5 Use Cases of Insurance Chatbots

More and more websites are now banking on conversational AI to attract, activate, and retain customers. Similarly, a chatbot is recommended for a pricing page, to not miss out on potential prospects because of their last moment second thoughts. According to research, the claims process is the least digitally supported function for home and car insurers (although the trend of implementing tech for this has been increasing). According to Progress, insurance companies can implement Native Chat to create chatbots for their company smartphone apps, allowing customers to communicate with the chatbot after downloading the app. Chatbots can gather information about a potential customer’s financial status, properties, vehicles, health, and other relevant data to provide personalized quotes and insurance advice. They can also give potential customers a general overview of the insurance options that meet their needs.

For these complex products, the general practice is for users to go through an agent who acts as an intermediate advisor. Within the insurance firm, AI solutions can help improve business operations in a number of ways. In a digital world where data security is paramount, compliance with legal regulations is a top priority. Security and compliance is often the first concern of professionals looking for these tech-savvy solutions. Insurance fraud is a significant issue that companies are constantly trying to solve. Advanced AI chatbots can analyze patterns and detect anomalies in claims data that may indicate possible fraud.

Conversational chatbots:

Additionally, they can focus on placing customer trust at the center of everything they do. For instance, Geico virtual assistant welcomes clients and provides help with insurance-related questions. They can use bots to collect data on customer preferences, such as their favorite features of products and services. They can also gather information on their pain points and what they would like to see improved. All companies want to improve their products or services, making them more attractive to potential customers. Fraudulent claims are a big problem in the insurance industry, costing US companies over $40 billion annually.

The paper categorizes tasks based on their exposure to automation through LLMs, ranging from no exposure (E0) to high exposure (E3). Many tasks in our sector have required our incredible ability to problem solve on the fly. We have to seek out just the right information for a particular situation and then communicate it to colleagues or customers in a digestible fashion. For a better perspective on the future of conversational AI feel free to read our article titled Top 5 Expectations Concerning the Future of Conversational AI. Health insurance is the number one sector benefiting from this technology.

Faster and efficient services:

Like every other industry, the insurance sector is also majorly running through online channels these days. But still, insurers face everyday challenges in gaining and retaining customers. Because traditional customer service methods involve a lot of waiting periods for insurance buyers. There should be no reason a chatbot cannot comprehend the phrase “my son broke my window” when a damage claim is being made. Although numerous insurance companies have mobile apps to help their clients, these are fairly limited.

Chatbots helped businesses to cut $8 billion in costs in 2022 by saving time agents would have spent interacting with customers. To learn more about how natural language processing (NLP) is useful for insurers you can read our NLP insurance article. Insurance companies can also use intelligent automation tools, which combines RPA with AI technologies such as OCR and chatbots for end-to-end process automation. After the damage assessment and evaluation is complete, the chatbot can inform the policyholder of the reimbursement amount which the insurance company will transfer to the appropriate stakeholders. Chatbots enable 24/7 customer service, facilitate ordinary and repetitive tasks, as well as offer multiple messaging platforms for communication.

Sensely’s services are built upon using a chatbot to increase patient engagement, assess health risks, monitor chronic conditions, check symptoms, etc. Every time a customer needs help, they turn to Sensely’s virtual assistant. This is one of the best examples of an insurance chatbot powered by artificial intelligence. Adding the stress of waiting hours or even days for insurance agents to get back to them, just worsens the situation. A chatbot is always there to assist a policyholder with filling in an FNOL, updating claim details, and tracking claims.

As we close our comprehensive series on ‘how to use AI bots for insurance,’ it’s time to look towards the horizon and envision what the future holds for insurance chatbots. The insurance industry has rapidly embraced these AI-powered entities, using them across a wide spectrum of operations. For insurance Companies, the biggest challenge in lead generation is identifying potential customers in a pool of leads, gratifying their needs, and engaging them effectively. Many insurance companies use AI chatbots to automate claim handling and customer support. These chatbots can also help in bringing down human errors in the application process. Before deploying a new chatbot, companies need to provide it with all the necessary data and feedback to improve its responses and ensure that it meets customer expectations.

Insurance is a tough market, but chatbots are increasingly appearing in various industries that can manage various interactions. These interactions include aiding with travel booking or utilizing medical records for planned visits and prescription delivery. Chatbots will transform many industry sectors as they evolve, shifting the process from reactive to proactive. HDFC Life Insurance realized the challenges in insurance and came to Kommunicate for an automated support solution.

By providing the appropriate recommendations at just the right time, they can promote or upsell insurance policies and push promotions within a certain time period. Nearly 7 out of 10 consumers stated they would provide their personal data in exchange for cheaper pricing from insurers. This enables clients to switch between communication channels without having to repeat themselves and makes information swiftly available to a human agent if necessary. This is why AI chatbots in insurance have shown to be the most effective ways to improve user experience while lowering operational expenses. The lower the danger of human mistake and the higher the savings in operating costs, the more efficient customer service is.

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