Personalized insurance policies for today’s information hyper generation; AI is enabling ‘smart liability profiling’ of consumers with data collected from sources like health sensors, automobile sensors / telematics systems, smart home sensors informing high levels of personalization.

Digital savvy millennial consumers prefer simple, personalised policies, transparent processes and services that are just clicks away - accessible from the convenience of their smart phones and manageable with virtual assistance than requiring physical movement or manual work. Semi automated claims & settlement processing using Blockchain, for example - could bring in radical transparency and faster help to genuine victims / survivors in need of help. This requires traditional insurance companies to transition from being a policy-centric business to a customer-centric, digital-first business.

Research shows that about 23% of consumers struggle to clearly understand insurance policies and as a result they lack trust on the insurance provider / agent / broker because of hidden agenda / intent / focus on making an immediate sale, than creating value. Also, 47% of insurance holders feel frustrated with the paperwork, 39% find the policies not completely addressing their needs, 35% have faced issues during claim processing.

More data you can have of the modern day consumer - by gathering the right behavioral signals can help insurance policy providers to deeply personalize the insurance cover and the premium tailored to meet the needs of that individual. AI powered Intelligent sensing technologies and predictive analytics capabilities when integrated with the legacy business intelligence systems in the right way could potentially address some of the most pressing pain-points of insurance holders and providers.