UnionBank strengthens bancassurance offers through AI-enabled personalization

Insurance is one of the most valuable investments one can make toward a secure financial future. This is especially important amid the COVID-19 pandemic, where unforeseen events can happen at any time. Despite this uncertainty, many still do not have an insurance policy in their name, and this can be attributed to the fact that insurance is not a one-size-fits-all, which makes finding the right product challenging for customers and providers alike.

As a first mover in the country’s digital banking space, Union Bank of the Philippines (UnionBank) continues to introduce pioneering solutions that address the various pain points of customers when availing of financial services, improving the overall experience for them. In line with this, the Bank has been harnessing emerging technologies to help customers identify the insurance product that can meet their individual needs.

Leveraging its expertise in data science and artificial intelligence (AI), UnionBank has created an algorithm that better identifies customers who might need life security coverage through bancassurance products depending on their profile or background, and more importantly, find the right insurance product tailored specifically to them.

To make the latter easier, the Bank created semi-fictional profile archetypes based on existing customers, each with their own aspirations, pain points, challenges, and income levels that are unique to them. With the help of the AI algorithm, the Bank can better identify the archetype a potential customer may fit into, such as “Mom Savers” and “Young Spender,” among others, and proactively recommend insurance products that are more relevant to them.

“By harnessing AI, we have the ability to analyze data culled from various sources–customer profiles, and past interactions, for example—and provide tailor-fit recommendations on products and services that truly address our customers’ needs,” said UnionBank Executive Vice President and Head of Retail Banking Center Joyce Gonzalez.

The said algorithm is now being utilized in many of the Bank’s offers, notably through “Union for Life,” a bancassurance partnership with Insular Life that makes life insurance accessible to more people through UnionBank’s expansive branch network nationwide.

With the use of AI for identifying potential customers’ insurance needs, UnionBank is able to help provide insurance policies that are relevant to them wherever they may be in life, whether starting out in their careers, starting a family, or starting their retirement plans. Down the line, UnionBank sees the algorithm being used in even more complex processes related to its insurance offers, allowing deeper and more meaningful personalization for customers.

“UnionBank has always believed in the power of data science and AI to enable lasting positive impact not just on the lives of customers, but also on society as a whole. This is why we will continue to harness these and other emerging technologies in many of our products and services, including insurance,” said UnionBank Senior Advisor for Data and Artificial Intelligence Dr. David Hardoon. “This is all part of UnionBank’s overall goal of enabling inclusive prosperity by co-creating innovations for a better world.”

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Mommy Iris

I'm a lifestyle and mommy blogger from the Philippines. Pinay Ads was created to share bits and pieces of my life and my family. I have a wide array of interests that include entertainment, movies, music, gadgets, traveling, food, baking, and more. So, I hope you’ll stick around and enjoy reading!