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Enhancing Customer Engagement and Sales in Insurance_ The Role of AI and Advanced Analytics

Enhancing Customer Engagement And Sales In Insurance: The Role Of AI And Advanced Analytics

Swiss Re has emphasized the growing significance of advanced analytics and artificial intelligence (AI) in enhancing customer engagement and driving sales in the insurance industry.

Recent research from Swiss Re indicates that customers view AI as a key factor in improving their experience, highlighting its essential role in not only increasing sales but also shaping consumer expectations.

Daniel Levy, a principal risk consultant at Swiss Re, discussed AI’s potential in personalizing customer interactions. This personalization not only helps in retaining customers but also improves the quality of these interactions. Levy noted that traditional propensity models fall short without additional strategies. “Propensity is not perfect,” Levy remarked, suggesting that a more diversified approach is necessary to achieve better returns on investment, especially when dealing with low-cost, large-scale customer interactions.

Levy advocates for using multiple AI tools to enhance returns on investment, particularly in scenarios involving inbound inquiries or extensive customer bases. The company stresses the limitations of relying on single solutions and encourages a diversified application of AI technologies.

Furthermore, Levy highlighted the effectiveness of behavioral segmentation models, which categorize customers based on their behavior rather than demographic data. These models have proven to be more successful in engaging customers by providing insights into their motivations and enabling tailored communications. For example, one client experienced a 33-fold increase in customer actions among those identified as highly active compared to those with lower activity levels.

Understanding behavioral insights helps in recognizing the diverse motivations of customers, even within similar demographic groups. This recognition allows for more effective and personalized customer outreach.

Levy also addressed the ethical considerations of AI usage, stressing the importance of transparency and responsible application. Swiss Re cautioned that without proper oversight, the use of AI in creating personalized messages could raise ethical concerns, particularly if the reasoning behind certain communications is not transparent.

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