July, 2020

The 'New Normal' in Consumer Behavior

July 8th, 2020

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Table of Contents
01   State of AI Chatbots in Insurance 2020
02   Remarkable APAC Insurers response to COVID-19
03   Vernacular is a way through for Insurers in India
04   Recently launched COVID-19 Insurance Products in India
05   Telemedicine is the fastest growing use case for chatbots

State of AI Chatbots in Insurance 2020

Personal protection and health have emerged as fast growing concerns for consumers, who are now actively looking towards securing premium digital customer experiences and superior service levels but at reduced costs.

To combat disengagement, conversational experiences will be the key to providing proactive and friendly risk advice for consumers navigating the long recovery phase ahead. AI in Insurance will value at $36B by 2026. Chatbots will occupy 40% of overall deployment, predominantly within customer service roles.

Advanced AI chatbots are primarily used in claims settlement within APAC, while in more developed markets it is evenly split between pre-and post-purchase transactions.

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Remarkable APAC Insurers response to COVID-19

The current pandemic has shattered the business especially in the low-income APAC nations, where the market relies mainly on motor insurance. Insurance regulatory authorities and Governments are responding to protect policyholders’ interests and minimize the impact on the insurance industry. Here are some noteworthy initiatives: 

Country Response to COVID-19
  • Simplification of the claim process and claim proceedings online. 
  • Adjusted actuary rules for healthcare, accident and life insurance as well as annuity insurance, which will help lower premiums for such insurance by 3% to 5%. 
  • The Hainan Government subsidized the premium for businesses by 70%. The six-month plan will cover companies for up to $28.6 million in losses.
Hong Kong
  • In February, the Hong Kong Government decided to transfer HK$10,000 ($1,270) to all residents financially affected by the virus outbreak.
  • Expanded medical coverage and relaxed hospital restrictions.
  • Simplified and expedited claim procedures.
  • Bank Mandiri has offered insurance protection, totalling up to Rp1 trillion, for health workers. This insurance is provided through its subsidiary, AXA Mandiri Financial Services.
  • Extension of a grace period for premium payments.
  • Setting up an FSA (Financial Services Agency) hotline to provide advice on financial services for consumers.