Top 3 tech Innovations behind Life Insurance and Pensions Industry

Life insurance and Pension sector have a huge potential to grow as it is one of the important pillars for financial protection of life and funds stage goals. But why is technology so important? By 2020, Life and Pension executives expect that 34% of the consumers will turn to social networks to obtain advice and […]

Top 3 tech Innovations behind Life Insurance and Pensions Industry

Life insurance and Pension sector have a huge potential to grow as it is one of the important pillars for financial protection of life and funds stage goals.
But why is technology so important? By 2020, Life and Pension executives expect that 34% of the consumers will turn to social networks to obtain advice and share information, which prolong with another research that says customers will be managing 85% of their relationship with an enterprise with no contact with a human.

1. Artificial Intelligence (AI)

 

Trending technologies as AI, natural language classification, machine learning, computer vision can speed up big data processing and analysis and help in making less-risk decisions essential for the insurer’s profit and position on the market.

The question here is how can AI help insurance companies?Here are several things that are worth to be mentioned:

  • First, AI can increase customers engagement and segmentation and provide personalized offers based on personal features. Valuable insights about a customer are gained in the application process. This is where machine learning is used to compare a person’s health history, lifestyle choices, occupations, and their subsequent risk to similar life insurance buyers. It also helps in reducing the costs through smart automatization (robotic process automation).
  • Second, the better pricing and risk assessment with AI is analyzing more granular data that will make some people uninsurable ( too risky to be fairly priced and covered) as well as to turn back some previously uninsurable people into insurable customers again.

2. IoT (Internet of Things)

 

 

IoT refers to a network of physical objects which contain embedded technology to gather information about specific objects with the ability to transmit data.

What are the benefits from using IoT?

  • Better Risk Management – In life and health insurance, IoT can be used by insurers to enable their customers to stay connected and to receive timely care so as to avert a crisis. A good example can be a connected ecosystem that ensure the safety of elderly customers when they stay alone.
  • Real time data – the collection of real-time data enables insurers to create a rich data pool that can be used to ensure a competitive advantage on the market.
  • Better customer relationship – IoT enables insurers to explore a new model of insurance based on proactive risk reduction, beneficial for both customers and insurers.

3. Chatbots

 

 

As a part of insurtech revolution, chatbots are playing a significant role in the insurance industry. Chatbots are more likely to replace human agents in a way that will bring customer experience to a higher level.

What are the advantages of Chatbots use?

  • Chatbots save time – assist existing customers and it also saves up time for customer support staff. Customers can also choose the most suitable social media platform they are comfortable with. Also, the virtual assistant allows communication with its broker partners, by asking questions and help with tasks as downloading or uploading information.
  • Chatbots plan the future – they act as a financial guide to help customers choose the most suitable life insurance as well as retirement plans and solutions, Chatbots can also predict the need of life insurance, based on gathered individual information.

 

What are the challenges and trends that shape the life and pension industry?
How to reboot your business plans to prepare for market transformation?
What is the master plan that can increase your competition?
How to attract and retain customers?
What are the risks that embrace your business?
Are you disruptor or disrupted?
What the future is holding and how to be ready for it?

Find all the answers at Life Insurance and Pensions Conference, that will be held in November 2017.

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