AI-powered Chatbot for the Insurance Market

AI-powered Chatbot Onboards Customers in under a minute, making Insurance Accessible for the Micro Market

Saphron is an insuretech company focused on creating solutions that make insurance radically accessible in order to increase financial inclusion in Southeast Asia. Backed by three industry players — Pioneer, Amihan, and CARD-MRI, Saphron created NAN.AI, a micro-insurance platform that allows on-the-ground, Nanay-agents (Nanay is the Filipino term for Mother), to enrol new customers in under a minute.

The Case for Financial Inclusion in the Philippines

Millions of families have no access to any form of insurance across Southeast Asia. In addition, ASEAN families typically bear 35-75 percent of their total medical expenses. Compared to advanced nations such as Japan and the United States, out-of-pocket expenses range between 11 to 15 percent. This simply means that their protection coverage is not adequate. 

In the Philippines, there is only a 1 percent insurance penetration rate in spite of a workforce of nearly 45.4 million Filipinos. Many families are ill-prepared and left without protection against emergencies such as accidents, climate-driven disasters, and hospitalization. Most are forced to borrow money from relatives, friends, or from other sources, often at steep interest rates, thus locking them in a cycle of debt. 

Providing protection for low-income families and individuals is a part of Saphron’s mission of financial inclusion.

The Burden of KYC is with the Customer

The Know Your Customer (KYC) process is a requirement for opening a new bank account. Banks must comply with KYC regulations to limit fraud. However, most banks’ customer onboarding processes are outmoded (paper-intensive and manual), redundant, and time-consuming. On top of these, there is no transparency over the usage of customers’ data. From the customer’s perspective, KYC is a slow and complicated process. Banks lose customers even before they can onboard them.

Accessible Insurance through Conversational AI-powered Chatbot

A major roadblock to financial inclusion is the lack of capacity and sustainability to serve the mass market in far-flung areas, where the means of availing financial products and services is a challenge. 

To solve this, Saphron built NAN.AI, which runs on Facebook Messenger to transform the onboarding experience for customers. 

NAN.AI combines AI and Natural Language Processing (NLP) technologies and a conversational chatbot that is connected to an inventory of products. NAN.AI offers life-like interactions via the chatbot, which helps to quickly scan and process customer application documents, automatically create insurance quotes, and initiate claims within a few minutes. 

With NA.NAI, Nanay agents could enrol their clients through Facebook Messenger in under a minute. The platform also helps in significantly increasing the number of covered individuals in these markets.

Tomorrow’s Technology Today

Signing up for insurance became faster and with a lower barrier for entry. The solution has also opened up CPMI’s coverage to a much wider market- the number of enrolled clients grew exponentially, from 995,000 in 2014, to over 18 million by the end of 2018. The growth in business was also the result of the training and efforts of the Nanays, who served as the local company representatives and financial advisers in their communities.

Using the NAN.AI platform, those at the bottom of the pyramid now have access to micro-insurance for Life, Health, and Property. 

Saphron, now equipped with an AI-powered chatbot, continues its pursuit of reaching out to more markets to make mass financial inclusion a reality. Digital transformation in the insurance industry is driven “by working with partners like Amihan, which believes that inclusion through technology can effect positive change in business and in society.”