Published on October 29, 2023, 8:56 pm
The impact of the COVID-19 crisis has been felt across various sectors, including the insurance industry. However, insurers have responded swiftly to the challenges posed by the pandemic. According to Abhishek Sharma, lead for Big Data Transformation at AIA Group, the insurance industry in Asia-Pacific has been using data and AI to enhance customer experiences, streamline processes, and improve efficiency.
Traditionally, the insurance industry had limited digital touchpoints with customers. But advancements in AI and digitalization have raised customer expectations for personalized and seamless services. To meet these expectations, AIA is embracing digitalization and offering health and wellness solutions that help customers lead healthier lives. The goal is to provide a similar level of service as digital-native organizations.
AI is being leveraged as a business driver at AIA. The company’s corporate strategy, Ascend200, includes a technology uplift called the Technology Digital Analytics (TDA) initiative. Through TDA, AIA focuses on analytics to engage customers with personalized information. For instance, 80% of AIA’s agents in Hong Kong were onboarded using an AI-based recruitment tool.
Swiss Re Institute predicts a return to premium growth in the insurance industry supported by easing inflation, market hardening in property and casualty lines, and stronger demand for life insurance.
According to Deloitte, several technological advances like AI are expected to reshape the insurance industry. Furthermore, Gartner suggests that improving customer experience and operational excellence are driving most insurance digitalization initiatives this year.
At AIA, key business metrics such as straight-through processing rates, customer satisfaction scores (CSAT), and lead conversion rates are used to measure the impact of data and AI solutions. These metrics ensure that data-driven initiatives drive business results.
Sharma advises organizations looking to modernize their data strategy with three key points:
1. Don’t wait for a perfect data platform before engaging with business stakeholders.
2. Define key performance indicators (KPIs) to measure the impact of data-driven solutions.
3. Start as soon as possible, as the AI and analytics space is rapidly evolving.
By implementing these strategies, organizations can test, learn, and improve their data-driven models over time.
Overall, AIA’s focus on data and AI aims to enhance customer and agent experiences. Through faster onboarding processes, simplified underwriting, digital engagement models, and quick claim reimbursements, data and AI have shown their transformative potential in the insurance industry.