Digital development in the insurance industry has become greater and more successful in the past ten years. Recently because of pandemics it has gained even more value and has undergone some important changes.
With the spread of COVID-19, insurance companies all around the globe started working remotely and thanks to the well-developed technologies nowadays, employees and employers can benefit from the productivity going up and costs going down.
It has added convenience to customers who embrace the new opportunity of purchasing insurance online as they can rely on digitally enhanced services that give this chance.
A socially distant world with modern trends such as remote working, digital payments, and online data exchange has developed numerous digital transformations, which have become a necessity.
In this article, we will discuss all the benefits of machine learning in insurance industry and how it helps automate insurance business. So stay tuned!
Importance of Automation in Business
There are two ways businesses have always managed costs and reduced uncertainty during difficult times. It has been possible by adopting automation and changing work mechanisms.
To reduce physical proximity in the workplace during pandemics, adopting automation and Artificial Intelligence (AI) takes place.
According to a recent McKinsey survey of 800 senior executives, more than 500 of them admitted that they are in the process of implementing automation and AI.
It is possible to notice that work areas with a lot of human interactions are the first ones to adopt automation. Some other factors that can demonstrate the need for automation are the high volume of tasks and places where many people are required to do the jobs.
To reduce the number of workers and deal with growth in demands, many corporations set up AI in call centers, supermarkets, and factories.
In those areas it is easy to see the boost of productivity, the work processes become more clear and transparent, as well as the number of errors that occur because of a human factor diminish significantly.
Importance of Automation in the Insurance Industry
The insurance industry, like a big number of other industries, is overwhelmed with data from numerous sources such as social media information, paper documents, online activity, wearable devices, etc.
They call for machines to work on that information and find some analytical ideas. Anyway, it is not the easiest task to maximize the advantages of machine learning.
The majority of insurance companies work only with the smallest part of data they have access to as most of the classified data is stored somewhere in traditional databases, usually manual paper-based systems.
Also, it is complicated to work with unstructured data, so it is often left out. This way insurance companies are unsuccessful not only in getting value from their structured data but also can miss some important information in their unstructured data.
Foremost science techniques are needed for evaluating the unstructured data and using the results for making better professional decisions.
The biggest gain from machine learning in insurance field is that it can work with structured, semi-structured, and unstructured data. It can provide exceptional accuracy to asset customer behavior, risks, and demands.
How Machine Learning Enables Automation
Intelligent Document Processing
For many years insurance organizations have been using Optical Character Recognition (OCR), which can work with physical documents, adapting typed as well as handwritten text into machine-encoded text.
OCR uses standard templates, and there sometimes appear tiny mistakes in critical information, for example, someone’s name, price, or date.
Those small blunders can be a reason for big problems, that is why files converted by OCR require a manual check, and this whole process can’t be called automated.
A modernized alternative to OCR is Intelligent Document Processing, which applies computer vision, language transformation, and deep analysis to structure files, make document quality higher, and sort data to make it appropriate for usage.
Robotic Process Automation
To digitize rule-based organizational tasks insurers apply Robotic Process Automation (RPA). It is often used for conversational process automation (CPA), which is needed for chatbots, interactive voice response, and virtual customer assistants that are handy for routine tasks and business dealings.
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Such automated insurance systems make it possible for customers to get help with basic account questions 24/7, while customer service providers have more time to tackle more complicated matters.
5 Ways Machine Learning is Applied for Insurance Automation
#1 Insurance Advising
Computers can serve as great helpers in customer service. Automatically generated insurance advice is normally determined in the way that it precisely corresponds to the customer's needs.
Computers give passing personalized solutions as machine learning algorithms analyze the profiles and suggest the most appropriate products.
#2 Claims Processing
Insurance machine learning improves processing efficiency beginning with claims registration up to claims settlement. Numerous carriers have taken this idea into action as automatization decreases the processing time, which improves customer experience.
Automation in insurance industry can also supply insurers with quicker information about claims costs.
#3 Fraud Detection
It is estimated that due to insurance fraud, the companies in this branch lose more than US $40 billion per year. Common schemes for fraud include Premium Diversion, where insurance agents don’t send money to the underwriter and keep the funds for personal use, and Workers’ Compensation Fraud when the entities try to sell workers’ compensation insurances at a reduced cost, leave money to themselves, and never take out real insurance.
Thanks to machine learning, identifying fraudulent claims becomes faster and easier and AI provides high accuracy in it. Machine learning in insurance is exceedingly better than traditional models as it can analyze structured and not-structured data to recognize the danger.
#4 Risk Identification
Machine learning helps insurers to foresee the advantages and disadvantages of their program. Assessing and controlling threats early provides them with big competitive benefits and allows them to manage the underwriter’s time wiser.
The Healthcare system always uses a lot of documents which makes this branch perfect for applying machine learning.
Smart process automation and machine learning in health insurance industry simplifies the work with unstructured data, reduces costs, and advances patients’ experience.
Difficulties in Implementing Machine Learning
The value of machine learning implementation in insurance is difficult to overestimate. Yet, there are some challenges and things to consider before the development process.
Predicting Gains Is Complicated
It is difficult to estimate the progress machine learning can bring to the program. The necessary funding may change in the process of investigating new findings, so it is not always simple to plan the budget.
Moreover, it is too hard to evaluate return on investment and find people who would want to invest in it.
Elaborate Training Is Required
Intellectual systems, run by Artificial Intelligence, have to be trained in a certain sphere, for example, claims for an insurer.
For every separate purpose, there must be a different training system, which is not easy to install. To cover all possible schemes and strategies, the model must be trained with tons of documents.
Right Data Must Be Provided
In the situation with machine learning, the quality of data is of the same importance as its quantity. The data has to be representative in order to give a clear picture and be able to train predictive models. Finding appropriate data usually requires great effort.
Data Security
A lot of data used for training machine learning algorithms has built new dangers for insurance companies. All applications are connected and data collecting increases, so the risk of data leaks appears.
When such security incidents take place, personal data can become publicly open. This doesn’t let insurers fully trust machine learning.
Conclusion
Machine learning in insurance can help your company advance and thrive. Custom insurance software development services can adapt to your project demands and professional needs to conduct planning, designing, and other tasks for you, and support you on your way to success
In case you are interested in implementing machine learning in order to automate processes in your insurance business, make sure to contact Intellectsoft!
We have years of experience developing innovative solutions for this industry and would help you take your business to the next level!
The hospitality industry depends a lot on keeping customers happy, but it’s
getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher
than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win
customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and
increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that
getting their attention is a real challenge. It’s not easy to make them choose your business over others. What
worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But
with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy,
expectations have changed. The good news is these businesses have shown what works: great customer
service. They focus on personalizing the experience, making things easy for customers, offering loyalty
programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how
they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction
in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the
backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers
are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a
study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase
in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a
company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality
industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the
hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer
service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s
biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor
Customer Service
Even with strong and high-quality business offerings, poor customer service can
drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we
live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with
technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39%
upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some
still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage
their data and create new systems or add features.
Some of the recent examples include clients coming to us to
create AI solutions for their services
while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company
objective, and working on keeping the data clean (centralized, structured, and segmented).
When
we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI
and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing,
centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so
we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start
with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for
gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide
you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and
travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and
retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers
place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff
not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team,
helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine
having an app dedicated to making your team’s work easier and more efficient!
How Technology
Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar
technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation
and working hand in hand with technology to achieve the highest standards and establish brand-new “golden
standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports
customer service.
Examples of Intellectsoft projects
Property management systems
(PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers
extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with
managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The
platform also includes features for equipment management, key instructions, workflows, and custom permissions. This
makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus,
tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged
community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed
marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining,
make reservations, and interact with staff— through a simple tablet in their room. The solution includes three
parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and
a backend system that connects everything together. This approach makes things easier for guests and staff,
improving both convenience and efficiency.
Existing Customers First: Building Loyalty with
Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that
retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs
five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the
number one revenue driver for the company.
Moreover, a 5% increase in customer retention can
lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a
business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster
long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business
model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s
part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With
the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t
forget.
More than half of hotel chains are already using personalization features on their websites, booking
platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest
preferences perfectly.
Source: Deloitte
How does
technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special
requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping
them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to
local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls
adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every
customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our
clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to
control services, explore amenities, and find resort information-- with a special touch to their suite type. For the
client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing
issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty
program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive
benefits.
Our solutions not only helped the client with special experiences for guests; it also improved
operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We
transitioned away from ESB (Enterprise Service
Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions.
Similarly, we’ve implemented Device Farms that improved operations
and saved resources."
Leveraging Software to
Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and
introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to
introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by
analyzing your database in detail.
Upselling via Apps
Boosting revenue in the
hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your
app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner
reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations
during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience.
And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their
previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource
Management Software
Making every resource count in your hospitality business is key. Inventory and
resource management software allows you to effortlessly track everything from linens to room availability, ensuring
nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations
assists sustainably keep everything under control and know what you need to focus more. It helps maximize room
occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This
approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how
technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service
Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the
right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest
experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by
identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track
customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best
solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look
for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM
software, live chat tools, or a guest experience app can make a difference.
3. Equip Your
Team
Technology is only as effective as the people using it. Train your staff to make the most of the
new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff
creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well
the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you
fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality
Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility
bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer
satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our
experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and
experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building
strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points
and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and
continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software
development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and
systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the
hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer
experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention
strategy with personalized technology? Contact our experts, and
we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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