press release

Machine learning and understanding human psychology – act now or risk being extinct

At today’s Insurance Times Innovation and Disruption event in London, Jon Mansley, Head of Digital Strategy for LV=, is talking to attendees about how businesses use human and machine learning to deliver an exceptional customer experience. We caught up with him to find out more about the topic and to understand what LV= is doing.

The role of any organisation – be that a retailer or an insurer like LV= - is to provide its customers with the products and services they need. Key to achieving this is having a better understanding of how the human brain works so that we can meet the needs of our customers. However, with technology and online purchase now playing a prominent role with consumers’ daily lives, how exactly do we get machines to interact with humans and deliver an exceptional service?

"Essentially, we need to go back to basics. When it comes to buying a product or a service people want to be reassured that they are buying the right thing for them. They want to have a good understanding of what it is they are buying because they will then feel comfortable about that purchase. At the moment, many companies – including insurers – take the approach of “we have products, please buy them, but what we need to do is shift to an approach where we match he right products to the right people and complement this with a customer experience that is built for them as an individual.

The companies who are successful at doing this are the ones who are growing. Take for example, Amazon. When consumers buy something from them they use a number of techniques to provide reassurance about the products and services being bought. They provide recommendations from other buyers, make suggestions on what other products might be suitable based on that customer’s preferences and they also provide information on the savings being made - offering a benchmark on whether the customer is getting a good deal. When shopping with Amazon, it’s easy. Customers feel like they have made a very informed decision and when they come back they make it even easier by remembering them. However, at no point has the customer interacted with a human

  • Today, 42% of all consumers have made a purchase while using a chat bot process which is driven by artificial intelligence (AI). We’re also seeing more consumers use voice search such as Siri and Alexa.
  • Gartner, one of the world’s leading technology consultants, believes that by 2020 85% of all customer service interaction will be done by chat bots and 30% of web-browsing will be done by voice search.

 None of this is pie in the sky thinking. This is real and companies can no longer watch on the sidelines and hope they won’t be impacted by these changes because whether you work in retail, insurance or telecoms, customers are expecting the same thing from every company they interact with. And that’s exactly why we’ve partnered with TH_NK to create a digital transformation strategy and roadmap. Working with them, we’re trying to understand the psychology of our customers to ensure we’re offering them the right products and buying experience. We have a ‘best loved’ brand that is built around excellent customer service – both to our customers and brokers - and we need to understand how we translate this through a digital experience.

To help us do this, we’re working on customer journey mapping and systems thinking, both of which will help us understand why and how people purchase insurance. We know that our customers want a self-service process for claims and we also know that some of our products lend themselves to being digitised, so what we’re doing is building the process behind it so it aligns with what our customers want.

We need to understand this technology and make it work because this is how consumers expect to interact with brands. We’re working towards achieving this in 2018 and our customers will definitely see more of a tangible change by then.”

Press contact

Jon Sellors
Head of Corporate Affairs, Life & Pensions
020 7634 4447
07711 701806