The Role of AI and Machine Learning in Bancassurance
Published on 19 de April de 2023

The bancassurance sector has been achieving good results in insurance sales for forty years, however, with the arrival of new technologies, the role of AI and machine learning in bancassurance is essential to maintain the efficiency of this sector. For this reason, the industry must take the step towards the incorporation of Artificial Intelligence, focusing on customer needs and prioritising data analysis to offer personalised and specific products.

In this article, you will discover the role of AI in bancassurance, how it will transform the working model, and what challenges it presents.

Transforming Underwriting and Risk Assessment

Historically, the underwriting and risk assessment of insurance policies has been done using data provided by the customer, resulting in inaccurate evaluations.

Today, however, with the use of artificial intelligence and machine learning, the customer’s underwriting process and risk analysis are changing completely. Through automation, customer time spent on underwriting is minimized, reducing costs and pricing policies accurately. Furthermore, with machine learning, risk assessment becomes more complete, thanks to the analysis of abstract information sources such as reviews or social media.

AI is revolutionizing bancassurance by enabling banks to innovate in underwriting processes, understand their customers, and achieve better sales results.


Improving Customer Services & Claims Management

Over the next few years, AI technology is expected to be fully incorporated into the industry, allowing access to a wealth of data that will change policy management and the customer experience.

Bancassurance customers are now looking to find a personalized and intuitive experience focused on their specific needs. Incorporating AI tools into the industry will allow most client interactions to be automated and efficient, responding to these new demands through personalized customer service.

In addition, artificial intelligence will completely change the way in which claims are handled, automating the processes, and reducing the time needed to resolve them, which also results in enhanced customer satisfaction. In fact, it is expected that by 2030 the costs generated by complaints will decrease, thanks to the incorporation of AI, by more than 70% compared to 2018.


Challenges For The Sector

Almost 80% of banks recognize the potential of AI for the sector. However, although AI has many advantages, some challenges must be overcome in its incorporation in bancassurance.

Mainly, these challenges have to do with the biases derived from the complexity of AI, which can generate customer trust issues when service errors arise. For this reason, the algorithm must be transparent, and companies must know it in depth, to know how to react to possible failures. In this case, the incorporation of professionals specialized in these new technologies is essential.

For overcoming the challenges of digitalization, banks must establish a cooperation strategy together with their insurance partner. In addition, they are supported by digital companies, such as InsurTech, to successfully incorporate AI.


In conclusion, the integration of AI technologies is transforming the bancassurance sector, from risk assessment and underwriting to customer service and claims management. In addition, as banks continue to adopt these technologies, further innovations can be expected which will benefit both the financial institutions themselves and their customers.

Discover with Wenalyze the benefits of incorporating AI in bancassurance. Contact us to find out all the details about machine learning.