therefore, insurers need to invest in technology and make insurance policies accessible to the new-age digital consumers through the channel of their choice. 

Michael D. Hutt and Thomas W. Speh, in their book – Business Marketing Management: B2B, suggest a six-step process to select among the most efficient insurance distribution channels-

  1. Determine the target customers.
  2. Identify and prioritize customer channel requirements by segment.
  3. Access the business’s capabilities to meet those customer requirements.
  4. Use the channel offering as a yardstick against those offered by competitors.
  5. Create a channel solution for customers’ needs.
  6. Evaluate and select the most effective among the distribution channels.

We’ve developed insurance chatbots for organizations like Religare to automate policy distribution and renewal. For your business-specific requirement, please feel free to reach us at hello@mantralabsglobal.com.

Cancel

Knowledge thats worth delivered in your inbox

Enhancing digital patient experience with healthcare chatbots

5 minutes read

Chatbots are fast emerging at the forefront of user engagement across industries. In 2021, healthcare is undoubtedly being touted as one of the most important industries due to the noticeable surge in demand amid the pandemic and its subsequent waves. The Global Healthcare Chatbots Market is expected to exceed over US$ 314.63 Million by 2024 at a CAGR of 20.58%.

Chatbots are being seen as those with high potential to revolutionize healthcare. They act as the perfect support system to agents on the floor by providing the first-step resolution to the customer, in terms of understanding intent and need, boost efficiency, and also improve the accuracy of symptom detection and ailment identification, preventive care, feedback procedures, claim filing and processing and more.

At the outset of the COVID-19 pandemic, digital tools in healthcare, most commonly chatbots, rose to the forefront of healthcare solutions. Providence St. Joseph Health, Mass General Brigham, Care Health Insurance (formerly Religare), and several other notable names built and rolled out artificial intelligence-based chatbots to help with diagnostics at the first stage before a human-human virtual contact, especially while differentiating between possible COVID-19 cases and other ailments. The CDC also hosts an AI-driven chatbot on its website to help screen for coronavirus infections. Similarly, the World Health Organization (WHO) partnered with a messaging app named Ratuken Viber, to develop an interactive chatbot for accurate information about COVID-19 in multiple languages. This allowed WHO to reach up to 1 billion people located anywhere in the world, at any time of the day, in their respective native languages.

For Care Health Insurance, Mantra Labs deployed their Conversational AI Chatbot with AR-based virtual support, called Hitee, trained to converse in multiple languages. This led to 10X interactions over the previous basic chatbot; 5X more conversions through Vanilla Web Experience; Drop-in Customer Queries over Voice Support by 20% among other benefits.

Artificial Intelligence’s role in the healthcare industry has been growing strength by strength over the years. According to the global tech market advisory firm ABI Research, AI spending in the healthcare and pharmaceutical industries is expected to increase from $463 million in 2019 to more than $2 billion over the next 5 years, healthtechmagazine.net has reported. 

Speaking of key features available on a healthcare chatbot, Anonymity; Monitoring; Personalization; collecting Physical vitals (including oxygenation, heart rhythm, body temperature) via mobile sensors; monitoring patient behavior via facial recognition; Real-time interaction; and Scalability, feature top of the list. 

However, while covering the wide gamut of a healthcare bot’s capabilities, it is trained on the following factors to come in handy on a business or human-need basis. Read on: 

Remote, Virtual Consults 

Chatbots were seen surging exponentially in the year 2016, however, the year 2020 and onwards brought back the possibility of adding on to healthcare bot capabilities as people continued to stay home amid the COVID-19 pandemic and subsequent lockdowns. Chatbots work as the frontline customer support for Quick Symptom Assessment where the intent is understood and a patient’s queries are answered, including connection with an agent for follow-up service, Booking an Appointment with doctors, and more. 

Mental Health Therapy

Even though anxiety, depression, and other mental health-related disorders and their subsequent awareness have been the talk around the world, even before the pandemic hit, the pandemic year, once again could be attributed to increased use of bots to seek support or a conversation to work through their anxiety and more amid trying times. The popular apps, Woebot and Wysa, both gained popularity and recognition during the previous months as a go-to Wellness Advisor. 

An AI Wellness Advisor can also take the form of a chatbot that sends regular reminders on meal and water consumption timings, nutrition charts including requisite consultation with nutritionists, lifestyle advice, and more. 

Patient Health Monitoring via wearables 

Wearable technologies like wearable heart monitors, Bluetooth-enabled scales, glucose monitors, skin patches, shoes, belts, or maternity care trackers promise to redefine assessment of health behaviors in a non-invasive manner and helps acquire, transmit, process, and store patient data, thereby making it a breeze for clinicians to retrieve it as and when they need it.

Remote patient monitoring devices also enable patients to share updates on their vitals and their environment from the convenience and comfort of home, a feature that’s gained higher popularity amid the pandemic.

A healthcare chatbot for healthcare has the capability to check existing insurance coverage, help file claims and track the status of claims. 

What’s in store for the future of chatbots in Healthcare? 

The three main areas where healthcare chatbots can be particularly useful include timely health diagnostics, patient engagement outside medical facilities, and mental health care. 

According to Gartner, conversational AI will supersede cloud and mobile as the most important imperative for the next ten years. 

“For AI to succeed in healthcare over the long-term, consumer comfort and confidence should be front and center. Leveraging AI behind the scenes or in supporting roles could collectively ease us into understanding its value without risking alienation,” reads a May 2021 Forbes article titled, The Doctor Is In: Three Predictions For The Future Of AI In Healthcare. 

Cancel

Knowledge thats worth delivered in your inbox

Loading More Posts ...
Go Top
bot

May i help you?

bot shadow