In 2020 AIA Group created our three-year corporate strategy - Ascend 200 – which was underpinned by a $1bn investment in Technology, Digital and Analytics (TDA). Since then, we have been systematically transforming AIA into a more customer-centric, world-class, digitally-enabled insurer.
TDA is re-engineering how we serve our customers, reshaping how we innovate and redefining our access and reach to help more people with their financial and health protection, while creating significant competitive advantage and return on investment over the long term.
The pace of transformation has been remarkable. In less than two years, AIA has transformed from a 100-year-old legacy insurer into a customer-focused, digital-first business powered by AI and analytics. Interactions are rapid and seamless, with almost all processes automated and virtually no human intervention. Turnaround times have gone from days to minutes while providing intelligent service and incredible personalisation to our customers.
The universality of our innovation is key to our success as we adopt a systematic and agile approach to TDA transformation by taking best practices from one part of the Group and adapting them across our other businesses.
Examples of how Analytics and AI are powering innovation:
1. Implementing AI-driven underwriting to simplify the customer journey, resulting in more sales and enhanced efficiency.
Applying for medical insurance can be a time‐consuming and complex process for
customers, with multiple forms to complete. AIA knew it needed to simplify and
shorten this process to attract customers and provide a better customer
experience.
Several of our key markets are implementing AI applications, with the potential to scale across the group. In three markets – Singapore, Malaysia and Indonesia – our Existing Customer Marketing (ECM) Pre-Scoring approach uses predictive analysis to improve the underwriting process. By incorporating better risk assessments, we improve the Guaranteed Issue Offer (GIO) and Simplified Issue Offer (SIO) to our customers.
- The approach was relatively new to the business and has radically transformed our underwriting process.
- It has achieved operational efficiency by reducing the underwriter’s workload and increasing STP ratios.
- Most importantly, AI-driven underwriting is improving the customer experience with a simplified customer journey, compelling sales propositions and attractive GIO/SIP product offers.
- In other markets, we are simplifying underwriting rules and eliminating unnecessary requirements from customers, supported by AI-decision-making capabilities.
o In Mainland China, 75% of new business applications were underwritten automatically by our AI-powered systems.
o In the Philippines, we have delivered 99.9% underwriting accuracy using AI and supported end-to-end customer onboarding in just 20 minutes.
2. Using AI and automation to innovate the buy, service and claims experience.
The automation of our Buy, Service and Claims straight through processing (STP) has reduced manual intervention and enabled immediate coverage, claim and response for customers. By December 2022, 63% of claims were settled on the same day, 93% of claims were paid digitally and 70% of all customer interactions across 18 markets are straight-through-processed (STP), the highest in the insurance industry.
- In Thailand: we have an 80% STP rate for outpatient medical claims.
- In Singapore: 98% of claims are auto assessed, 60% with no human intervention and paid within 24 hours.
- In Korea, we’re implementing an AI-based machine learning model to enhance claims adjudication accuracy and improve straight-through processing. We have automated claims adjudication for 94% of in-scope A&H claims while maintaining around 0.4% claims leakage (false positives). This drastically streamlined process means customers receive a faster decision and payment (from three days to 20 minutes), improving the overall experience while mitigating fraud, waste and abuse (FWA) risks.
- As well as creating a best-in-class experience for our customers, our use of AI Claims is the first operationalisation of an AI solution for AIA.
3. Using analytics and AI to innovate the agency experience.
From using AI to recruit and train agents, to supporting them with selling and helping them manage performance, analytics and AI are transforming the agency experience, specifically:
- In 2022, 80% of agents were onboarded by iRecruit, our digital recruitment platform.
- AI helps match the right agents with customers, and analytics arm agents with data-driven insights to help sell better quality, more personalised products.
- The use of analytics and AI increased leads by nearly 30% in 2022 compared to 2021, and the quality of leads improved. Agents are better equipped to provide customers with more tailored, relevant services, treating them as individuals, not a number.
NOTES:
The Innovation line of business box only allows one choice. However our innovation covers Health and Life Insurance.
Submission is from AIA Group, based in Hong Kong. The entry covers Asia-Pacific.
