Table of Contents
01 The Insurance Monthly Roundup
02 Technology Trends in 2023
03 Unlocking Delightful Experiences in Insurance
04 Creating Value for Gen Z with AI
05 State of Extended Reality in an Experience Economy
The Insurance Monthly Roundup
- Max Life teamed up with Ujjivan Small Bank to provide life insurance options to the lenders’ customers and strengthen its bancassurance business at Max Life.
Through this alliance, more than 73 lakh customers of Ujjivan SFB will be able to choose from a variety of savings, protection, retirement, and group life insurance policies.
- Turtlefin, a B2B vertical of Turtlemint, acquired SaaS startup Last Decimal.
With the inclusion of Last Decimal’s existing clients, the acquisition will aid Turtlefin in growing its bancassurance operation.
- InsuranceDekho raised $150 million -the most extensive series A round ever for an Indian insurtech firm.
The additional capital will be utilized to develop scalable Insurtech solutions in data analytics, AI, last-mile servicing, and claims management. The company also plans to onboard over 2 lakh insurance advisors on its platform by the end of 2023.
- Kita, a carbon credit insurance expert based in London, secured £4 million in funding.
The firm plans to leverage insurtech solutions to support carbon removal initiatives and introduce its first product, the Carbon Purchase Protection Cover.
- Goose, the Insurance Super-App, garnered $4 Million in Series A Funding Round.
The Vancouver-based startup will deploy the capital to accelerate the adoption of its insurance super app for customers in Canada and the US through education and awareness campaigns.
Open Finance: Reality or Hype?
Read the full blog, here.
Technology Trends in 2023
In the past couple of years, we have witnessed revolutionary technological breakthroughs. In a post-pandemic world, anything is possible. Technology will continue to influence how we live and work in 2023. As more products and services include artificial intelligence (AI) and machine learning (ML), they become smarter and more capable of carrying out jobs that were previously solely performed by humans.
Here are some trends that will shape 2023:
- Web3/Blockchain: The blockchain ledger is being utilized in various contexts, including the protection of patient data, accelerating transaction times, reducing digital fraud, and more. By 2030, according to a report by Statista, the market is projected to grow by a CAGR of 82.8% touching $1,235.71 billion.
- Asset Tokenization: BFSI industry is anticipated to hold the most significant market share for tokenization in 2023. The expansion of this market is attributed to the rise in payment security solutions adoption and data breaches in the BFSI industry.
- Web AR: Some benefits of using Augmented Reality in business are boosting sales, minimizing returns, increasing customer engagement, collecting data on customer preferences, and providing a contactless experience. Users can now virtually try clothes and jewelry before purchasing on websites like Candere and Hazoorilal with the help of Web AR. Beauty and wellness platforms like Nykaa and Purplle let one try on lipstick shades digitally before purchasing them. Leading eCommerce portal for eyewear Lenskart allows customers to try on different frames virtually to choose the right one. Web AR is also used in education, taking the learning process to another level. It can be used to understand complex study models. For eg: Medical students can study human anatomy and even train for surgery on it.
Read the blog, here.
Unlocking Delightful Experiences in Insurance
The shock of depersonalization, coupled with rising expectations of convenience vis-a-vis mobile applications means that the only candidate for bringing about differentiation is customer experience (CX). CX can be improved in many ways. Let’s look at how companies are using technology to inspire loyalty among their customers:
- Mobile-First User Experience: Smartphones have become commoditized to the point where most online interactions, especially among the younger generation, are mediated through mobile browsers. In addition, insurance companies will need to revamp their digital strategies to ensure they are mobile-focused.
- Smart Automation: Insurance involves a lot of paperwork, signatures, and general monotony that stresses both customers and employees. Leveraging rudimentary AI-powered chatbots and automation tools would allow employees to focus on more meaningful tasks and customers to resolve their queries without having to wait for a service agent to pick up their call.
Read the blog here.
Creating Value for Gen Z with AI
GenZ places importance on customer experience in various decision-making areas and their willingness to pay a premium for a better experience. In fact, CX is the deciding factor in the buying decision for Gen Z. Leveraging technologies such as AI, computer vision, predictive analytics, NLP, and OCR across the insurance life cycle to create the future customer experience for Gen Z.
Stage 1: Consider and Evaluate
Data plays a key role in risk evaluation, the decision-making process, and improving customer experience. Predictive behavioral analytics helps in understanding the identifying the consumer pattern and the intent of those behaviors. Forecasting customer expectations based on their historical pattern without the consumer articulating their need explicitly can help insurers directly improve customer satisfaction and boost revenue per customer.
Stage 2: Buy and Experience
Speed is what the new customer segment wants. Insurers will need to leverage advanced AI and workflow management to improve the onboarding experience for the ‘want-it-now’ customer category.
Stage 3: Improving underwriting through AI-Based Dynamic and Smart Decision making in real-time.
Artivatic has introduced a next-gen smart underwriting cloud–AUSIS which helps to connect, and integrate existing or third-party applications and APIs for the end-to-end process.
Stage 4: Payment & Claims Management
Fraud Detection with AI and ML models.
Anadolu Sigorta recently tested a predictive fraud detection system. This detection engine uses automated business rules, self-learning models, predictive analytics, text mining, image screening, device identification, and network analysis that deliver immediate, actionable insights. A.S. attributed over $5.7 million in savings from the AI system.
State of Extended Reality in an Experience Economy
Today’s customers are digitally savvy, demanding, and value-driven. They have witnessed a pandemic for more than 2 years now, and are clamoring for an enriched experience beyond the 2D outlay a laptop or mobile can provide. With this demand for improved CX and the rapidly evolving digital infrastructure, extended reality (XR) has gained tremendous interest from technology and business leaders in equal measures.
According to a study conducted by Poplar, globally, 75% of consumers expect their retailers to now offer an AR experience. Further, the rise of Metaverse has been augmented by the rise in Web 3.0 applications like NFTs and Cryptocurrency. While the maturity rates are not the same in all industries, some show greater inclination than others in their quick adoption. Providing personalized assistance can go a long way in building long-lasting relationships with customers. Whether with guided product tutorials through a VR environment, previewing products through an AR app before purchase, or remote assistance through mixed reality. Such digital touchpoints can help improve customer satisfaction.
As per IBM’s report, the Financial Services industry is expected to have the highest spending in XR for improved customer engagement. The market is estimated to grow at a CAGR of 133.9% in the next decade, with a keen interest in higher brand recall through XR.
Industry leaders need to tap into the benefits and differentiation that having an AR experience can provide. A reluctance to do this would invite the risk of missing the bus to disrupt new entrants more attuned to consumer needs. With customer loyalty waning away faster than ever before, companies can no longer afford to be reactive in their offerings.
Read the full report, here.
Business cognizance for the new-age digital insurers