Montoux recently collaborated with Deloitte Hong Kong on a webinar entitled ‘Advanced analytics, AI & improving customer lifetime value: Why so many initiatives fail and how data science can help you to get it right.’ The webinar addressed how life and health insurers in the Asian market can successfully integrate AI technology and advanced analytics into their business to improve business outcomes and customer value.
- Nathan Thomas, Director of Data Science and Multinational Sales at Montoux
- Louis Lee, Partner at Deloitte Hong Kong
Julian Balasingam, Director of Sales and Marketing at Montoux
Key Insights from the webinar included:
- Life and health insurers in Hong Kong and across Asia, are suffering from reduced sales due to factors related to COVID-19. However, people are more aware of insurance products than they were before, and this presents an opportunity for forward thinking insurers.
- By integrating advanced analytics and AI technology, insurers can leverage the data available to them to better understand their customers and improve the customer lifetime value of the products they provide. By doing so, they can improve their business outcomes and the value customers receive from their policies.
- Most KPIs and challenges facing executives will have an AI element. It is up to executives to identify the tools capable of getting them the outcomes they’re looking for.
- Regulator and accounting changes, like IFRS17, provide an opportunity to reform carrier data strategy. Given the changes that need to be made, this is an ideal time to simultaneously set the foundation of using AI technology.
There are a number of reasons why AI and analytics initiatives tend to fail including:
- Lack of clarity on where AI capabilities are best applied.
- Insufficient ownership and engagement from leadership to integrate AI widely throughout the business and across different departments. Using AI is a new operating model and needs attention to succeed.
- Outdated data infrastructure that is unable to handle AI requirements.
- Unclear strategy on what to do with AI-driven insights once they’re generated. Carriers must be ready to leverage these insights into the business across product, pricing, and distribution.
Leveraging third party data is crucial to making the most of advanced analytics and AI initiatives across pricing, product and benefit design. Some advantages include:
- Understanding competitor prices for similar products, product and benefit design.
- Working with distribution partners to legally share data, while respecting privacy, can provide a broader view of the kinds of customers your policyholders are and could be.