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Integratz 3 minute read

How to Use AI for Insurance Customer Retention

For any company, customer "churn" or customer turnover is normal. There are many reasons why a customer may want to leave a company and move on to their competition. Lack of innovation can be one of the underlying reasons your insurance customers move on to competitors who focus on new and improved ways to engage with them. They may not tell you that directly, but if they can get insurance in a way that’s easier than your process, it’s likely they’ll gravitate there.

Artificial intelligence (AI) makes it possible to improve the customer experience and offer a more cohesive and streamlined approach to insurance company customer service.What is Digital Transformation for Insurance Companies? 

Top Three Areas Where AI Can be Used to Reduce Insurance Customer Turnover Are:

  1. Making every interaction an experience tailored to the customer
  2. Providing immediate responses
  3. Predicting when customers are showing signs of leaving your company

Identifying and resolving these core issues will ensure that you hold on to your customers who are willing to refer you to their friends, family – and sometimes – strangers through online reviews.  

1. Creating a Tailored Experience for Every Insurance Customer

When implemented correctly, AI for insurance can make the customer feel important from the moment they consider coming on board with your company. If this doesn’t go well, you’re not likely to capture that lead and keep them as a customer.  AI is used for personalizing the interactions a customer has with your company based on their past buying history, what they may be looking for, and their communication preferences. 

Digital Insurance Company Onboarding

Your insurance company should try to maximize the effectiveness of the limited interactions you get to have with customers, starting with the digital onboarding of insurance customers. Walking them through a very simple, easy process for sign up, payment, and suggesting products they may need, can help new customers feel like you really understand them. AI can be used to direct the new customer from step to step until the process is complete.

Custom Dashboards & Communication Preferences

AI for insurance can also be used to present each customer with their own dashboard including data that’s important to them. This can, of course, include cross-selling opportunities based on each customer’s profile.

Sometimes you need to give customers a nudge to get them to go out and look at their dashboards, renew policies, add new products, etc. Using AI for insurance sales and customer service, you can have personalized notifications sent as needed, based on their current and predicted behaviors. 

Better Experiences During a Claim

AI can be used to automatically notify customers who need information that you can provide. For example, customers that had an auto accident can be delivered information they need when they need it, such as the star ratings for nearby, insurance company-approved, body shops.

What is Digital Transformation for Insurance Companies?

2. Provide Access to Answers and Important Information Immediately

For the most part, customers today prefer a self-service experience. No one wants to wait on hold if they can find the answer to their questions online or in their customer app. This is especially important when there has been a large-scale event such as a wildfire, flood, or tornado in the area and you do not have the call center staff to answer the sudden influx of questions. Creating an excellent experience during times of stress will be something customers remember for years to come.

Using a chatbot that uses artificial intelligence, insurance companies can offer a communication channel that is instant, available all the time, and helpful for each customer based on what they need. A chatbot is programmed to work independently from a human operator, but can be allowed to hand off to a live representative if needed. You won’t need to add a lot of additional customer service reps, even during peak periods, if the chatbot is programmed to truly address your customers’ issues and common questions.

Microsoft Power Virtual Agent is an example of an AI-powered chatbot that can be set up for use 24/7, giving answers to many of the questions your customers typically ask. The customer's digital record can be tied directly into the answers from your chatbot and your live customer service staff. 

3. Predicting When Insurance Customers May be Looking to Leave

There is a lot of effort put into retaining insurance customers, usually in the form of an entire department of people.

According to Forbes, 33% of all U.S. consumers say they'll consider switching companies after a single poor customer service experience and that an astounding 85% of customer churn due to poor service is preventable. Forbes encourages the assessment of customer churn indicators during and immediately after customer service interactions.

Use artificial intelligence for insurance customer retention to identify patterns and predict actions that you can preempt.

Data is evaluated and patterns interpreted based on customers who have previously left you. Comparing this data from various touchpoints to analyze a customer's likelihood of leaving will give you a key advantage over your competitors and allow you to retain a higher percentage of your overall customer base as new customers sign on with you and fewer customers leave. 

Once you’ve identified the patterns, creating a plan for each one, including how you can personalize your outreach, will help curb some of these behaviors. 

Insurance AI tools are put in place to identify customers who are at high risk of leaving. Microsoft has an Azure AI platform that includes Azure Machine Learning, Azure Synaps analytics, and more. Each of these products aid customer retention by helping predict customer churn using real-time analytics. You can even build a dashboard with PowerBI to better identify high-risk customers. This solution can be customized for your company to better understand your unique patterns. 

What is Digital Transformation for Insurance Companies?

Ready to Use Artificial Intelligence to Retain More Insurance Company Customers? 

Choosing the right AI tools for insurance is important for you to start down the right path, allowing for the progression of how you use insurance AI over time. Reach out for a free consultation with Integratz to discuss AI tools that may work well for your insurance company.

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Published by Integratz