From Quote to Customer the Smart Way

20 July, 2017

Posted by Bianca Huttner

Welcome to our blog series on the Insurance industry, Artificial Intelligence and Machine Learning. This series will discuss the challenges and opportunities faced by Insurance providers and how Artificial Intelligence (AI) and Machine Learning can make processes faster, more effective and more accurate than current predictive models, ultimately increasing profitability for Insurance providers.

Welcome to our blog series on the Insurance industry, Artificial Intelligence and Machine Learning. This series will discuss the challenges and opportunities faced by Insurance providers and how Artificial Intelligence (AI) and Machine Learning can make processes faster, more effective and more accurate than current predictive models, ultimately increasing profitability for Insurance providers.

What is Machine Learning and how does it help Insurance providers?

To kick start the series, we will look at quote conversion: turning a quote enquiry into a valued and satisfied customer. And taking this one step further, turning the right quote enquiries into happy customers. For any insurance provider in the UK, a key priority is to maximise efficiency and profits by making informed decisions on quote conversions, based on valuable data. Artificial Intelligence and Machine Learning allows insurers to develop a more intelligent approach towards the engagement of potential customers.

Competition between insurance providers

Financial services companies are finding innovative methods, using the latest technologies to profile customers and ensure that they deliver the best customer experience journey. The competition of insurance markets quotes and the go-to dependency in comparison sites has meant that premium levels remain intensely competitive. Premium is only one reason that persuades a customer to choose one provider over another; customer service, T&C small print, underwriting process, brand awareness, reviews and recommendations all factor during the quote conversion process.

Valued data

Artificial Intelligence and Machine Learning increases an insurance provider’s profitability by devising algorithms to make faster and more accurate predictions on data for the underwriting process. It uses AI to identify patterns through building models from sample inputs that enhances current processes. Insurers are able to target specific leads that best fit the quoting criteria, which improves conversion rates.

Improving customer journeys

Machine Learning can enhance current risk-based pricing and margin models, offering quicker speed of service alongside greater accuracy. Additionally, it can be used to improve performance in existing quote conversion processes by accounting for multiple factors in the customer journey, including other offers and the multitude of insurance a customer holds.

This data is valuable for insurance companies to profile their customer and offer terms suitable to their requirements and circumstances. Machine Learning includes further capabilities to analyse structured and unstructured data, allowing insight into the likelihood of purchase of a policy based on these multitude of factors. Through these criteria, insurers can guarantee that more focus is given to substantial positive leads.

Current predictive models can ‘stress test’ price levels across an insurer’s market offer. In comparison, Machine Learning can predict pressure points, including premium, that can be adjusted to help prospects at an individual level. Customer journeys can be monitored to produce detailed profiles, filtering specific leads based on a potential customer’s behaviour, ensuring that policies are tailored more accurately than ever before.

Empowering insurers

Machine Learning uses predictive models to allow insurers to tailor the customer journey to maximise success. It gives more power for insurers to adjust the offer for each customer during quote conversions, leading to increased profitability and performance for providers.

To find out more about the predictive platform and how it can help insurance businesses see faster, accurate and increased quote conversions.