Brendan McLoughlin, President of e123, recently participated in an executive education course at the Massachusetts Institute of Technology on Artificial Intelligence (AI) and its implications for business strategy. This is the latest in a series of blog posts where he shares some of the insights he gained and how they apply to health insurance distribution.
AI is not a “Nice-to-Have” Tool – Make It Essential
Open enrollment is like the Super Bowl of health insurance marketing, but many companies still treat AI like a benchwarmer. If you’re only using AI as a peripheral tool to handle small tasks, you’re missing the point. Take a page from Covered California’s playbook: they’re using Google’s Document AI to streamline document verification for over 50,000 applications a month. That’s not a “nice-to-have”; that’s mission-critical support for the enrollment process. AI should be an integral part of making your operations smoother and faster, helping applicants get through the process without the usual headaches.
Don’t Just “Personalize”—Hyper-Personalize
“Personalization” is a buzzword everyone’s throwing around, but let’s get real. This goes beyond sending generic emails to demographic groups. AI can segment prospective members into specific personas based on real behaviors, like how often they interact with your site or the types of plans they browse. With AI, you can hyper-personalize your outreach so you’re not just speaking to a broad group of “young families” or “seniors.” You’re speaking directly to individuals with messages that actually resonate. This level of targeting is proven to increase engagement and drives conversions during the short, high-stakes enrollment period.
Chatbots Are Great, But Don’t Use Them as a Crutch
Yes, chatbots are helpful, especially during the rush of open enrollment. They handle routine questions, freeing up human agents to focus on more complex issues. But if your strategy starts and ends with a chatbot, you’re barely scratching the surface of what AI can do. Combine chatbots with predictive analytics that help agents anticipate member needs and proactively address concerns before they escalate. This “human-AI” combo improves the customer experience, builds trust, and keeps members from jumping ship for another insurer that seems to “get” them more.
Predict, Don't React
Let’s talk about predictive analytics. Every year, health insurance marketers wring their hands over churn – but AI can actually help you predict who’s likely to buy and who’s likely to leave. With AI analyzing patterns from past enrollment and claims data, you can identify at-risk members before they make that dreaded call to cancel. Instead of waiting for problems to arise, you can proactively reach out to offer solutions or benefits that meet their needs. Predictive analytics turn churn management from a reactive process into a strategic advantage.
Think Compliance Isn’t Sexy? Think Again
Compliance isn’t the most glamorous part of AI, but it’s essential, especially in a heavily regulated industry like health insurance. Open enrollment is prime time for increased scrutiny, and mistakes here can cost you. AI can automatically ensure all your marketing materials meet state and federal regulations, saving you from potentially costly slip-ups. Covered California’s setup helps them keep data secure and compliant without manual effort, and the data provided by a front-office core system like e123 can identify noncompliant agents before they lead to DOI complaints. It’s the kind of behind-the-scenes magic that makes everything else work better.
The Real Takeaway: AI is Your Competitive Edge, Not Just a Cool Tool
Here’s the bottom line: AI isn’t just some fancy add-on. It’s the lever that can take your open enrollment strategy from average to extraordinary. If you’re not using AI to improve every touchpoint – from lead generation and customer service to compliance and retention – you’re giving your competitors the upper hand. AI should be embedded deeply into your strategy, not an afterthought.
Conclusion
So, if you’re a health insurance marketer, now’s the time to get your AI game plan in place. Start small if you must, but think big. Make AI the heart of your open enrollment strategy, and watch how it transforms not just your process, but your bottom line.
Want to learn more about e123 and the future of AI in insurance distribution? Get in touch here.
For prior posts in this series, click here or below: