We asked Bob Juracka, Vice President of Business Strategy at Rival.
In a myriad of ways! How will depend on what part, or parts, of the industry / distribution-system your organization operates in.For brokers, AI presents opportunities for enhancing client relationships, improving operational efficiencies, and maximizing revenue generation with existing, as well as with new/additional, customers. On a macro level, there are 2 types of ‘AI’ to be thinking about. Predictive and generative:
Predictive could tell you that teachers who drive white sedans are 60% more likely to buy an umbrella policy than hockey moms with red SUVs.
Generative could help you craft a communication to those Accord/Camry driving educators, that don’t currently have an umbrella policy, that will really resonate.
And it will be the job of your BMS to enable and facilitate your tapping into both types effectively, easily, and efficiently.
For MGAs, the element of risk evaluation presents additional opportunities to differentiate and create competitive advantage.Conventional underwriting guidelines might hold credence with some attribute – i.e. households with large breed canine pets have higher loss ratios than those without – which is factored into current pricing. Predictive AI can help risk-bearers go beyond simple correlation to identify an underlying causation… Perhaps families with big dogs are more inclined to also have trampolines in their yards (and if we look at the losses of those that don’t, they look exactly like the households that don’t have a dog at all). As an MGA with a modern management platform, you’ll be able to easily adjust your underwriting and rating rules accordingly, help your retail broker partners identify the prospects that will be receptive, and leverage generative AI to craft an effective communication (exploiting your new market-advantage).