Swiss Re provides a roadmap for the industry
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Swiss Re has highlighted the growing importance of advanced analytics and artificial intelligence (AI) in strengthening customer engagement and increasing sales within the insurance industry.
The company's recent research shows that “customers perceive artificial intelligence as a key driver of better experiences,” which not only increases sales, but also It also shows that AI plays a pivotal role in shaping expectations.
Daniel Levy, Principal Risk Consultant at Swiss Re, pointed to the potential of AI in personalizing customer interactions during a recent discussion. This approach not only retains customers but also improves the quality of their interactions. Traditional propensity models are considered insufficient unless combined with other strategies. According to Levy, “trends are not perfect,” so to achieve a greater return on investment, especially when customer interactions are low-cost and involve a large portion of the customer base, more variety is needed. A unique approach is required.
He advocates using multiple AI tools to achieve a better return on investment, especially in scenarios involving inbound inquiries and a broad customer base. The company emphasizes the limits of relying on a single solution and promotes diverse AI applications.
Additionally, Levy pointed to the effectiveness of behavioral segmentation models, which classify customers based on behavioral patterns rather than demographic data. Such models have proven to be excellent for customer engagement, as they provide insight into customer motivations and enable customized communications. For example, one customer saw a 33x increase in customer actions for customers identified as highly active compared to customers with low activity levels.
Behavioral insights can also help you understand nuanced customer motivations that can vary widely even within similar demographic groups. Recognizing these differences allows for more effective and personalized customer interactions.
Levy also touched on the ethical considerations of using AI, stressing the importance of transparency and responsible application. The company said that without proper oversight, using AI to create personalized messages could lead to ethical concerns, especially if the rationale behind certain communications is unclear. suggested.
“That said, these models can raise ethical issues that need to be taken into account in responsible corporate strategy. Unlike behavioral segmentation, propensity models do not necessarily explain why a particular message is selected. It is not always clear-cut and results can be difficult to explain, which can raise questions. Therefore, its use should be closely monitored,” Levy said.
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