Artificial intelligence (AI) is transforming how insurance coverage is offered, purchased, and understood by translating policies into plain language and helping customers better understand their options.
AI has supported back-office operations in the insurance industry for years, providing fraud alerts, streamlining claims processing, and analyzing risk data. Now, it makes insurance more accessible, transparent, and tailored to the needs of insurance buyers. It benefits entrepreneurs and small and medium-sized businesses (SMBs) with niche or hybrid models.
For example, Zurich Insurance Group uses its revamped AI-powered customer relationship management (CRM) system to centralize customer and policy data. It recommends suitable insurance products based on customer needs, streamlines processes, and reduces service times by over 70%. This innovation is part of Zurich’s broader digital strategy. The platform includes 160 AI tools to shift insurance roles from routine transactions to personalized consultancy.
Similarly, Deloitte’s generative AI is revolutionizing the insurance sector by personalizing experiences, streamlining underwriting, and automating claims. AI enables hyper-customized interactions and products, improving customer satisfaction and engagement.
Small business insurance firm Simply Business uses generative AI and advanced data models to simplify insurance for business owners. According to Dana Edwards, group chief technology officer at Simply Business, the company has made significant gains in the past year, building models that personalize experiences in real time based on customer needs and intent.
“For instance, if we identify that a customer is early in the buying journey and primarily focused on price comparisons, our AI can recognize this and present information and messaging tailored to that specific need,” he told TechNewsWorld, adding that customers see coverage options presented in a clear, concise, and personalized explanation.
How AI Simplifies Small Business Insurance
Group Chief Technology Officer
Following the company’s mantra to move fast on bold ideas, Edwards now sees the impact of hyper-personalized interactions on user engagement and conversion. He noted that the insurance advisor chatbot shows strong engagement and delivers a high purchase rate among customers.
“This active role of AI in customizing coverage options and guiding policy selection has not only empowered small business owners to make informed decisions. It builds stronger relationships with our customers from the outset to create lifetime value,” he said.
Edwards noted that AI makes buying insurance more intuitive and accessible. It removes jargon and presents information clearly and straightforwardly, tailored to the individual business owner.
“For niche or hybrid models, our AI can understand the intricacies of their operations and translate complex information so that we can deliver coverage options unique to them, in relatable terms, ensuring they grasp the essential coverage relevant to their specific business needs,” he explained.
Edwards offered an example of how the AI-powered platform simplifies the policy selection process for new customers. Instead of navigating lengthy forms and complex questionnaires, business owners can engage in a dynamic conversation with an AI assistant.
By asking questions about their business operations, the AI quickly identifies core needs and presents a curated selection of relevant policies, accompanied by clear explanations. This automation reduces the time and effort needed to find suitable coverage.
How AI Helps Insurance Agents and Business Owners: Q&A
We asked Edwards to demystify how Simply Business uses AI models to improve insurance marketing.
TechNewsWorld: How does AI personalize insurance policies to ensure coverage options tailored to specific needs?
Dana Edwards: Our AI algorithms delve into the specifics of each small business, understanding its unique operations, risks, and even preferred language. This allows us to move beyond standard offerings and present coverage options tailored to its business needs. This level of personalization, driven by AI insights, ensures that business owners receive the most relevant and effective protection options for their specific needs.
How does AI enhance transparency and improve trust between insurers and business owners?
Edwards: One significant challenge for small business owners is navigating the complexities of insurance. If a customer shows signs of simply comparing prices, we avoid presenting urgent “buy in minutes” messaging because that doesn’t align with their intent.
This tailored approach respects their needs and builds trust by demonstrating that we understand where they are in their decision-making process. By dynamically adapting the user experience to meet specific needs using AI, we create a more transparent and trustworthy environment for small business owners seeking insurance.
How does this more human role for your AI agents interact with real insurance agents?
Edwards: AI agents identify optimal coverage options tailored to each client’s risk profile. This method allows our sales agents to move beyond generic recommendations and offer personalized advice, ensuring their clients receive the most relevant protection options.
AI agents streamline the initial information stages and policy exploration. The bots free up human agents’ time, allowing them to focus on building strong relationships, providing expert guidance, and ultimately delivering a more efficient and value-added service.
AI is a disruptor in many industries. How do you see AI reshaping the role of insurance agents in the future?
Edwards: While AI automates specific tasks, we believe it will enhance, not replace, the crucial role of insurance agents in building relationships. AI allows agents to move beyond generic interactions and engage in meaningful conversations. With AI, insurance agents can gain a deeper understanding of their customers to build stronger, more profitable relationships, leading to reduced churn and increased customer lifetime value.
What is the next significant step in AI’s evolution within the insurance industry?
Edwards: A crucial evolution of AI in the insurance industry will be what we call “fully autonomous smart journeys.” This outcome is essentially where AI removes the need for manual interventions, integrating flows and processes into the online journeys of brokers and marketplaces.
This practice will become the norm for anyone searching for insurance online. Outside of the initial purchase journey, AI will continuously monitor key indicators of a business’s development, such as changes in revenue, employee count, service offerings, or even geographic expansion.
AI can then proactively alert business owners and suggest necessary adjustments to their insurance coverage. This shift from a static annual review to dynamic, AI-driven recommendations will empower businesses to maintain optimal coverage as they navigate their growth journey.
