AI is transforming insurance CX - here’s how you can stand out

The buzzword on everyone's lips is AI. It's no longer just a hot topic; it's an adopted technology making waves in the industry.  Two-thirds of insurance companies plan to invest $10 million or more in AI and automation technologies over the next three years. From streamlining back-end processes to enhancing customer interactions, AI is reshaping the insurance customer experience (CX). But how can you make sure your organization stands out in this AI-driven world? Let's dive in!

Embracing AI: back-of-house vs. consumer-facing applications

As AI becomes more prevalent, insurance organizations are integrating it in various ways. Some focus on "back-of-house" processes, such as claims processing, fraud detection, and risk assessment. These applications are incredibly valuable, boosting efficiency and reducing operational costs. 

Four in five claims executives believe that automation, AI, and data analytics based on machine learning can bring value across the entire claims value chain — from flagging fraudulent claims, to damage assessment and loss estimation, reserving, adjusting, processing optimization, and subrogation.

There’s significant value in using AI in these “back-of-house” processes, but let’s talk about the flip side of the coin. Consumer-facing AI is changing the way companies interact with their clients. For instance, chatbots can provide instant responses to customer inquiries, making policy information and claim status updates accessible 24/7. 

However, there are pitfalls to be mindful of. 

Over-reliance on AI can lead to a lack of personal touch, making customers feel undervalued and frustrated. Additionally, if AI systems are not properly trained, they can misunderstand customer queries, resulting in incorrect information or poor service. Striking the right balance between AI efficiency and human empathy is crucial to avoid these pitfalls and enhance the overall insurance customer experience.

The balanced approach: AI + human touch

Consumers appreciate the efficiency of AI but still crave the empathy and understanding that only humans can provide. This is where a balanced approach shines. By combining AI with human interactions, you can offer the best of both worlds.

Using AI to understand customer pain points

One of the strongest uses of AI in CX is identifying common points of friction and confusion for customers. AI can analyze vast amounts of data to pinpoint where customers are struggling. 

David Butler, SVP of product and strategy, says, “This investment is essential, and it also paves the way to integrate more sophisticated AI into the customer journey (e.g., being able to automatically identify friction points). These companies are making very smart investments in the customer journey, because AI is telling the companies exactly what part of the customer journey needs attention.”

But here’s the magic: instead of just using AI to handle these issues that it identifies, you can deploy real, human help where it’s needed most.

When AI and humans collaborate, empathy meets efficiency 

Imagine a customer navigating a complex insurance claim. AI can quickly process their information and guide them through the initial steps. But when they hit a snag or need reassurance, a knowledgeable human representative steps in, offering empathy and expertise. Empathy in insurance is powerful. This blend of AI and human touch not only accelerates processes but also builds trust and loyalty.

Read the report: Digital insurance depends on human interaction to drive loyalty

The competitive edge: personalization and loyalty

Using AI to shield experts from customer interaction is a common approach among competitors. However, this often leads to frustration and a sense of detachment for customers. By contrast, organizations that leverage AI to enhance, rather than replace, human interactions can create a more personalized and satisfying experience.

Insurance claims are arguably the biggest opportunity to make or break the insurance customer experience. An Accenture survey of more than 6,700 policyholders  found that one-third of claimants were not satisfied with their claims-handling experiences over the past two years, and this dissatisfaction is a key driver to switch insurers.

How does your digital insurance CX stack up? Download this report for 6 key questions to evaluate your customer experience.

Personalization at scale

Providing a personal experience means anticipating and meeting the specific needs of your customers. Through the right technologies and strategies, you can provide a seamless, frictionless customer experience that aligns with your business goals.

AI excels at personalization. It can analyze customer data to offer tailored recommendations and solutions. When combined with human insights, this personalization becomes even more powerful. Customers feel understood and valued, leading to increased satisfaction and, ultimately, better insurance customer retention.

Learn how insurance companies can tailor their CX to grow with their customers in this blog post.

Final thoughts

AI is undoubtedly transforming the insurance customer experience, offering unprecedented opportunities for innovation and improvement. By adopting a balanced approach that combines the strengths of AI and human interactions, your organization can stand out in a crowded market.

So, what are you waiting for? Explore Glance for insurance and discover how you can elevate your CX to new heights.