Chatbots and Automated Insurers Rearchitecting the Insurance Gameplay

Insurance CIO Outlook | Tuesday, August 20, 2019

As chatbots and automation become smarter and more sophisticated, they bring in new levels of efficiency and customer satisfaction.

FREMONT, CA: Like any other industries, the insurance sector is also adopting technology to manage operations, including customer service better. As costumers become empowered through advancements in technology, providers will need to look for innovations to improve their relationship with policyholders. Given that, over the past years, insurance companies are rolling out chatbots powered by Artificial Intelligence (AI) with which insurers can find brilliant opportunities to meet customer expectations and turn communication into a dynamic two-way interaction. 

• Conversational Coverage

Legacy means of customer outreach, including websites and applications spoke computer language and were requiring users to travel through screens and menus through commands and clicks. AI-powered chatbots are speaking the human language through machine learning and natural language processing by understanding the context for an exchange to answer customer concerns and accomplish tasks. This approach in insurance, known as conversational coverage, is a proven method to meet the demands of modern customers such as personalization, engagement, and self-service. 

• Empowering Customers

Today's consumers expect the advanced level of services from their insurance providers, and they want to be able to engage with the brand on the channel of their choice. With chatbots that build a fruitful relationship between insurers and policyholders, firms can empower their consumers in a way that inspires loyalty and advocacy. Insurance bots can also educate customers on how the insurance process works, compare policies, and choose the best ones for them. As chatbots are mainly deployed as customer service tools, customer insurers are using the data provided by bots to influence the education programs. There is messenger bot that interacts through multiple choice questions or natural conversations and navigates users through the entire insurance purchasing process. Through this, users can speed through the quote process and buy insurance. Firms are using messenger bots to monitor prices and notify users when coverage drops in price.

• Claims Processing

Because of lengthy documents and tedious instructions, customers often develop a phobia at the idea of settling for the insurance policy. AI-based chatbots are being implemented by insurers to improve the current status of the claims process run by multiple employees. Powered by a AI touchless insurance claims process, insurers can avoid excessive human intervention and can report a claim, capture damage, and communicate with customers all by itself. An effortless process can help clients filling their claims without much hassle. AI bots can also review claims, policy details, and pass it through a fraud detection process before sending an instruction to the company to pay for the claim settlement. Applications with standard documentation can minimize human labor and thus saving on workforce and deliver instant customer assistance.

• Marketing Automation

Being a part of the competitive landscape, insurers need to invest in a vital marketing strategy which goes beyond the traditional cold calling approach. Age-old marketing methods are on the verge of extinction since the digital disruption started shaking the industry as a whole. With that, customers today seek sophisticated and extremely personalized services with custom sales techniques. Using the combined power of AI and natural language processing used in chatbots can give insurers the full access to the profiles of customers and prospects. Providers are analyzing this data to generate insights, accurate predictions on customer preferences and what exact products or services are to be added in the automated marketing activities.

Digital natives are continually looking for ways to make convenience, the new norm. Hence, there is no doubt in the fact that insurance bots can reap success in augmenting customer engagement with the help of AI technology. Insurers are initiating the process of adopting insurance bots to provide value-added services.

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