Synthetic intelligence (AI) has the potential to revolutionize the group and voluntary advantages business, significantly throughout peak enterprise intervals when human sources are stretched extraordinarily skinny and with a rising variety of generational segments as staff who’ve completely different wants.
By streamlining quoting, optimizing sources, and automating guide duties, AI might help enhance group insurance coverage gross sales, increase profitability, and enhance the shopper expertise. In consequence, 74% of insurance coverage executives are planning to extend their investments in AI. Insurers that seize this chance early on could have a crucial benefit in assembly altering buyer wants, optimizing operations and driving progress.
How can group and voluntary advantages insurance coverage suppliers leverage AI to maximise gross sales and stay aggressive?
Personalize and Advocate Alternate Plan Designs with AI
Conventional new enterprise and renewal processes may be time-consuming and end in missed alternatives. It’s useful for gross sales and underwriting groups to have data-backed reference factors when designing plans for shoppers.
Utilizing predictive analytics, insurers can shortly generate alternate plan designs utilizing one in all their most useful belongings: information.
Right here’s the way it works: utilizing an AI advice engine, carriers can use their historic gross sales information to establish probably the most profitable bought plan designs for comparable shoppers. Suggestion engines, like these supplied by the Majesco World IQX Gross sales & Underwriting Workbench, will fetch information for comparable teams (dimension, geography, business) and recommend an alternate plan design that may be offered alongside the handpicked plan.
This acts as a strong benchmarking device whereas circumventing information limitations in group insurance coverage as a result of it makes use of the service’s information.AI can be educated to make strategies for upselling and cross-selling alternatives on elective worksite merchandise and enhance the plan member expertise whereas unlocking new income alternatives. Some elements it would think about to advocate merchandise could embrace age, gender, exercise stage, job position, and extra.
These instruments not solely assist insurers faucet useful current sources of income but additionally cut back the quote turnaround time, offering a greater buyer expertise.
Throughout high-load intervals, the quantity of quotes requiring underwriter assessment can decelerate processes resulting from an inefficient allocation of human sources.
Underwriters have various ranges of experience throughout completely different merchandise and quote complexities. Moreover, managers should take their current workload into consideration too. In consequence, quotes may be sitting for days and even weeks earlier than they are often circled.
AI can help underwriting managers in suggesting the simplest distribution of quotes throughout the underwriting group, bearing in mind a person underwriter’s present capability, experience, and efficiency historical past.
Moreover, AI can prioritize quotes with the best probability of closing based mostly on previous successes. By figuring out these useful resource efficiencies, insurers can write extra enterprise in much less time whereas bettering shut ratios.
Optimize Operations by Automating Guide Duties and Processing RFPs Quicker
The inflow of Requests for Proposal (RFPs) can produce undesirable friction and enhance quote turnaround time. To assemble a bunch advantages quote, gross sales and underwriting groups want to gather and course of a number of key items of data from completely different sources. These could embrace previous plan booklets, coverage summaries, worker census recordsdata, prior claims expertise, and common consumer data (business, dimension, location).
Right here’s the issue – these information typically come in several codecs, and they’re typically not delivered within the type of structured information. In different phrases, it can’t be mechanically ingested by digital instruments. In consequence, underwriting groups lose numerous hours rekeying data into their inner methods.
That is the place AI is available in.
AI methods can extract data from dealer emails, attachments, and RFP supply recordsdata utilizing strategies like Optical Character Recognition (OCR) to establish and course of unstructured information trapped in PDFs, pictures, the “again of a serviette”, and different codecs.
Pure Language Processing (NLP) can be utilized to coach an AI system to learn an RFP booklet, be taught carrier-specific phrases and abbreviations, and generate a quote based mostly on the knowledge detected throughout the supply doc. These automated processes not solely save time but additionally cut back errors, offering an enhanced buyer expertise.
As soon as the uncooked information has been captured, it may be transformed to structured information within the insurance coverage firm’s format and despatched on to their quoting portal or underwriting workbench.
AI leveraged on this approach can drastically minimize the time it takes to assemble a bunch advantages quote, contribute to improved shut ratios, and fosters higher relationships together with your distribution companions.
Leverage AI Chatbots to Drive New Income Alternatives
Gone are the times of clunky, irritating chatbots that pop up while you least need them. The discharge of ChatGPT within the fall of 2022 confirmed the true promise of generative AI.
Through the use of AI-powered chatbots, group insurers can present quick help and solutions to buyer queries, offering a greater buyer expertise. These instruments may be educated to be taught an insurance coverage firm’s merchandise, insurance policies, and common “language”, serving to prospects absolutely perceive their advantages plan.
Chatbots can be used to establish potential upselling and cross-selling alternatives for voluntary advantages, bettering total gross sales and profitability. By integrating with well being information suppliers (e.g., Fitbit) and behavioral information instruments, this performance can turn into much more customized, and tailor-made to the person’s distinctive scenario and objectives.
Whereas brokers and brokers can’t provide customized recommendation to hundreds of particular person insureds with various wants and ranges of information, expertise can. Digital assistants and chatbots can present useful steering to plan members, answering questions, guiding them by way of the enrollment course of, and recommending new services based mostly on their well being and demographic data.
One of the best digital assistants are proactive, not reactive, offering useful nudges to customers on the proper time.
For instance, Solar Life’s AI-enabled “digital coach,” Ella, encourages plan members to take motion on vital deadlines, cost-savings, and product choices. Ella’s proactive nudges resulted in practically two million extra interactions from plan members early within the pandemic from January to September 2020.
Solar Life’s funding in digital teaching paid off. Because of Ella’s interventions on the proper time to the best consumer, the corporate skilled an 83% enhance in extra protection bought in comparison with the earlier yr. This success demonstrates the facility of digital assistants in offering customized schooling and steering to insurance coverage prospects.
Embrace the Potential
AI is poised to revolutionize the group insurance coverage business, offering important advantages to each insurers and prospects. By streamlining quoting, optimizing sources, automating guide duties, and bettering customer support, insurers can enhance group insurance coverage gross sales, enhance profitability, and supply a greater buyer expertise.
The production-proven Majesco World IQX Gross sales & Underwriting Workbench has been adopted by 20+ main carriers throughout North America. To take your group and voluntary advantages enterprise to the following stage, the Majesco World IQX Gross sales & Underwriting Workbench provides a set of AI-powered instruments for worker advantages carriers. These embrace AI-assisted census file scrubbing, a predictive analytics advice engine to assist unlock optimum plan designs, AI-driven quote assignments, and extra. And take a look at this webinar[DG1] with Bryan Strang from Canada Life on the enterprise and buyer worth of AI-driven gross sales and underwriting workbench.
At this time’s weblog is co-authored by Denise Garth, Chief Technique Officer at Majesco, and Mike de Waal, SVP Group Insurance coverage, Majesco.