Customers are increasingly drawn to products and services that reduce complexity, are easy to engage with and are offered by businesses that build trust.
When customers’ needs are met by businesses that display an open, friendly and transparent culture and consistently deliver service at every touch point, they jump on board quickly. These trends seem to apply across all sectors, including insurance, and our niche world in strata will likely be no exception.
As we learn to adapt to this rapidly evolving landscape, we must carefully consider how we meet the challenges presented by these evolving customer expectations and effectively harness technology without taking on unintended risks.
Developing innovative solutions to better protect people and property in strata communities is a worthy aim. The prize of being equipped to deliver superior service and reduce accidents and claims through more effective risk mitigation appears to be within reach.
What could possibly go wrong?
The rise of Artificial intelligence (AI)
Insurers are challenged to manage risk pricing and model and adapt settings with an eye on the future. This isn’t easy to achieve consistently, but emerging technologies may help and offer many potential benefits to those willing to embrace the change they bring.
But AI isn’t new in insurance. It’s already used to increase productivity, reduce costs and enhance the overall customer experience.
- Customer service and support
- Claims processing and fraud detection
- Personalised policies and pricing
- Risk mitigation and loss prevention
- Data analysis and predictive modelling
AI models can simulate future scenarios, enhance the accuracy of risk estimation and drive better pricing. They can also identify false claims more effectively.
More broadly, the ease of access and use of generative AI tools is rapidly driving its adoption and rate of change. Used to its full potential, AI could direct the insurance industry toward a more customer-centric, data-driven, and tech-enabled future.
AI and strata building management
Technology and AI are already being positively integrated into the protection of strata properties, realising immediate benefits. Intelligent building technologies, renewable energy and data-driven decision-making allow strata managers to mitigate risks, reduce costs, and ensure the long-term sustainability of properties.
- Rapid response: Technology is helping to mitigate risk with intelligent building solutions. Networked devices installed in buildings can detect anomalies and potential hazards like water leaks, and trigger alerts to strata/building managers and residents so they can respond quickly, minimising damage and repair costs.
- Sustainable energy: Renewable energy sources, like solar power, offer strata communities a sustainable and cost-effective approach to energy management. A decreased reliance on grid electricity means cheaper utility bills and a lower environmental footprint. Smart energy management systems also enable real-time monitoring and optimisation of energy consumption. What’s more, advances in battery storage and charging, particularly for electric vehicle infrastructure, are allowing strata communities to enhance their resilience to power outages and reduce their reliance on traditional energy sources.
- Hazard detection: AI-driven predictive maintenance is transforming how strata properties are managed and maintained.
- Drones with cameras and sensors take aerial images and videos of properties. AI software reviews the images and videos to identify anomalies before generating a detailed defect report, removing the need for someone to go onto a roof for maintenance or damage assessments.
- Building systems hold a vast amount of data that AI algorithms can use to anticipate equipment failures and maintenance needs before they occur. This minimises downtime, extends equipment lifespan and reduces maintenance costs. Strata managers can also use analytics to optimise resource allocation and prioritise maintenance tasks.
- Improved security: Security is essential to strata owners and residents. Smart access control systems, video surveillance cameras with facial recognition technology and AI-driven threat detection algorithms all enhance security. They can identify suspicious activities, unauthorised access attempts, and potential security breaches as they happen, enabling quick responses and interventions.
AI and strata community management
AI can also be a powerful tool for improving the strata owner experience.
- Improving response time. Chatbots can manage routine enquiries such as maintenance requests and billing enquiries, removing the burden from strata managers and allowing them time to focus on more complex issues.
- Personalised communication. Using AI algorithms to analyse usage patterns and behaviour means strata managers can produce more targeted messaging and notifications for owners and residents. For example, they might identify owners at risk of missing a payment and provide timely reminders.
- Increased service satisfaction. By analysing data like maintenance requests, complaints and feedback, AI algorithms can identify areas of improvement and help strata managers make more informed decisions about their operations and address any satisfaction issues before they become big problems.
A word of caution
While AI integration is essential for business growth and investment, its limitations must also be considered, particularly concerning privacy, data security, and regulatory compliance.
Business leaders’ most common concerns are ethical issues surrounding AI decision-making, the absence of robust regulation, and cybersecurity.
The more sophisticated a business is in its AI usage, the more critical it is to have a formal structure and governance, like a privacy and data council. This governance would review each opportunity and ensure the responsible AI element is considered.
The human angle
Technologies are undoubtedly reshaping the world, but people are still the true drivers of change.
A recent Salesforce survey of 11,000 employees worldwide found 97% of them wanted to increase their AI skills. This highlights the importance of developing a skill strategy and implementing a generative AI usage policy to help retain those who want to learn and drive your business transformation.
By examining how to leverage new technologies and focusing on talent management, insurers and strata managers can develop teams with the right technical capabilities, empowering existing employees to upskill and helping the entire workforce adapt and embrace change.
