Personalization Is The Next Big Thing In Insurance

Have you ever wondered why two people who live in the same city, have almost similar lifestyles, and are also of the same age, pay different insurance premiums? One probably ends up paying Rs 5,000 more than the other. 

Oh, and this is not about luck. It’s just getting the right data. 

Chances are, your competitors are already using this approach to offer their customers better prices.

And what is it? 

Industry experts are calling this the era of personalized insurance, and AI is enabling it. So, underwriters don’t rely on “standard customer profiles” anymore; they use advanced tools to assess every aspect of an applicant. 

Still, why is personalized insurance so important? 

Because having a blanket risk model is unfair. 

So, personalized insurance isn’t just a “keyword” that your team gets to use to run ads. Yes, you may get better visibility, but your retention rate would be the same. 

McKinsey has confirmed that 70% of insurers are now adopting this strategy for business growth. 

Apart from growing your insurance business, using AI to design insurance plans will also save your team a lot of time and reduce risks. 

Underwriting time has already dropped 40%-50% using AI, and the accuracy rate of identifying risks has gone up by 35%. 

Now, the question is…

How do you offer personalized plans using AI and data?

Here’s the easiest way to do it.

Work with Underwrite.in. 

But why should you?  

Unlike thousands of other companies, at Underwrite.In, we understand that achieving only automation and speed is not the goal. The industry also demands precision and transparency.

We understand the importance of keeping up with industry trends while valuing old virtues. That’s why our AI-powered assistant offers: 

• 85% faster processing

• 60% cost reduction

• And 3x more accuracy

We also have a team with over two decades of experience who have successfully processed 10,000+ applications without any complaints so far. 

Now, here’s the other way…

If you want your team to do the heavy lifting, then follow these steps -

1. Make sure your team has the right data

Before jumping into building an AI tool, you should first clear the inventory of your existing data. 

Most insurers usually have tons of structured data like claims history, policy forms, and questionnaires, but often don’t have the data pipelines and systems in place to make that data usable. 

And without clean data, even the smartest AI tool can’t perform. 

2. Introduce real-time updates 

Underwriting should be a continuous process, not a quarterly or annual ritual. 

That’s why there shouldn’t be profile sets prepared ahead to categorize applicants based on generic metrics. However, traditional underwriting follows exactly this process. 

If you want your company to stand out in the crowd, you should train your AI tools and data models to continuously gather information from IoT devices like telematics, ER integrations, and wearables. 

3. Start noticing human behavior 

Stop worrying about demographics or the bigger picture. 

If you want to offer personalized insurance premiums, you should start noticing the individual behavior of applicants. 

So, instead of asking questions like “How many times did you visit the hospital last year?” start finding:

• How active that person is

• If the person is a chain-smoker or alcoholic 

• What’s their sleep cycle

These data points will also help your team provide more accurate assessments, thus adding to your company’s credibility. 

Adoption tip (that actually works)

Keep humans in the loop 

Yes, the trend in the market is to replace humans with AI tools. But these models can’t fully understand regulations, ethics, or bias, and all these things are non-negotiables in insurance underwriting. 

So, the HITL or Human-in-the-loop is the best framework to adopt right now. 

At Underwrite.In, we have a full team of experts with actual industry knowledge, who ensure your job gets done without hiccups. 

But our AI-powered platform is also built with a commitment to fairness, transparency, and data privacy, ensuring that you can revolutionize your underwriting process while upholding the highest ethical standards. 

We are dedicated to mitigating biases, safeguarding sensitive information, and providing clear insights into how data drives decisions.

So, if you want to automate your underwriting business now, book a free demo now & try for yourself!

Team Underwrite.In