AI and BI to drive the Insurance Market

Manav Sachdev, Senior Principal Analyst at Gartner shares new insights about the pluses and minuses of digital approaches in insurance:

- Manoj Agrawal

Manoj Agrawal: Do you think digital marketing has reduced the cost of customer acquisition?

Manav Sachdev: Marketing through new age platforms (digital) has definitely increased the traffic for insurance companies. But conversions are negligible. Digital marketing is more educational in nature than targeted at customer needs. This is because the sparse customer data of Indian insurance companies and lack of backend system integration make it difficult to retrieve data. The available data is not good enough for contextual targeting.

Digital marketing vs regular marketing what is adding to the bottom line?

In the case of digital marketing, it will cost lesser than a TV advertisement. But there is a cost to be paid to Google or Facebook or any other platform doing the demography based marketing. To sum it up, it may not get you the desired revenues or conversions.

Which category is pushing down the cost effectively for customer acquisition - insurance companies themselves or insurtechs or insurance aggregators?