The insurance industry is a highly competitive sector, where many companies compete with products with practically identical benefits. But, at the same time, the trend in this industry has been towards a decrease in the number of insurance companies, leading to greater concentration in the sector. As a result, differentiation is becoming increasingly important.
Moreover, with the Covid-19 crisis, the insurance industry has had to adapt to new challenges, in order to improve its efficiency and become familiar with the digital transformation process that was imposed by the pandemic.
<<< Discover how AI helps to the Insurance Industry >>>
Despite this post-pandemic context, there are 3 concerns that keep insurers around the world on edge, according to a PwC study: fraud, regulation and technology.
The main concerns of Insurance companies
1. Reducing fraud
The risk posed to insurers by criminal activity, specifically cybercrime, is the biggest threat facing this sector in the next 2 to 3 years. Cyber-attacks in Insurance are considered more serious and more numerous due to the industry’s increasing reliance on its IT infrastructures (data, cloud and third-party technology services).
But insurance companies not only have to protect their customers’ information from cyber-attacks, but they also must ensure that they protect themselves against fraudulent claims from policyholders.
Therefore, reducing fraud and the costs associated with it becomes a key objective for insurance companies.
2. Regulatory Risk and Compliance
Regulatory risk is the second biggest concern for insurance professionals globally, driven by the implementation of new international regulations such as GDPR or Dodd-Frank.
The way data is created, stored, and shared is continually changing every day thanks to technological developments. This has resulted in the creation of extensive rules, policies, standards, and laws that insurance companies are required to adhere to and protect data privacy, as well as compliance gaps that companies need to be aware of.
Failure to comply with regulations such as GDPR, MiFID II, or PCI DSS can result in companies facing criminal liability, costly fines, lawsuits and a damaged reputation in the marketplace. Therefore, ensuring full regulatory compliance and ethical performance becomes essential for insurers.
3. Technological modernization for customer retention
The third major threat to the insurance industry, according to PwC, is the need for insurance companies to keep up with the new technologies being used in the market.
The insurance industry faces high competition and high customer expectations. Insurance companies are expected to deliver a positive customer experience and need to adopt innovative technologies to stay ahead of the curve and achieve greater differentiation.
The contact center has become a strategic element of every company, and by using new speech analytics solutions in their contact centers, insurance companies can gain valuable insights from those conversations to help them create a unique and differentiating customer experience.
Conversational intelligence solutions to help the Insurance Industry
To address all these insurance industry concerns, comprehensive conversational intelligence solutions, such as Recordia, have begun to emerge, enabling insurers to reduce fraud, comply with regulations and improve the customer experience.
Conversational intelligence solutions help to:
Prevent fraud through Speech Analytics:
By analyzing and categorizing 100% of calls, insurers can identify those that are likely to contain fraud, avoid manual typing and improve and objectify the categorization process.
In addition, thanks to conversational analytics, insurers will be able to create cases based on patterns of those calls, so that potential fraudulent calls in the future can be recognized and addressed early.
Ensure regulatory compliance:
The most comprehensive conversational intelligence solutions, as is the case with Recordia, are designed and certified to meet the technical security and data privacy requirements necessary to ensure compliance with international regulations. In this way, requirements such as encryption, exhaustive control of access and movements within the platform, or the custody of data for the time required by each regulation are carried out.
Improved customer experience and loyalty:
Conversational intelligence solutions equip insurance companies with Speech and Sentiment Analysis technology to provide key information to correlate their customers’ satisfaction, dissatisfaction, complaints, and queries with specific agents, products, services, promotions, and policies.
In this way, insurers can find out what works and what makes their customers complain or leave, enabling them to make data-driven decisions to innovate and rebuild the entire customer journey.
Conversational intelligence also provides insight into insurance industry trends that allow them to understand new customer expectations and what their competitors are promising, creating a unique customer experience.
Biometrics to prevent insurance fraud
Fraud is the number one concern for insurers globally. Getting Artificial Intelligence solutions that go beyond voice or sentiment analysis, such as voice biometrics, enables insurers to not only detect and prevent fraud but also boost the experience they offer to their customers.
Voice biometrics technologies enable the identification and verification of customers in a matter of seconds through the unique and specific voiceprint of each customer.
Thanks to biometrics, insurers will be able to:
- Drastically increase security, as the voiceprint cannot be lost or stolen.
- Drastically reduce risk, since the use of passwords or pins is ruled out.
- Improve customer experience (CX), due to less time on the phone, less friction and efficient validation.
- Reduced operations costs, due to automated authentication and lower investment in equipment and logistics.
- Improve reputation.
By monitoring and analyzing data from every customer interaction and using voice biometrics technologies, insurers are better equipped to ensure compliance, reduce fraud and deliver a better customer experience.
Meet Recordia, the most complete solution for conversational intelligence and biometrics, and discover all the benefits it brings to the insurance industry, by clicking here.