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How Personalization can Aid Insurance Underwriting

By Insurance CIO Outlook | Monday, January 13, 2020

Insurance underwriting can benefit immensely from personalization allowing the firms to enhance business and increase customer satisfaction.

FREMONT, CA: The insurance industry is increasingly incorporating technology-driven solutions to address many of its challenges. Underwriting solution is one such aspect of the insurance sector that is benefitting highly from innovations such as artificial intelligence (AI), improved data analytics solutions, and others. When it comes to underwriting, insurance firms are eyeing solutions that can serve the particular interests of individual customers. Personalization of insurance underwriting has the potential of revolutionizing the industry. 

Customers have varying preferences. The availability of data and processing capabilities makes it possible for insurance firms to collect and segregate their customers based on their behavior and choices. Later, such insights can be used to prepare underwriting solutions enabling the insurers to adopt tailored pricing practices. Such a fact-based approach to insurance underwriting also results in more affordable coverage. The personalized underwriting based on insights of a policyholder’s behavior fuels the predictive analytics capability of the insurance firms. The above approach minimizes presumptions and results in more accurate risk assessments. 

Customized policies for the insured make them feel more valuable. The amalgamation of AI capabilities, predictive and data analytics, cross-channel messaging, one-to-one content, and NLP allows insurers to design affordable and customer-centric policies. Automation of the insurance processes is also contributing to the personalization aspect. Business processes and operations in insurance are getting increasingly consistent through automation. Automation is also powering real-time underwriting along with automated execution of claims through capabilities like smart contracts. The above features are enabling the sector to become more efficient and offer a high level of personalized policies and services to the customers. Enhanced digital connectivity allows the insurance firms to connect with the customers in real-time, which directly contributes to the personalization efforts.

Insurance firms understand the essence of personalization into the underwriting processes and are increasingly using technology to achieve the same.

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