April 18, 2016 | Written by: Chris Balian
Categorized: Client Stories
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As pressure grows on insurance marketers to produce quantifiable results, they are reassessing how they create appealing products and engaging experiences to attract customers in the constantly evolving digital landscape. I recently had the opportunity to facilitate a roundtable event with insurance marketing executives, and three common themes emerged.
- First is the imminent spike in digitally connected consumers who are expanding their footprint in today’s economy. While millennials tend to be more demanding of their service providers, this influential cohort opens up new opportunities for insurers to expand their customer base, improve retention and grow wallet share.
- Second is the growing opportunity for insurers to deliver more personalized and engaging interactions. Today, consumers demand that companies understand their unique situations and know them as individuals, not generalized segments. Insurers that can give their policyholders this type of experience will significantly differentiate themselves and produce quantifiable results.
- Third is the proliferation of data sources, including gaining insights from the Internet of Things (IoT) as well as expanding the value of unstructured data. With better access to this information and easier engagement through natural language tools, insurers can pose new questions and better understand many different types of risks.
To succeed in this fast-moving environment, insurers must create engaging experiences that are tailored to the customer’s needs and situation through smarter use of data. While the digital age has ushered in a wealth of new information, many organizations still struggle to unlock the full potential of all that data. How can hidden insights that reside in structured and unstructured data be more fully harnessed for discovery, insight and dialog?
The answer lies in cognitive computing. A cognitive system can access vast stores of historical and transactional data. It applies machine learning algorithms to discover connections and correlations across these data sources. The algorithms will mine the data for historical trends, behaviors, predicted outcomes and optimal responses. It can engage customers using natural language to create new opportunities to systematically converse with customers. It uses that resulting “knowledge base” to supercharge decision support and deepen learning.
Gaining deeper insights for better business outcomes with Cognitive Computing
By combining leading market indicators from external sources with internal historical and sales channel data, insurers acquire deeper knowledge about patterns and trends. These insights can help decision-makers improve their confidence in the predictive models they are leveraging for sales and marketing programs, fraud detection, risk analysis and more.
While cognitive computing may be a game-changer for the insurance industry, it is not a thing of the future. Cognitive systems and building new ways to engage with customers are here today. IBM is helping insurers across the industry leverage analytics, business intelligence and cognitive technologies to increase efficiency, enhance the customer experience and make smarter business decisions.
For example, working with IBM:
- A leading insurer improved the productivity of its call center by analyzing historical customer data to enrich operator training and optimize content across channels
- A life insurer processed claims more accurately and efficiently by analyzing medical certificates to classify medical conditions and treatments
- An auto insurer deployed an agent-like, conversation-based capability to sell automobile insurance electronically
The rise of the digital consumer has spawned a range of commerce trends that require insurers to transform the way they interact with customers. Cognitive systems can provide an important catalyst for this transformation, helping insurers expand their existing intelligence capabilities. With better insights, they can create compelling, truly customer-centered experiences that lead to more profitable, long-term relationships.
For a deeper look at the potential of cognitive computing, check out this white paper: “Understanding customers and risk; your cognitive future in the insurance industry“.