How AI and automation can transform your insurance business
Keeping pace with technological change can be simpler than you think.
It has barely been two years since ChatGPT was released to the public, and there are already several artificial intelligence tools for finance professionals, with some attracting millions of dollars in funding.
What these developments should tell business leaders is that “digital transformation” as a phenomenon comprises different aspects — be it a new technology, a more streamlined way of working, or a new client demand.
Regardless, once adoption begins, it spreads fast.
The question is: Can you keep pace?
The answer: Yes, you can. Not only that, it is simpler than you think.
To get started, focus on straightforward yet high-impact changes that will let you run your business more efficiently and deliver consistent levels of client service while helping you grow faster, too.
I want to assure you that AI isn’t going to replace insurance professionals. What will eat jobs, however, is any reluctance to embrace constant and unending improvement — the so-called CANI principle.
Embracing transformation
There are multiple benefits to embracing AI and the broader digital transformation beyond just staving off disruptive competition. Let’s say you’ve swapped out a paper-heavy process with a digital-first automated approach, such as an online onboarding process. Instead of hours of paperwork and needing to come in person for signing ceremonies, your prospects can open and fund an account within minutes.
That’s not only a tremendous amount of time saved for your business. Your employees and those new clients are all happier because they had a convenient, simple experience instead of slogging through a dated process. Your operations team has less headaches to contend with, too, because the process was centered in one place and integrated with the custodian, so all the information was sent according to their set standards and virtually error-free. And as the firm principal, you are happier because you can serve more clients as a result.
Ultimately, you’re solving problems for multiple people — maybe even before they realized they had an issue in the first place.
AI and client demand
AI is undoubtedly going to supercharge many of the practice management tools firms are using today. Prospects and clients pushed even the stodgiest firms to make virtual sessions standard even after the pandemic came to an end.
Soon, those same prospects and clients are going to have their own AI-powered assistants to handle their financial lives, including joining up with an advisor and monitoring their progress toward financial goals, and they’ll expect your firm to be able to interact with those assistants. Without a modern technology foundation, your business will not be able to win that client.
Starting points
If you’re wondering how to get that foundation in place, let me suggest some starting points that will produce quick wins in boosting efficiency and improving your client experience.
No. 1: Automate your onboarding process. One of the biggest time drains for producers is client onboarding. By implementing automation tools that gather client information, send automated reminders, and streamline account setup, you can drastically reduce time spent on manual tasks. This provides more time to focus on relationship-building rather than paperwork.
No. 2: Use AI to enhance client communication. AI-driven tools can help stay ahead by automating routine client communications, such as portfolio updates or reminders of important dates. Personalized AI-generated insights can also provide clients with tailored advice, improving both engagement and client satisfaction with minimal effort.
No. 3: Automate workflows. Insurance professionals often juggle many moving parts, from compliance paperwork to client check-ins. Workflow automation platforms can help by setting up automatic task reminders, managing deadlines, and triggering follow-up actions without the need for manual intervention. This allows your team to focus on higher-value work while reducing errors and oversight.
Kartik Srinivasan is president of Advyzon Institutional (www.Advyzon.com), a digital transformation company focused on building the most comprehensive tech platform for financial advisors and wealth managers.
Opinions expressed here are the author’s own.
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