Solving the customer relevance riddle. How AI-derived insights can help insurers deliver what customers really want

Points to discuss

The transition to data-driven relevance

With non-insurers intruding on the insurance value sector, carriers must focus on consumer relevance going forward—and data is the cornerstone of relevance.

Developing a cognitive mentality

Companies that thrive in acquiring and harvesting data for insights are known as data leaders. They become leaders by leveraging people, processes, and technology to ensure that data is used effectively throughout the organization.

Recommendations based on their usefulness

Re-define your company: Become a proactive life companion for your clients instead of a reactive risk adjuster. Accept the change that comes with being a Cognitive Insurer: Accept change think like a start-up.

The major complication

• For a long time, the insurance sector believed it was immune to the impacts of these developments.
• The biggest driver influencing the insurance industry, according to CEOs, is shifting market dynamics.
• According to a new Gartner research, the insurance sector must adapt and innovate. Insurers must be more adaptable and open-minded in their offerings to clients.
• Insurtechs profit from inefficiencies in the traditional insurance industry.
•  Innovative technology solutions are being used by insurtech businesses to cherry-pick attractive sections of the value chain.
• Car2go, a Daimler carsharing program, eliminates the need to purchase both a car and insurance.
• Insurers must rethink their value offerings and recast their roles in a changing market. According to Dr. David Waddell, insurance companies can assist their consumers and themselves achieve better outcomes.
•  WeChat Pay might pose a challenge to established players like PayPal.

Beyond the state of inertia

• Customers have told us that their connection with their insurance is unsatisfactory. 
• Only 56% of consumers polled were happy with their insurance provider's personal attention, and only 56% trusted their provider.
• Non-traditional actors in the insurance sector should be avoided by insurers. British Gas may provide residual risk coverage in a white label space that could eventually be replaced. According to the experts, insurance firms must discover strategies to remain relevant to their clients.
• They claim that data is the key to relevancy. Customers' experiences must be tracked in real-time by insurers.
• Insurers still consider decision-making to be an art based on intuition and experience rather than a rigorous science-based on facts. 
• According to the report, insurers who realize the value of data are beginning to develop strategies to harness it.
• Data management may aid decision-making and assist customers and organizations achieve better results.
• Insurers must change their mindset from "respond and pay" to "predict and avoid." 
• To increase customer happiness, data may be used at each phase of the customer experience.
•  A system that combines weather, drone, and sensor data with human specialists, for example, might send out safety alerts.

Prioritize your thoughts over your data.

• In order to evaluate three forms of data holistically, insurers need to consider three categories of data.
• Effective data governance, as well as the proper mentality, are required for successful data usage.
• Customers' experiences, governance, and organizational behaviors must all be prioritized by insurers.
• According to a recent study, insurers are more likely to be data leaders than ordinary performers.
• As more carriers embrace artificial intelligence (AI) and other new technologies, we expect the gap to increase.
•  Insurance businesses may enhance their performance by utilizing the power of data.

The Cognitive Insurer

• According to IDC's Cognitive Insurer, the Datasphere will grow to 175 zettabytes by 2025, more than five times its current size.
•  Insurers can employ AI to sort through the massive amounts of unstructured data around people, assets, and context.
• The great majority of insurers want to boost their bottom line by increasing client satisfaction. Aside from top-line gains and apparent efficiency improvements in automating analytical activities, being a Cognitive Insurer can lead to a slew of other advantages:
• Enhancement of abilities
• Availability of skills
• Accountability
• Impartiality
• Acceptance

Cognitive Insurer is a new type of insurance firm that places a premium on data-driven culture and client relevance. To succeed, it takes organizational flexibility, ecosystem relationships, and a healthy dose of creativity. Here's how you can turn your company into a Cognitive Insurer.

Lay the groundwork

• Develop a data-driven attitude.
• Aim to be life partners.
• Make an investment in relevance

Act like a conductor and think like a startup.

• Begin small and rapidly expand.
• Return the emphasis to the data
• Choose your mates carefully

Don't be scared to try new things.

• Be prepared for the upheaval that understanding will bring.
• Execution should be quick.
• Take pride in your ability to innovate.