·
2 minute read
Brendan McLoughlin, President of e123, is participating in an executive education course at the Massachusetts Institute of Technology on Artificial Intelligence (AI) and its implications for business strategy. This is the first in a series of blog posts where he shares the insights he is gaining and how they apply to health insurance distribution.
In recent years, artificial intelligence has become a buzzword across industries, promising to revolutionize almost every aspect of our lives. From autonomous vehicles to personalized recommendations on streaming platforms, the applications of AI seem endless. However, amidst the hype, many question whether AI is truly for real and how it might affect specific sectors, such as health insurance sales and marketing.
AI's Realness:
Let's address the first question: Is AI for real? The short answer is yes. AI has already demonstrated its capabilities in numerous domains, ranging from natural language processing to image recognition and predictive analytics. Companies like Google, Amazon, and Facebook have heavily invested in AI research and development, integrating it into their products and services. Similar to e-commerce in the 1990’s, AI is an established tool that, while still in its infancy, will permeate every aspect of business operations over the coming years. AI should not be thought of as a special project or separate reporting system. Rather, it should be considered a tool that, when intelligently deployed across all of a business’ activities, will empower significant advantage and growth for an organization.
In healthcare as a whole, AI is already showing immense promise in diagnosing diseases, predicting patient outcomes, and streamlining administrative tasks. For instance, AI-powered chatbots can provide round-the-clock assistance to patients, reducing the burden on healthcare providers. Moreover, AI algorithms can analyze vast amounts of medical data to identify patterns and insights that humans might overlook.
Impact on Health Insurance Sales and Marketing:
Now, let's delve into the second question: How could AI impact health insurance sales and marketing organizations?
Personalized Marketing - AI enables health insurers to tailor their marketing resources to specific downline partners, customer segments, geographies and times of year. By analyzing past and current sales data, AI algorithms can identify areas to focus marketing spend in real time. This analytical approach will enable carriers and marketers to adjust their focus and maximize sales continentally during the peak AEP/OEP periods.
Intelligent Commissions: The right commission plan at the right time can motivate agent behavior and dramatically increase sales. Carriers and marketers can leverage AI-driven predictive analytics to determine optimal commission models for new product launches, entrance into new geographies, and the best performing sales strategies during the all-important AEP/OEP period. Armed with this insight, marketers can customize and adapt commission schemes to achieve sales objectives.
Sales Compliance - AI can help carriers and insurance marketers assess and mitigate risk in their distribution network more effectively by analyzing vast datasets and identifying emerging threats. Machine learning algorithms can detect patterns of fraudulent behavior, monitoring charge backs, rapid disenrolls and unusual sales behavior to provide an early warning of non-compliant agents or agencies.Conclusion:
In conclusion, AI is not just a futuristic concept; it is a tangible reality that is already making an impact on health insurance sales and marketing organizations. Neither is it a special project that requires creation of a standalone development effort. By harnessing the power of AI-driven analytics, automation, and personalization, insurers can integrate this powerful tool into their daily operations, enhancing customer engagement, improving timely decision making and reducing compliance risk. While the full extent of AI's impact on the health insurance industry may take time to materialize, the potential benefits are undeniable. As technology continues to evolve, embracing AI will be crucial for insurers seeking to stay competitive in an increasingly complex landscape.
