How—and Why—AI Should be Adopted in the Insurance Industry
As the insurance industry evolves, the idea of embracing artificial intelligence (AI) is no longer a futuristic concept—it’s become a necessity to stay relevant. In fact, 79% of principal agents planned on adopting AI by 2025.
Because most businesses in the insurance space are starting to adopt the use of AI in their agency’s operations, it’s important to start taking steps to do the same.
How can AI help insurance agencies?
AI serves as a tool that can streamline operations, enhance client interactions, and drive business growth. Simply put, AI saves time for insurance agencies so they can focus on running their business. Here are some strategies that you can take to adopt AI.
1. Streamline Agency Operations with AI Automation
When used right, AI can significantly reduce the time spent on repetitive tasks. It takes the monotony out of the day-to-day to-dos by handling the easy stuff for you that much faster.
By implementing AI-driven automation, insurance agencies can spend less time on the small details and focus on the bigger picture—growth.
Here’s a thought experiment you can run through to identify areas that can make your agency more efficient with AI.
Think through what actions or processes your team does on a day-to-day basis. Can any of those be automated in some way, shape, or form? Then, consider how much time can be saved by making your team more efficient.
Here’s what you can try with AI:
- Increase productivity by having your team use AI to handle simple, repetitive tasks that they normally do manually.
- Create templates to outline step-by-step processes and client communications to become more efficient and consistent.
2. Enhance Client Engagement Through Personalization
AI enables personalized communication, which is crucial for building strong client relationships. By tailoring these interactions, you can improve customer satisfaction and loyalty.
Businesses in the insurance industry are adding AI into the mix to help them respond to clients, particularly for the common and simple responses that otherwise eat up time. This leaves more room to spend on complex communications that require more care, attention, and the knowledge of a licensed agent or broker to solve.
With all of this in mind, take stock of your current client communication strategy.
How often are your clients reaching out to you, and by which methods? What is the percentage of simple requests vs. complex ones? How do you currently provide service and respond to your clients online?
Here’s what you can try with AI:
- Create message templates for frequently asked questions that your agency can use with ease.
- Check and respond to online reviews and social media comments using AI to help formulate responses.
3. Refine Your Agency’s Marketing Efforts
A strong digital presence is vital in today’s competitive market, especially for the insurance industry. AI can enhance your visibility and search engine ranking through content creation.
Think of blog articles, social media posts, newsletters, emails, and other web content—all of this can be created using AI and potentially give new insights and ideas to change up how you market your business.
So consider your current marketing strategy. Are you actively creating content for your website, blog, and social media? How much of your agency’s focus is dedicated to marketing vs. where it should be? Are you seeing any success from your current marketing efforts?
Here’s what you can try with AI:
- Draft and create website, social, and blog content to stay on top of your marketing efforts.
- Create a brand outline to identify your target audience, brand voice, niche markets, and develop marketing strategies based on your specific goals and offerings.
- Ask AI for advice on how to improve your current marketing strategies.
4. Establish and Nurture Client Relationships
Enhancing the client experience should be the goal of every insurance agency. There are multiple ways to achieve this, but the easiest is to make sure your clients are hearing from you often.
To figure out how often, you have to consider your client’s journey in their lifecycle as a client—what are the key milestones they experience? Let’s take an insurance agency’s client journey as an example, when:
- They sign up for their first policy.
- They file a claim request.
- They pay their bill on time.
- They have a life event that changes coverage needs.
- They are impacted by a change to their coverage.
- They celebrate their birthday.
- They are up for policy renewal.
Each of these milestones is going to apply to the vast majority of your client base at one time or another. What you can capitalize on is using AI to develop messaging that can be used to send to clients when the time is right.
Consider how often you are currently reaching out to your client base. Are you connecting with clients during these important touchpoints? Do you have automation tools in place to streamline these communications?
Here’s what you can try with AI:
- Determine the key points of your client’s journey that you want to incorporate communication into.
- Create messaging for relevant client milestones that can be sent manually or through automation.
Key Takeaways
By adopting AI as a tool to empower your business, you can start transforming your operations, improving client engagement, and driving sustainable growth.
Remember, every business is different, and before using AI, you should think through what problems your agency is facing so you can use that information to develop a plan to incorporate AI. Take those goals and turn them into a reality by partnering with AI technologies to achieve them.
👉Download Agency Revolution’s AI Adoption Playbook
Jason Walker is the President of ACT Supporting Partner, Agency Revolution.
Learn more about Agency Revolution here.