Team The Wave-Riders

Jayant Sharma Saurabh Singh SL Narayan

Faculty of Management Studies
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

Case Overview

 Deteriorating of traditional profit centres, changing competitor landscape, technological innovations are asking for a new look at the Insurance Sector. However, traditional
Insurance players have been slow to react to the new demands and possibilities of the digital age. Insurance Industry is seen as one of the least innovative industries for customer
experience, product management and operational efficacy.

Approach Used

Understanding the need gap,

In-depth discussions with
Insurance Sector’s Employees,
employees and other stakeholders
Primary survey to understand Analyzing opportunities for AI to
identifying potential opportunities,
customer’s pain points in the have an influence over Insurance
mapping pain points to Insurance
Insurance Sector Sector Value Chain.
Sector Value Chain

Primary Research Secondary Research

Survey Objective
25 Personal interview of people aged 19-55 year old
Use Case on Successful AI
To understand Consumer Perception about insurance sector. Getting implementations across Channels.
Response to survey conducted online
102 valuable feedback from them based on their needs. Identifying the -Manufacturing industry
biggest pain points experienced by customers . -Pharmaceutical, healthcare Industry
In-depth discussion with Insurance
13 Sector Employees
Source: Euro-monitor,
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

A total of 127 responses were collected from respondents

PART A: Survey across Delhi, Noida and Gurgaon

Policies in the market satisfy your needs in an effective manner Do you feel premium should be dependent on According to you policies’ cost vs the risk they
your lifestyle? cover, policies are-?
2%
Strongly
Disagree Yes 12% Expensive
18% Agree
19%

Indifferent No
54% Affordable
55% 10% 27% 61%
Disagree 27%

15% Strongly Maybe Cheap

Disagree

How often do you compromise on features of a policy due to On a scale of 1-5, 5 being the highest, how trustworthy would you Pay-outs are disbursed in a timely fashion
unavailability? call your insurance agent?
Strongly Agree
Very Often
9%
21% 14% 1 2
21% 32% Agree
Often 32%
38% 21%
79% 19% Indifferent
14% Rarely 3 4

13% 15% Disagree

27% Very 22% 23%
Rarely 5
Strongly
Disagree
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

PART B: Stakeholder Interactions Key Comments

Customers Agents Experts “High premium is one of the most

“Cost of development &
common reason for not purchasing
Lead time of formulating
A total of 13 policy by customers. Insurance
2 1 1 new policies is a major
business is struggling to meet with
interviews were concern”
customer demands in cost efficient
conducted identify
manner”
1 2 1 gaps & and identify
most common “Labour intensive and largest “Fraud related costs
grievances faced cost centre for insurers. in the insurance
2 1 2 Nature of work is industry add upto 10%
by insurance of overall claims
standardized and laborious”
companies expenditure”
Total 5 4 4
“Clients of tomorrow should
view insurance companies as “There is a severe lack
entities for preventive entities of skilled insurance
rather than damage control” agents who can
establish a good
SURVEY FINDINGS rapport with clients”

80% 61% 65% 54% 45%

Feel that Policy cost is Compromise on features of a Would describe their insurance Feel that payouts are not
Feel the insurance
more than the risk they policy due to unavailability. agent as untrustworthy. disbursed in a timely
schemes in the
cover. High premiums Policy discovery continues Providing quality of service fashion. Lead time of
market do not meet
become a barrier to to be a pain point for remains a concern in the payouts has been
their current needs
policy purchase. consumers. Insurance Sector. consistently high.
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

Using AI it is now possible to switch from “detect and Unknown

Solution generates Discovering Novel Discovering Novel Customer
repair” methodology to one of “predict and prevent” a new result Operational Drivers Relationship Drivers
. previously not know Ability to discover novel actions Ability to discover novel actions that
AI Recommendations can be grouped under 4 heads. to exist that improve the speed & accuracy improve customer conversion & loyalty
Activities that replace existing paradigms and provide of internal processes Eg. Market segmentation, Product
Eg. Process & scenario planning development
support functions have already been incorporated in
most Insurance function

Focus going forward is on discovering novel

operational and customer drivers to sustain the rate of Known
growth Solution replicates
Discovering Effective Discovering Effective Customer
results from a set of
pre-determined Operational Drivers Relationship Drivers
Need to make a parallel effort to connect the various results Ability to produce desired actions Ability to produce desired actions that
technology components and stakeholders across the that improve speed & accuracy of improve customer conversion & loyalty
insurance value chain and develop an ecosystem for a internal processes Eg. Recommendation system
full-fledged launch of AI services Eg. Customer service automation,
fraud detection

Bottom Line Top Line

Cost Reductions Revenue Increases
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

Implementation of AI Solutions
AI IMPLEMENTATION
 Proposed solution is a unified life insurance point-of-sale tool USURANCE, underwriting and customer service
platform that engages customers with an efficient, modern and seamless sales experience

 IOT DRIVEN INFORMATION PLATFORM: Explore avenues of information sources to gather lifestyle, professional and life event-based details for a
better understanding of risk profile. Understand unique needs of each customer
 Use virtual assistants for agents to identify leads, interact over e-mail and schedule meetings
 Use NLP to interact with customers for needs analysis

INTEGRATION STAGES

• Marketing and Sales • Claims Processing

1 2 3 4

• Product Development • Customer Servicing

• Underwriting & Risk Rating
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

Stage wise Recommendations of AI Solutions

PRODUCT DEVELOPMENT
 Scan and structure existing policies to develop future products
 Create targeted products basis customer feedback at no incremental
cost
Stage 1  Analyse customer buying behaviour

UNDERWRITING AND RISK RATING

 Suggest risk categories for customers basis previous claims & events
 Predict premiums basis past risk assessment
 Pay as you Use Model.

MARKETING AND SALES

 Provide new sales leads basis social media (social media campaigns &
clickstream data) and purchase data

Stage 2  Target specific customer segments basis of feedback analysis

 Recommend-potential spend, suggested campaigns, and personalized products

for cross and upsell opportunity
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

Stage wise Recommendations of AI Solutions

CUSTOMER SERVICING
 Automatic matching of answers to customer queries

 Integrate virtual agent onto customer service platform

Stage 3
 Suggest risk prevention measures basis internal, public and
third party data

 Standardized and consistent quality of service at reduced cost

 Use claims data to direct customers to the right specialist

CLAIMS PROCESSING
 Validate claims by checking external data sources

 Generate automatic claims report basis data to optimize

Stage 4 employee workload

 Derive and automate pay-outs basis company data(historic claims, contracts) to

achieve faster-pay-outs

 Assist insurers in claims handling by querying the asserted

events of an incident.

Methodology Research Insights
Behavioral Policy Pricing
Idea
1 Pay as you use Model
1. Insurance contract terms are driven by 1.
consumer led data collection and
information exchange
2. IOT Sensors will provide data on Driver 2.
behavior & Interpretation of this data
will play a role in deciding Insurance
terms 3.
3. Telematic sensors show real time
tracking of underlying asset
4. Smart devices will help track a
person’s lifestyle and utilize it to
determine insurance terms
Insurance Sector
AI Tool Design
AI Implementation
Key Features Final Outcome
Customized Insurance Options and
discounts are provided basis the driver
data collection and interpretation
Policyholders aren’t part of a risk pool
any more, they are paying what they
risk
Usage based or Pay-per-mile
insurance allows personalizing the
risk in the event of an incident
 Insurance Sector
Methodology Research Insights AI Tool Design
AI Implementation

Customer Experience & Coverage Personalization

Idea Key Recommendations Final Outcome
1 Pay as you use Model
1. In a traditional Insurance firm, agents 1. AI Chat Bots have the potential of
are the leads for conversions and acting as an interface between agent
driving customer engagement and agency

1. Eliminating the consistency in 2. Using AI platforms would help fastrack

capability across the board can be the the process of positioning the agents
biggest challenge as trusted advisors for the company

3. NLP would allow AI Bots to act as

interface agencies to the client

Methodology Research Insights
Fast-tracked and Personalized Claim Settlement
Idea
1 Pay as you use Model
1. Claim settlement is the largest
grievance expressed by consumers &
hence, using AI driven claim
settlement would make it possible to
assess the damage to a car using a
smartphone camera
2. Use of AI is particularly important as
the time-to-settle is the performance
metric that customers care about most
Insurance Sector
AI Tool Design
AI Implementation
Key Recommendations Final Outcome
1. AI component would be trained on
thousands of damages allowing for
quick damage-specific cost estimates
2. Collectively though tech Insurance
companies would be able to make
incidents less likely. This can help to
pass along savings in the form of lower
premiums to customers.
Thank you!