Benefits of Using AI Chatbots in Insurance

Today, chatbots are enabling new efficiencies by resolving thousands of queries simultaneously. As new technologies make bots more intelligent, their applications in the insurance industry are bound to increase in the coming years. With the help of chatbots, insurance companies can explain complex products to their customers, improve sales, and drive brand engagement.

Although AI initiatives in the insurance industry are in their infancy, Accenture estimates that big investments in AI can increase the annual profitability of insurers by 20%. Chatbots will find their way into the insurance world with more AI advancements. They improve customer experience and speed up the claims process. This blog post explores the new ways in which chatbots are transforming the insurance industry.

The global rise of chatbot popularity

There are several factors that fuel the proliferation of chatbots.  A few of them are the advancements in AI and related cognitive technologies, the rise of messaging apps, a fascination with conversational user interfaces, and a wider reach of automation. The global chatbot market is expected to reach USD1.25 billion by 2025, growing at a CAGR of 24.3%.

Leading enterprises see chatbots not only as a means of reducing operational costs but also enhancing the customer experience. A 2017 report says, 41% of businesses have implemented chatbots or have prepared cognitive AI technologies to be implemented soon. It includes 34% of businesses who have already launched a pilot prototype. In another study, one-third of AI start-up founders said that chatbots would be the top consumer application over the next five years.

How Chatbots add value to Insurance Companies

Chatbots are used for a different sort of tasks, however, finding the perfect fit for your industry is very important. Here are a few basic tasks where chatbots can help in the insurance industry:

Policy Queries

Insurance policyholders don’t remember every little information an insurance company’s policy offers them. Often, they find it difficult to navigate through the policy documents to find the required answers. A policyholder might want to know whether or not their spouse is covered under the current insurance policy. Someone might want to know the list of hospitals that are covered under the cashless scheme. In such scenarios, they often reach out to customer service for answers. People, these days prefer to just send their queries to a bot rather than go through the effort of calling someone. A bot can easily assist customers to find answers to their questions, instantly.

Filling a Claim

Chatbots can help insurance policyholders to quickly check their existing coverages. They can teach how to file insurance claims and track claims status. With no paperwork, insurance companies can improve customer satisfaction by accelerating the claims procedure. However, the overall process duration varies with the type of claims, but, chatbots can certainly lessen insurance wait times.

Customer Service

Customers can communicate with a chatbot in a way similar to an online conversation with a live customer support executive. Since many chatbots use NLP methods, they can analyze customer’s queries and deliver an accurate response. Customers have a common concern about the delay in response due to the use of IVR systems. These systems ask the customer questions and route the calls based on the customer’s responses. However, a chatbot can be used in a similar way, but in a more efficient manner.

New Policy Suggestions

Insurance companies are gradually using AI to sell policies and assist customers with insurance advice. Since chatbots communicate through textual or auditory methods, they have started replacing humans at insurance firms. ICICI Lombard is using a program called MyRA. It is used to underwrite two-wheeler insurance as well as fire and burglary insurance for SMEs and offer them quotations in real-time.

Future of Chatbots in the Insurance Industry

Gradual AI improvements will keep insurance companies at the forefront. As chatbots become smarter, they have ushered in new standards in efficiency and customer satisfaction for the insurance industry.

Although some insurers have reduced the tedious tasks in traditional processes, customers frequently experience long wait times even for a single request. Chatbots not only strengthen policyholders’ relationships with their insurers but also drive sales through touchpoints that span a range of digital channels.

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