How AI and ML are Improving the Insurance Industry
Posted on: August 10, 2020 | By: Guy Logan | Microsoft Dynamics CRM
As technology continues to change the way we work, insurance is one of the many industries that has seen a massive impact from these new influxes of technology. The insurance industry as a whole relies on the consumption of large amounts of data. Through data from historical data resources or even FitBit devices, insurance companies are able to manage and assign risk, determine best policies and other crucial decisions regarding basic operation. But processing and managing all of this data can be extremely overwhelming, leading to missed opportunities and increased costs.
That’s when advanced technology can step in to meet your Customer Relationship Management (CRM) needs. In this blog post, we’ll be discussing how Artificial Intelligence (AI) and Machine Learning (ML) can be used to improve CRM systems for the insurance industry.
Capturing Data Efficiently with AI and ML
Even if your insurance company leans toward more traditional operations, other traditional insurers are using multiple approaches for efficient use of CRM systems. Younger, tech-savvy customers are less likely to seek out traditional storefront agents and with the social distancing guidelines of the COVID-19 pandemic in place, people are even less likely to come to stores in-person. That means that they’re going to search for their insurance needs online.
The first point of data ingestion is at the policy level when data is captured directly from the customer. This data is crucial to understanding the future of your relationship with that customer and how to move forward with their case. Artificial intelligence and machine learning are capable of processing data and identifying outliers in real-time. When these technologies are incorporated into your CRM system, it can become a more accurate and efficient way to capture customer data while providing real-time notification of errors in any key data fields.
The Three Most Common Approaches
There are three common approaches that are utilized by insurance companies looking to find the best combination of technological tools and human interaction. With the increase of online traffic and revenue opportunities, CRM systems are using AI and ML for many other needs as well. AI and ML can replace all direct customer interaction with an automated system of bots. These bots are powered by technology that can utilize speech recognition and text processing, meaning they can imitate insurance agents to help with any customer needs.
Many insurance companies are also using bots as a first approach before using human backup for any outliers and further support as needed. This provides quick management of small issues or questions, and the human interaction needed for more complicated cases. This can lead to a more efficient management system that cuts costs and wasted time.
And for those who are looking to combine AI and ML with a more traditional approach, a human first with an AI-driven support system can be the best for your CRM system. This approach can help direct and guide your customers with traditional agents who are able to tap into their technological resources as well. This can create a system that delivers better and more complete service to your customers.
All three methods are used to capture accurate and complete data quickly and efficiently while avoiding any gaps or inconsistencies. With these methods, customers can be directed to the appropriate products and services, leading to increased revenue and opportunities for your insurance company.
Next Steps
It’s clear that using the power of technology to improve your CRM system can help your insurance company gain the competitive edge it needs. Logan Consulting, your Chicago-based firm, has helped numerous clients across the country tap into their full potential through technology. Talk to us today to learn more about how you can start using Microsoft Dynamics CRM to manage customers efficiently.