The digital revolution in true sense has taken the world by storm. Ever since its introduction, the service industry has shifted its focus completely towards offering personalized experiences to the customers. The travel insurance industry is also sailing in the same boat and has been using new-age technology to offer the best products and services to its customers. But if you go by the experts, artificial intelligence is the key to offering personalised travel insurance services in future.
Artificial intelligence (AI) is a widely used digital tool in the insurance industry today. Insurance companies use it to provide customised policies to their customers. The data collected on customer’s behaviour and trip details through AI are analyzed to offer customized travel insurance policies.
Similarly, companies offering travel insurance use machine learning and mathematical models to personalize the customer’s buying experience. These tools use the customer’s information and trip details, such as the age of the traveller, travel destination and duration of the trip, to come up with a suitable premium quote and the list of coverage. Moreover, AI allows customers to opt for individual insurance covers instead of buying a comprehensive policy for their trip.
The use of artificial intelligence has also reduced the time taken to settle a travel insurance claim from days to minutes. Faster claim processing is particularly important for the travel insurance industry as it leads to higher customer satisfaction and builds their loyalty towards the company.
The whole idea behind using artificial intelligence in travel insurance is to retain customers. The companies have to strive to take into account every last detail of the customer’s trip safety requirements. This is where artificial intelligence comes in. AI analyzes the data collected to provide each customer with a tailor-made policy that meets all his protection needs and makes him feel valued. Only when a customer feels satisfied, he will come back to buy travel insurance from the same company again in the future. Moreover, he will also convince his friends and families to go to the same insurance company for travel insurance needs. Thus, we can say that customer retention is a crucial aspect of the growth of a company where AI helps them out.
However, it is equally important for companies to ensure that the customer is comfortable in sharing the details and his information is not misused. Any misuse of customer’s data, especially on sensitive topics, can create negative goodwill for the company. A good way to ensure this is by keeping the data anonymous. A lot of insurance companies follow this practice to maintain the trust of the customers.
Moreover, the buying options for insurance needs to be intuitive. The use of artificial intelligence can help in predicting the behaviour of the customer and maintaining a high level of service quality.
On a broader perspective, artificial intelligence also provides scope for innovation in the travel insurance industry. The insurance companies can use their resources to develop new ideas and innovative products that will eventually help them to drive in more customers and stay ahead of their competitors.
Artificial intelligence is the answer to providing personalized travel insurance products and services in the market. The insurance companies can use it to bring in greater accuracy in the insurance buying options along with greater customer convenience. With a vision to retain as many customers as possible, insurance companies should continue to innovate and come up with travel insurance products that are more intuitive and meets the buyer’s trip safety needs. Only when the customers are satisfied, insurance companies can witness growth.