Global Trends

Artificial Intelligence: Changing the face of Insurance Industry

How ICICI Lombard is redefining Artificial Intelligence?

Artificial Intelligence(AI) is the capability of a machine to imitate intelligent human behavior and learn accordingly. This is the latest epitome of human excellence. Every person, every organization, every industry is talking about it with curiosity and enthusiasm.The insurance sector is no strange to this phenomenon. At ICICI Lombard, we have been early adopters of technological and digital tools across multiple functions i.e. Underwriting & Claims, Operations, Sales & Distribution etc. We were the first general insurer to launch an online sales platform in 2005. Technology plays the role of an enabler in our business. Here is a glimpse of our IT initiatives.

Technology enabled customer solutions at ICICI Lombard:

• Website: We have recently revamped to create a 'Mobile First’ design. This is in line with the customer behavior to access our website through the mobile device.
• Insure App: Our customer-focused app, Insure, empowers customers to purchase / renew or extend their policies and also intimate a claim. They can trace the nearest hospital or garage and also receive notifications for their policy and status of their claim intimation.
• Mobile Self Inspection: This unique solution for customers enables the hassle-free renewal of their lapsed motor insurance policy.
• Photo Quote feature: This feature in our mobile app 'Insure' allows a customer to share a photo of the existing motor policy (any company) and receive a renewal quote.

Artificial Intelligence is playing an even bigger role and has much greater impact. It promises to deliver value at every step in the entire value chain of insurance.

Insurance industry tends to be manual. From underwriting to claims processing, from product recommendations to renewals, from identifying risk groups to detecting frauds, it is heavily human-reliant. As a result, insurances are sold, not bought and thereafter continued with complete involvement of people. We understood this new wave and introduced new services. Our ICICI Lombard's iPartner is the state-of-the-art Point of sales software deployed with the Agent, Corporate Agents, Brokers and Bancassurance Partners. Another initiative, Risk Inspect' app captures risk information of low sum insured property risks. One can take photos through the app and geocode them to identify risk location.

To push the penetration of two wheeler insurance, we introduced mobile printers that are connected to onsite laptops (that run our ILPOS software) and enable the ground personnel to instantaneously issue a policy document in no time. The policies are then synced with our central servers at the end of the day.

But as the times changed, so have the customers and in turn our industry. AI has emerged robust and valued. It has been galvanizing our industry towards better things. AI brings improved efficiencies; automation in underwriting, claims, and customer service; and analytics that work faster and smarter. Our e-cashless module enables hospitals to create cashless requests directly in the claims processing system. We process 70% of hospital transactions through e-cashless mode. We have automated our claims payment process and pay 97% claims today through this system compared to 40% in FY2011. Our Claims Assist initiative.

With advancements in social media, web analytics, image checking, etc., the customer data can now be tracked in real-time. Thus, things such as product recommendation, risk group classification, fraud checks, and customer requirements are all simplified, accurate and completed within minutes. You can sense the comprehensive impact AI will have on the industry. It is the key to make informed and better business decisions, a launch pad for better revenues.

How exactly does this work?

1. Larger the data reach, better the work

Today, AI can source customer data from numerous sources such as social media, blogs, CRM systems, etc. and combine it to provide better analytics.

At ICICI Lombard, have deployed a chatbot named Myra, a cross-product virtual assistance. MyRA works in real time to respond to all customer queries and helps generate queries in respect of proposals shared by the insured. It has also enabled cross-product services such as buying or renewing two-wheeler policies, providing a quotation for fire insurance policies, etc. The introduction of MyRA has resulted in reducing the customer turnaround time by 50% and generation of quotes is faster than ever!

2. Communication beyond traditional boundaries

AI, with its machine learning capabilities, is always at work. It studies human thought processes and patterns to analyze human behavior, renewal of Health policy through chatBot on Facebook which is under construction at ICICI Lombard is the best example of this.

3. Consistent brand experience, better customer intelligence

A consistent brand experience is tough, especially in the insurance industry, but not with AI at hand. AI maintains a unique brand experience for the customers and styles that experience to each individual.

We have also introduced a chatbot for employees named YAAR. It addresses queries pertaining to leave policy, salary and remuneration, group mediclaim insurance, etc.

4. Yes, predictive recommendations are a thing now

AI systems can be globally interconnected within seconds. The faster speeds mean more data, faster learning, and better adaptability.

An example is our direct communication from agent to the robot to seek a quote on proposed fire risk, enables faster quote generation and policy issuance. No human intervention required for quote generation.

AI might seem as a challenge and competition to human work, but it is more of an empowerment tool that is necessary to avoid becoming obsolete. The time is now for insurance industry's mindset to eventually cave in and make way for the rise of Artificial Intelligence.