10%

Try : Insurtech, Application Development

Edtech(5)

Events(34)

Interviews(10)

Life@mantra(11)

Logistics(1)

Strategy(14)

Testing(8)

Android(46)

Backend(29)

Dev Ops(3)

Enterprise Solution(22)

Frontend(28)

iOS(41)

Javascript(13)

Augmented Reality(17)

Customer Journey(12)

Design(13)

User Experience(34)

AI in Insurance(31)

Insurtech(59)

Product Innovation(37)

Solutions(15)

E-health(3)

HealthTech(8)

mHealth(3)

Telehealth Care(1)

Telemedicine(1)

Artificial Intelligence(109)

Bitcoin(7)

Blockchain(18)

Cognitive Computing(7)

Computer Vision(8)

Data Science(14)

FinTech(44)

Intelligent Automation(26)

Machine Learning(46)

Natural Language Processing(13)

5 Revolutionary AI-driven Marketing Trends in Insurance for 2020

5 minutes, 41 seconds read

Insurance consumers around the globe are seeking convenience and expecting better customer experience. From millennials to Gen Z, with the agile connectivity, irrespective of the industry has numerous options to choose from. As the competition intensifies the insurance industry has to jump into the bandwagon of technovation in order to provide improved accuracy, cost-saving and excellent customer experience. 

Here is a list of the marketing trends in insurance that will prove to be a game-changer in the year 2020.

1. Robo Financial Advisors

According to a Business Insider Intelligence forecast, by the year 2020 Robo-advisers will manage investment products worth $1 trillion, which will spike up to $4.6 trillion by as early as 2022.

Robo advisors have been around for quite some time. In the year 2008, during the financial crisis, Jon Stein, a 30-year old entrepreneur launched “Betterment”, the first Robo-advisor. In recent years due to its low investment rates and data input based research results, it has increased in popularity. 

It is basically designed for the people who want to manage their finances with low management cost. Based on respective data inputs, the Robo-advisors offer any advisory services. 

The main purpose behind the making of the Robo-advisor is to bring the financial services to the wide range of population with lower investment cost as compared to the traditional human advisors. Upwardly.com, 5Paisa.com and Goalwise.com are some applications of Robo-advisors.

Behind the scenes of the software of Robo-advisors are actual human beings who track the market regularly and adjust the algorithms based on the current market condition. Robo-advisors are a boon to the end-users as they can invest in direct plans of mutual funds without shelling any commission. However lack of personalization and one-size-fits-all products are the areas of improvement.

2. Data Integration: The Future of Marketing

IDC estimates that, by the year 2020, the digital cosmos will reach 44 zettabytes, further complicating the lives of marketing professionals.

Integrating data sources is vital for any company, whether B2B or B2C to successfully meet Customer Experience expectations thereby drive accelerated sales revenue.

With an integrated source of information, retailers can administer and optimise marketing through KPI’s, metrics and dimensions that would not have been possible with the separate source system. In order to upscale marketing operations, a connected viewpoint is essential to evaluate the campaigns, audiences, events and channels, and drive the strategic goals.

From an operational viewpoint, CRM solution provides the organization with new business and the ERP system allows to manage and drive businesses around obstacles. A good place to start with the data integration is by Integrating these two systems shall provide marketers and the organizational sales-force with vital information, that can be shared with the stakeholders.

3. AI-driven Copywriting

Artificial intelligence can create cancer combating drugs, control self-driving cars, defeat the best brains at incredibly complex board games, but one realm it can’t perform flawlessly is communicating.

To help solve the issue, Google has been feeding it’s AI with more than 11,000 unpublished books, including 3,000 steamy romance titles. 

Autoencoder, a type of AI network, uses a data set to reproduce a result (in this case copywriting) using fewer steps. Insurers can harness this AI capability to create sentences and suggest the best-optimised language to approach the customers.

AI copywriting is evolving to a whole new level. Google granted  €706,000 (£621,000) to the Press Association, to run a news service with computers writing localised news stories. AI with the help of human journalists can write up to 30000 news stories a month and scale up the volume of the stories that would otherwise be impossible to produce manually.  

“Skilled human journalists will still be vital in the process, but Radar allows us to harness artificial intelligence to scale up to a volume of local stories that would be impossible to provide manually. It is a fantastic step forward for PA.”

  • PA’s editor-in-chief, Peter Clifton 

4. Gamification of Insurance

At the nexus of marketing trends ranging from social networking to the IoT to behavioural science and wearable tech;  gamification is a powerful lever for insurers and insurance agents. It creates an enriching digital experience and customer-centric business model.

Gamification offers great potential value to the insurance business process in the realm of consumer engagement and customer experience. From millennials to Gen Z, it has emerged as a useful practice and effective means to target early technology adopters by:

  • Transforming mundane tasks into interesting and fun experiences that keep users returning.
  • Increases brand awareness, brand penetration and affinity.
  • Increase sales by educating customers about product suitability and guide them to buying the product.
  • Motivating people to act in areas of healthcare and wellness, safe driving, financial planning and sustainability.

Ingress and AXA redefined the world of gaming and advertisement. December 5th, 2014, Niantic Labs the creator of ‘Ingress’ partnered with AXA. In the game, AXA Shield was initially only obtainable from AXA Portals, leading you to AXA business locations in person.

5. Advanced AI Capabilities in Insurance

Innovation and technology are the next frontiers in the insurance industry. While automation and IoT are already a reality for insurance, with the advent of AI there has been a holistic approach to Insurance automation. With insurance leveraging AI, it has expanded its reach to more ecosystems than ever before. Deploying AI capabilities in insurance can help make smarter underwriting decisions, fraud detections, risk assessment and create a better customer experience.

AI is driving significant change in business with insurance being no exception. It has the potential to enhance the insurance business model by-

  1. Improving the speed of the workflow: AI and RPA in insurance reduce redundancy of task. Automation of day to day tasks would reduce cost and time consumption thereby increasing accuracy, quality and competency.
  1. Customizing the services for better customer experience: One size no longer fits all, and the same goes for the insurance industry. With focus on individual markets, insurers can create niche usage-based products to sell the packages in a variety of ways.

Parag Sharma, CEO, Manta Labs and AI thought leader is going to speak about the Internet of Intelligent Experiences™: CX for the Digital Insurer at India Insurance Summit and Awards 2020 on March 12, 2020. Catch him live at IISA 2020.

Details

  1. Providing new insights: Insurance is no guessing game. Data in silos is the biggest drawback for any industry. AI in insurance can integrate this data and provide analytics to help actuaries have a better insight while making a decision about a product.

Marketing Trends in Insurance: The Bottom Line

Today, at the core of marketing in Insurance, lies AI, Machine Learning and advanced data analytics to foster better experiences for the end-user. We’ve listed 5 most important trends that have the potential to shape marketing business models for Insurance and InsurTech firms. Be it Robo financial advisors or gamification, impressing customers remains the prime goal for Insurers.

Have thoughts and queries regarding upcoming marketing trends in Insurance? Please feel free to drop us a word at hello@mantralabsglobal.com.

Cancel

Knowledge thats worth delivered in your inbox

Retention playbook for Insurance firms in the backdrop of financial crises

4 minutes read

Belonging to one of the oldest industries in the world, Insurance companies have weathered multiple calamities over the years and have proven themselves to be resilient entities that can truly stand the test of time. Today, however, the industry faces some of its toughest trials yet. Technology has fundamentally changed what it means to be an insurer and the cumulative effects of the pandemic coupled with a weak global economic output have impacted the industry in ways both good and bad.

Chart, line chart

Description automatically generated

Source: Deloitte Services LP Economic Analysis

For instance, the U.S market recorded a sharp dip in GDP in the wake of the pandemic and it was expected that the economy would bounce back bringing with it a resurgent demand for all products (including insurance) across the board. It must be noted that the outlook toward insurance products changed as a result of the pandemic. Life insurance products were no longer an afterthought, although profitability in this segment declined over the years. Property-and-Casualty (P&C) insurance, especially motor insurance, continued to be a strong driver, while health insurance proved to be the fastest-growing segment with robust demand from different geographies

Simultaneously, the insurance industry finds itself on the cusp of an industry-wide shift as technology is starting to play a greater role in core operations. In particular, technologies such as AI, AR, and VR are being deployed extensively to retain customers amidst this technological and economic upheaval.

Double down on digital

For insurance firms, IT budgets were almost exclusively dedicated to maintaining legacy systems, but with the rise of InsurTech, it is imperative that firms start dedicating more of their budgets towards developing advanced capabilities such as predictive analytics, AI-driven offerings, etc. Insurance has long been an industry that makes extensive use of complex statistical and mathematical models to guide pricing and product development strategies. By incorporating the latest technological advances with the rich data they have accumulated over the years, insurance firms are poised to emerge stronger and more competitive than ever.

Using AI to curate a bespoke customer experience

Insurance has always been a low-margin affair and success in the business is primarily a function of selling the right products to the right people and reducing churn as much as possible. This is particularly important as customer retention is normally conceived as an afterthought in most industries, as evidenced in the following chart.

Chart, sunburst chart

Description automatically generated

        Source: econconusltancy.com

AI-powered tools (even with narrow capabilities) can do wonders for the insurance industry at large. When architected in the right manner, they can be used to automate a bulk of the standardized and automated processes that insurance companies have. AI can be used to automate and accelerate claims, assess homeowner policies via drones, and facilitate richer customer experiences through sophisticated chatbots. Such advances have a domino effect of increasing CSAT scores, boosting retention rates, reducing CACs, and ultimately improving profitability by as much as 95%.

Crafting immersive products through AR/VR

Customer retention is largely a function of how good a product is, and how effective it is in solving the customers’ pain points. In the face of increasing commodification, insurance companies that go the extra mile to make the buying process more immersive and engaging can gain a definite edge over competitors.

Globally, companies are flocking to implement AR/VR into their customer engagement strategies as it allows them to better several aspects of the customer journey in one fell swoop. Relationship building, product visualization, and highly personalized products are some of the benefits that AR/VR confers to its wielders.  

By honoring the customer sentiments of today and applying a slick AR/VR-powered veneer over its existing product layer, insurance companies can cater to a younger audience (Gen Z) by educating them about insurance products and tailoring digital delivery experiences. This could pay off in the long run by building a large customer base that could be retained and served for a much longer period.

The way forward

The Insurance industry is undergoing a shift of tectonic proportions as an older generation makes way for a new and younger one that has little to no perceptions about the industry. By investing in next-generation technologies such as AR/VR, firms can build new products to capture this new market and catapult themselves to leadership positions simply by way of keeping up with the times.

We have already seen how AR is a potential game-changer for the insurance industry. It is only a matter of time before it becomes commonplace.

Cancel

Knowledge thats worth delivered in your inbox

Loading More Posts ...