Share on facebook
Share on linkedin
Share on twitter
Share on facebook
Share on linkedin
Share on twitter

4 AI Applications That Are Transforming the Insurance Industry Now

The Asia Pacific (APAC) region is experiencing an insurance boom, as well as significant digital disruption in this sector, according to a recent report by Bain & Company. As competition grows and new players enter the market, insurance companies are implementing artificial intelligence (AI) powered tools to stay ahead. 

Asia Pacific currently has the fastest growing insurance market in the world. This boom is linked to two main factors: an expanding middle class and the removal of barriers to entry in markets such as China and India.

At the same time, digital disruption has created a situation where customers expect to access insurance services digitally, can easily compare policies online, and will receive more personalized services and products.

To get ahead, insurers are using advanced analytics, machine learning and other AI-driven tools to compete with agile new players and elevate the customer experience. According to a study by PwC, more than 80 percent of insurance CEOs said AI was already a part of their business model or would be within the next three years.

Here are four major areas where insurers can implement AI to improve customer engagement, combat fraud and streamline business processes.


1. Fraud Detection & Credit Analysis

The General Insurance Association of Singapore estimates that around one in five claims the industry receives are either false or inflated, costing the industry around S$140 million (US$101 million) a year.

To combat fraud, insurers are using AI-driven predictive analytics software to process thousands of claims each month. By analyzing the claims in milliseconds based on set rules and indicators, AI is able to identify which may not be legitimate, reducing the number of fraudulent claims slipping through. These indicators include things such as frequency of claims, past behavior and credit score.

By leveraging machine learning, Chinese Insurer Ping An saved itself US$302 million from fraudulent claims in one year. It also achieved a 57 percent increase in accuracy in fraud detection from the previous year.


2. Customer Profiling & Segmentation

By automating and applying cognitive learning to their data collection processes, forward-thinking insurance companies, including AIA Singapore, are also advancing their customer profiling capabilities.

Equipped with the power to unify and derive insights from their internal and external customer data, insurers are able to build a more comprehensive picture of their customers, such as their insurance needs, interests and life stages, for more effective targeting. Insurers can segment their audience based on these attributes, and use deep learning to predict the conversion rate of these segments. With such insight, insurers can then decide the relevant product recommendations for each customer segment.   

Insurance companies are also enhancing customer profiling with AI-enabled voice and facial recognition, which helps create biological customer profiles for fast and accurate verification, as well as the tracking of behaviors and attributes.


3. Product & Policy Design

Another area insurance companies are using AI is to inform their product and policy design,

By streamlining and speeding up the collection and analysis of massive data from owned channels, third-party sources and agents, insurers can use machine learning to discover customer trends and interests in real time. These insights are then being used to develop and improve product and policy design.

Chinese online-only insurance company, ZhongAn, is a company that continually releases innovative products and policies, many of which are developed with the help of advanced AI techniques such as machine learning and image recognition. For example, they came up with niche policies to insure against cracked mobile screens and shipping return products.


4. Underwriting & Claims Assessment

The process of underwriting is often viewed as an art based on personal judgment, but AI technologies have also worked their way into this area of insurance, making the process increasingly scientific.

Insurers are now using advanced analytics and machine learning, as well as additional sources such as satellites and the Internet of Things devices, to help get a more holistic view of risk, as well as to determine which submissions to review in the first place.

Japanese insurance firm Fukuoka Mutual, for instance, has been using a cognitive machine learning based system to scan medical records and data on surgeries and hospital stays to calculate payout. Meanwhile, Indian company ICICI Lombard has created an AI-based cashless claims settlement process, which can be completed in just a minute.

From fraud detection to underwriting, AI technologies are reimagining every facet of APAC’s booming insurance industry. By reducing the risks and streamlining processes, it can help companies drive efficiencies and deliver more personalized products and services – the key to future success.


* Do you also want to know more about how AI can help financial services companies analyze data, make precise predictions and offer insights that enable them to create a more effective marketing strategy and campaigns? Download our latest white paper ‘Predict Customer Behavior in Financial Services: How Artificial Intelligence and Data Science Enable Better Marketing and Higher ROI’ now. 


Let us know the marketing challenges that you’re facing, and how you want to improve your marketing strategy.


Don’t Stop at the Checkout: How to Nail Post-Purchase Customer Engagement

You have made a sale, with your marketing efforts succeeding in converting a casual browser into a paying customer. Congratulations! Now it is time to relax and enjoy the fruits of your labor, right? Not quite. Customer engagement should not stop after the checkout. Instead, focus on how to retain your existing customers and increase their loyalty to your brand. These are both vital for your company’s survival as 40 percent of the average e-commerce store’s revenues come from repeat business. Here are five ways to get your post-purchase engagement right.   1. Shipping and Delivery E-commerce can sometimes seem a little impersonal. There are no shop assistants to ask (a bot isn’t quite the same), no store to walk around, no products to see and feel in person until the order is delivered. So, the shipping and delivery is your chance to make a personal connection with your customers. Of course it should be as quick and efficient as possible, and you should keep your customers up to date on when their package(s) will arrive. Moreover, you can add a little extra touch to make them feel that you value their custom. Fashion retailer Boden sometimes adds extras like

Technical Insights: Basic C++ 11/14 for Python Programmers

Our new blog post features a short list of some common python programming patterns and their C++ equivalents. This can help programmers learn C++ in a more efficient way if he or she already knows Python. Leave us a comment below and let us know what you’d like to see covered in our future posts! █ Read More Technical Insights: Introduction to GraphQL| █ Join Us Our current openings| Basic C++ 11/14 for Python Programmers from Appier

How to Elevate Your Social and Search Advertising for App Install

With mobile use still growing globally, a smartphone application is a great way to drive engagement. But how do you convince customers to download it? One of the best ways is by leveraging predictive segmentation and keyword targeting powered by artificial intelligence (AI) on paid search and social media platforms. Mobile apps are more popular than ever, and they are not going away anytime soon. According to App Annie, annual mobile app downloads are expected to reach 258 billion in 2022, up from 205 billion in 2018. Due to the impact of COVID-19, consumer spending in apps hit a record high of US$27 billion in the second quarter of 2020. With app revenue following a similar trajectory, it is no wonder that global app install ad spend will more than double in the coming years, from US$57.8 billion in 2019 to US$118 billion by 2022, according to AppsFlyer.   The Key Drivers of Increasing App Install Ad Spend One of the biggest drivers behind this growth is competition. Brands are fighting to deliver personalized customer engagement and increase conversions, and a mobile app is one of the best channels to achieve that. The latest data from App Annie shows that


Let us know how we can help improve your marketing strategy