AXA leverages AI and data analytics to boost revenues in Hong Kong
HEALTH insurance providers are constantly looking for ways to produce and sell policies that are personalized to make sure that the coverage offered is consistently central to the customer’s health conditions.
Doing so allows insurers to make sure that customers benefit from the coverage offered while also bolstering their revenues.
AXA is no exception as the company has been exploring how artificial intelligence (AI) and data analytics capabilities can help take its health insurance products to the next level.
This in-line with the company’s efforts to search for innovative solutions to boost its digital efforts and strengthen data strategy in an investive effort.
At a hackathon that the company recently hosted, 19 teams from 10 countries were invited to share ideas and develop prototypes of products that would address the constantly changing risk of health.
The winning idea was a digital insurance solution – a mock-up mobile app – named ‘Pill Pay’ which can target customers with chronic illnesses.
Customers can upload videos of them taking their pills — which would be accessible by their doctors — to motivate disciplined medication intake.
The mobile app will see the deployment of AI and data analytics tools when these technologies analyze video feeds uploaded by customers.
Both technologies would be leveraged alongside facial and object recognition technology to authenticate data from the video feeds to ensure adherence to medical instructions.
AXA also plans to use data analytics to work out a suitable insurance premium based on the customer’s efforts to take care of their health.
This is because customers with chronic illnesses who do not adhere to medical instructions always end up being hospitalized, costing insurers a fortune.
Through ‘Pill Pay’, insurers can collect relevant, valuable data and access in-depth analysis, effectively making it possible to create personalized insurance policies.
“Traditional insurance is, if something happens to you, we pay for the medical treatment. The new way is, how do we prevent you from falling ill in the first place. If you lead a healthy life, it also benefits us,” said AXA Chief Data Officer Ashok Krishnan.
Upon realizing the power of smart digital solutions and data analysis, AXA plans to invest over US$28 million in AI, data tools, and other relevant technologies.
With more insurance companies leveraging advanced capabilities and embracing data-driven technologies, it is expected that the nature of insurance will change to the benefit of both, customers and insurers.
Other companies can wait and watch while they lose revenue opportunities, or pump up their digital efforts to stay ahead in the market.