In recent years, the perspectives of AI and blockchain in insurance have become more attractive. Regardless of industry, more corporate CEOs have started seeing numerous possibilities in these technologies to gain greater operations automation, processes facilitation, and competitive advantage excellence.
Both AI and blockchain have the power to revolutionalize traditional industries, and itās common for key executives to examine these technologies with interest and fear.
At the same time, the zest of insurance companies in AI and blockchain is weaker than on average, comparing to other market sectors.
As Deloitte states, only 1.33% of insurance vendors actually bought AI tools; itās more common for them to pay attention to the internet and software ā the indicator here is 32%. When it comes to blockchain, the technology itself is mostly associated with decentralized finances, digital currencies, and the banking sector.
Nevertheless, itās applied in insurance too: out of 200 blockchain solutions registered by McKinsey Panorama FinTech 20 were insurance-related. And their number is increasing with the growing interest and better understanding of these technologies.
In general, blockchain and AI still demonstrate relatively weak positions in insurance, comparing to the other industries. Due to these frequency lagging and additional implementation problems, weāll show in which technologies you can invest today to gain an immediate competitive advantage.
Whatās the Main Application of AI in Insurance
The ways AI improves the regular processes in insurance are numerous, but all of them are closely connected with data management.
In the current age of ādataficationā of businesses and the growing power of Big Data, AI provides sophisticated yet intuitive tools for processing the information and drawing relevant insights. You can use them for your own good in many ways.
In the insurance sector, AI can help change the approach in data management from primitive data gathering to its effective processing.
For example, you can get working software to provide custom insurance packages to the clients based on the personal data collected during the entry surveys. It can advise car insurance based on the number and characteristics of clientsā automobiles. Or you can offer a particular health insurance package linked to the lifestyle specifics of each customer.
And all these advantages and personalization ā without the need to spend time and human resources doing all the paperwork, linking a CRM software, learning your personnel how to work with it, and gathering the team of analysts to provide the insights.
AI can do everything by itself to give you concrete answers to the question āwhat to do with terabytes of data weāve been collecting for yearsā. And an important next step: the technology can transform all these insights into repetitive tasks.
Just imagine how much time it saves you on doing some other important business tasks! Thatās the competitive advantage essence of AI in insurance.
How Blockchain in Insurance is Applied
The short answer to the question āwhat is blockchain insurance?ā is smarter financing. Its perspectives go far beyond money management and include higher customer engagement, better scaling, and effective digitalization.
In short, blockchain for insurance means the greater power of customer-controlled personalized data.
Thus, the main good the technology brings is to empower the traditional models with highly innovative and personalized solutions. In particular, you can manage records and process payments faster.
Another set of advantages includes better budget management, risk mitigation, improvements in customer service, and building mutual trust in communication with key stakeholders.
In practice, blockchain provides insurers with the effective tools to prevent frauds, simplify the application process, improve directory accuracy, and create records with full customer profiles.
Top 5 AI Insurance Examples
Hereās the list of key AI insurance services and innovations you can invest in these days to gain a competitive advantage in the market.
AI in Auto Insurance
In the automotive industry, an AI insurance company can offer a customized approach. As a special service, you can adapt your current process and prepare to switch to self-driving cars in the near future ā as the Coronavirus global lockdown in 2020 showed, itās important to be ready to implement new working models immediately.
In general, AI technology can assist in getting new revenue streams and being in touch with your clients through chatbots and customized communication templates.
AI in Life Insurance
When it comes to your personal life, AI can provide relevant insights with automated input management. This tool collects information about clientsā previous life events, along with their frequency, to offer personalized services and packages that really matter.
AI in Insurance Startups
InsurTech is a highly prospective direction of AI insurance development. Small firms like Clover, Fabric, GetSafe, and Trov offer selective software services on a decent level to cover the growing interest of insurance executives in the technology.
Among the solutions offered, you can request claims-handling chatbots, smart consulting on insurance packages, and quotes generation.
Lead Generation
AI insurance can help in attracting new clients and turning them into sales appointments. The software can scan social media, forums, and email databases to search for potential leads and offer them insurance services.
Whatās more, the intelligence component in the technology can reveal itself in making a highly personalized message with the pre-designed template.
For example, it can offer travel insurance to a person who announced on Facebook heās about to visit a foreign country. All the processes will happen automatically.
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AI can prevent severe fraud-connected problems in insurance companies. In this case, the technology will investigate the possible factors and threats while handling claims to get an objective picture of the previous events.
If a person claims he became a victim of an earthquake somewhere in Mexico, AI will scan the news from this country to check whether an earthquake actually took place and who were the victims according to the hospital reports.
This way, investing in AI technology will save money on paying investigators and covering frauds.
Blockchain in Insurance: Use Cases
Blockchain and insurance together create several interesting examples. Here are the exact things insurance blockchain startups can do.
Blockchain in Life Insurance
Like AI, blockchain can facilitate dealing with life insurance. In the case of this technology, its main strength is providing extra cost-effectiveness.
Smart contracts effectively track and deal with insurance on the micro-level, thanks to its regulated decentralization principle. As another dimension, the devices from the Internet of Things (IoT) world can assist insurers in tracking threats and preventing frauds.
Customer Engagement
One of the main problems at the stage of data collection is the unwillingness of clients to give sensitive answers to insurance agents. Blockchain can assist you here.
By guaranteeing higher protection and greater control over personal data, the technology encourages clients of insurance companies to share their information freely. You can request it as Know-Your-Customer (KYC) data service, where clients not only share identity information on a smart contract basis but also re-use it for faster and safer verification in other companies.
Blockchain in Auto Insurance
The technology can bring the payouts on auto insurance to the next level. For example, in the case of a car accident, both sides will get the necessary information to build trust: a client will get an immediate payout, while the insurer will see that the car is repaired by a licensed service provider.
In contrast to traditional models, blockchain can do it faster and through a credible network, which significantly increases speed and customer satisfaction.
P2P Insurance Operations
Smart contracts can increase customer satisfaction with insurance services when it comes to immediate payouts and claims handling. This use case is implemented by P2P flight insurance from InsureETH.
The startup offers software that scans flight information from verified sources and provides automated insurance coverage for a delayed or canceled flight.
This way, the insurance company and the client can save time and nerves during appointments and handling extra paperwork to get compensation.
Greater Cost-Effectiveness
Blockchain can save insurers money on various stages of the working process: while identity verification, checking contract terms, reporting claims, and collecting data from third parties.
In this context, it can cover the tasks normally handled by several executives in a firm and reduce the negative effect of a possible human mistake to a minimum.
Main Challenges of AI and Blockchain in Insurance
In practice, AI and blockchain complement each other: while blockchain offers advanced tools to gather information, AI can process and analyze it effectively. Nevertheless, many companies face severe implementation problems while trying to apply them both simultaneously.
In theory, the technologies sound like a brilliant idea ā but itās not easy to apply them smartly. Thus, first and foremost, itās important to find a reliable vendor who can introduce AI and blockchain skillfully.
AI Limitations and Implementation Problems
To work in a satisfactory manner, AI needs lots of data. If your insurance company is not accustomed to collecting masses of information from clients, AI tools will have nothing to analyze and provide insights from.
In this context, itās important that all this data is closely linked to both organizational and customer needs, meaning that information should be both relevant to insurance company activity and be about your client.
If you offer life insurance, itās important to clarify all the risky things your client does. But checking the breakfast preferences is not a relevant question in the survey.
Blockchain Limitations and Implementation Problems
Blockchain needs certain pre-defined conditions too. Like AI, blockchain reveals its best in complicated transactions that involve numerous parties and complex reporting.
If your insurance company relies on direct transactions and has a trusted intermediary youāre totally satisfied with, you donāt need this technology. Moreover, blockchain can bring you problems in terms of scalability, safety, and standardization.
In particular, itās not recommended to implement it for all your financial operations at once ā as its consensus-based validation is not adapted yet to fast growth.
Besides, specific cyberattacks and the need to develop standards from scratch also call for taking a wise approach and switch to blockchain step-by-step and at a moderate pace.
Insurance Industry Limitations and Implementation Problems
In addition to technological complexity, the insurance industry itself is not totally ready to switch to AI and blockchain. Here, the main problems refer to data collection, the power of traditional approaches, and prejudices towards new āunknownā technologies.
Considering the essential need for cooperation during the early implementation stage, these factors can become a severe obstacle and the main reason for failure.
Among the stakeholders whose involvement is critical, consider C-level executives, tech startups, regulators, and customers. To facilitate the process, attract a software development consultant from a reputable company.
How to Implement Blockchain and AI in Insurance
If you need consultation on the need and perspectives to implement AI and blockchain in your business, feel free to contact us! We, at Intellectsoft, can recommend and build for you the requested solution and offer a wide range of extra custom insurance software development services.
You can choose the one you need by yourself or after talking to our consultant. Contact our experts and find out more about AI and blockchain technology in insurance and how your insurance company can start benefiting from them today!
The hospitality industry depends a lot on keeping customers happy, but itās 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 readingāweāve got some answers.
Customers today have so many options that getting their attention is a real challenge. Itās not easy to make them choose your business over others. What worked 10 years ago doesnāt 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, weāll 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, weāll take a closer look at todayās biggest challengesāand, more importantly, how technology can step in to help. Letās 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 weāre 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 beginningācollecting, 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 youāre 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 technologyās 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 teamās 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 isnāt about thatāitās about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new āgolden standards.ā Technology is here to assist staff in listening to and collecting customer insights from data.
Letās 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 residentsā 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 staffā 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; itās 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 businessās 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 specialāitās 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 āwowā moments that guests wonāt 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. Theyāre 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 theyāll 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 guestsā preferences, making their stay more comfortable.
With tech-powered personalization, youāre 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 clientās 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, weāve 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, youāre 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. Itās 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? Weāre here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesnāt 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. Hereās 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 aroundābuilding 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, weāre 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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