What is Insurance Chatbots? + 5 Use-case, Examples, Tools & Future

A chatbot can support dozens of languages without the need to hire more support agents. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month. Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years.

In situations where the bot is unable to resolve the issue, it can either offer to escalate the customer’s request. Alternatively, it can promptly connect them with a live agent for further assistance. The bot responds to FAQs and helps with insurance plans seamlessly within the chat window. It also enhances its interaction knowledge, learning more as you engage with it.

What we found is that chatbots and intelligent virtual assistants (IVAs) are increasingly effective in key areas that require 24/7 assistance and quick responses—which, of course, includes healthcare. Across all industries, the survey found that most consumers (56.5%) find chatbots very or somewhat useful. Geico’s virtual assistant Kate (mobile’s AI-enabled chatbot) helps customers with policy questions and updates anytime. First and foremost, you need artificial intelligence to process large amounts of data. When we talk about an economic niche such as insurance, it becomes even more relevant.

This reduces the number of customers who abandon their purchase due to frustration. It allows computers to understand human language and respond in a way that is normal for humans. The conversation is not necessarily how they naturally communicate, but it should feel normal to make them feel at ease. By undertaking continuous performance management, you’ll ensure that your chatbot is actually adding value to your insurance operations – and the customer experience. It’s important to remember that chatbots are not a customer service cure-all. On the other hand, if you simply want to take FAQs and repetitive tasks off your support agents’ plate, a rule-based chatbot might work well enough for you – so long as you choose the right provider.

With the bot tightly coupled with your internal systems, you don’t have to worry about changing how you work or looking at disparate sources of data. The chatbot can be integrated with your internal CRMs or databases along with tools such as Health Sherpa, CompuLife, Ninja Quoter, eHealth, and more. In this blog post, we’ll explore some of the key use cases of conversational AI in insurance, as well as the benefits and challenges of implementing this technology. Yes, you can deliver an omnichannel experience to your customers, deploying to apps, such as Facebook Messenger, Intercom, Slack, SMS with Twilio, WhatsApp, Hubspot, WordPress, and more.

Five reasons why internal chatbots are good for your business.

With real-time and engaging interaction, they can effectively explain the added benefits and create compelling reasons that nudge the customer towards making these additional purchases. The revolution of AI and machine learning has seeped into every sphere of our lives, the insurance industry being no exception. The assistant can also send customers reminders about upcoming payments, and simplify the payments process on the customer’s preferred channel. French insurance provider AG2R La Mondiale has a chatbot created by Inbenta using conversational AI. By adhering to robust security and privacy measures, you’ll protect any confidential information that’s transmitted through the chatbot, instilling trust and confidence among policyholders. Insurers handle sensitive personal and financial information, so it’s imperative that you safeguard customer data against unauthorised access and breaches.

Projected savings for health insurance providers who shift one quarter of member digital interactions to self-service is $1.147M per million calls vs. $1.035M for property and casualty insurers. You can foun additiona information about ai customer service and artificial intelligence and NLP. Advances in conversational AI in the last few years chatbot use cases insurance have allowed chatbots and IVAs to provide a new level of self-service across industries. At the same time – as we showed above — health insurance members are increasingly accepting of handling their insurance needs through automated self-service.

This can help insurers to reduce their losses and improve their overall profitability. One of the ways AI can help with claims triaging is by using natural language processing (NLP) to analyse claims. NLP can help to identify key information in claims, such as the nature of the loss and the policyholder’s contact information. This information can then be used to determine the severity of the claim and the appropriate course of action.

Improving Health Insurance Chatbots with Conversational AI

Embracing the digital age, the insurance sector is witnessing a transformative shift with the integration of chatbots. This comprehensive guide explores the intricacies of insurance chatbots, illustrating their pivotal role in modernizing customer interactions. From automating claims processing to offering personalized policy advice, this article unpacks the multifaceted benefits and practical applications of chatbots in insurance. This article is an essential read for insurance professionals seeking to leverage the latest digital tools to enhance customer engagement and operational efficiency. Chatbots and virtual assistants powered by AI are helping insurers to provide round-the-clock customer support and answer common queries quickly. In underwriting, predictive analytics powered by AI can help insurers to assess risks more accurately and price policies accordingly.

AI chatbots can also assist customers with policy information, premiums, and coverage options. By providing customers with 24/7 access to information, AI chatbots can help reduce the workload of customer service representatives and improve overall customer satisfaction. When you integrate conversational AI into your communication channels, you’ll solve the siloed and frustrating communication experience that many online customers face. Imagine all your channels–both offline and online–are operating based on a single source of truth regarding your policyholders’ or prospects’ profiles. AI-powered virtual assistants ensure that different departments across different channels are unified to consistently provide quality customer experience.

In addition, the chatbot has helped FWD Insurance save $1 million per year in client support costs. The chatbot is available 24/7 and has helped State Farm improve client satisfaction by 7%. Chatbots reduce client frustration by providing an easy and quick manner of getting things done.

At its most basic level, conversational AI refers to technologies that enable computers to simulate human conversation. This can take many forms, including chatbots, virtual assistants, and voice assistants. As technology continues to advance, the insurance industry is constantly looking for new ways to improve its processes and enhance the customer experience. One of the most promising areas of innovation is conversational AI, which has the potential to revolutionize the way insurers interact with their customers. Chatbots in insurance can help solve many issues that both customers and agents face with recurring payments and processing. Bots can help customers easily find the relevant information and appropriate channels to make the payment and renew their policy.

That means that a Verint IVA can be deployed in a health insurance space and be effective on day one thanks to the pre-packaged intents that have been established. Looking ahead, we can expect to see continued investment and innovation in the insurance sector. As more companies adopt AI-powered chatbots, and other virtual agent solutions, we can anticipate even higher levels of customer engagement and satisfaction.

Insurance chatbots can also provide all the supporting details a new customer needs to sign up and proceed with the client onboarding process or help existing policyholders upgrade their plans. What’s more, conversational chatbots that use NLP decipher the nuances in everyday interactions to understand what customers are trying to ask. They reply to users using natural language, delivering extremely accurate insurance advice. AI chatbots can be fed with information on insurers’ policies and products, as well as common insurance issues, and integrated with various sources (such as an insurance knowledge base).

A Real-Life Use Case of Insurance Conversational AI

‍‍‍Read this article to learn what insurance chatbots are, what to use them for, and how they can benefit both your insurance company and your clients. In 2012, six out of ten customers were offline, but by 2024, that number will decrease to slightly above two out of ten. Chatbots increase sales and can help insurance companies automate customer conversations. In a normal office, a receptionist usually manages this and answers calls from clients and customers. By introducing a chatbot, insurance agencies can save time and focus on important tasks.

Phone calls with insurance agents can take a lot of time which clients don’t have or are not willing to waste. One of the major benefits of well-designed chatbots is they can answer questions fast and on point. Chatbots can offer customers a quote for their insurance without them having to spend time filling out long, complicated forms.

A growing number of insurance firms are now deploying advanced bots to do a thorough damage assessment in specific cases such as property or vehicles. Chatbots with artificial intelligence technologies make it simple to inspect images of the damage and then assess the extent or claim. Your business can rely on a bot whose image recognition methods use AI/ML to verify the damage and determine liabilities in the context. Instead of spending weeks completing paperwork, it’s enough to report the claim. Once the virtual assistant has received the information and searches for the relevant policy, it will automatically file a claim on a customer’s behalf. Thanks to this, users can communicate with companies across various channels with no need to reproduce themselves.

Better fire risk assessment is possible due to the use of data from connected devices, climate studies, and aerial imagery. Insurers can build models that can look at risks more closely at the individual property level. It has limitations, such as errors, biases, inability to grasp context/nuance and ethical issues. Insider also pointed out that AI’s “rapid rise” means regulation is currently behind the curve. It will catch up, but this is likely to be piecemeal, with different approaches mandated in different national or state jurisdictions. With this in mind, insurers should plan ahead for how they are going to use chatbots, especially at the outset.

CAI assistants have the capability to automate the claim process, making it a lot faster and more efficient. It can instantly access the customer’s information from the company database. It takes customers through the process of filing and obtaining claims more swiftly and seamlessly compared to waiting for a service representative. It enhances the customer experience while considerably lowering the time required for the entire process. IBM watsonx Assistant for Insurance uses natural language processing (NLP) to elevate customer engagements to a uniquely human level. This intuitive platform helps get you up and running in minutes with an easy-to-use drag and drop interface and minimal operational costs.

Receive and Process Claims

Once the appropriate policy is determined, CLARA can process the customer request and onboard the customer using OCR technology. During a roundtable discussion I mentioned an article I’d just written about big data, artificial intelligence and machine learning. I said as much as 80% of insurance underwriting will be automated before long.

In addition, multilingual customer service allows companies to increase loyal customers and reach far beyond the local market. Insurance companies, in turn, can reduce operating expenses and focus on other facets of the business. Since accidents and claims can occur at any time of the day, insurance has always been considered a 24/7 service. And in order to intake all these claims, for many years, insurers relied on night call centers. What’s more, by closely monitoring user behavior and analyzing data, insurers themselves can identify gaps and optimize internal processes to quickly fix them.

This advanced approach, integrating real-time data from sources like health wearables, keeps insurers abreast of evolving trends. The Generative AI’s self-learning capability guarantees continuous improvement in predictive accuracy. This also gives them a competitive edge in the market, as the providers of fair and financially viable policies.

Tokio From Tokio Marine Insurance Company

If you want to do the same, you can sign up for WotNot and build your personalized insurance chatbot today. As chatbots evolve with each day, the insurance industry will keep getting new use cases. As AI and Machine Learning become mainstream, the insurance industry will witness numerous functions and activities it can automate via advanced chatbot technology. With back-end information at the bots’ disposal, a chatbot can reach out proactively to policyholders for payment reminders before they contact the insurance company themselves.

This streamlines the policyholder journey and makes it easier for customers to get the help they need. Conversational AI can be used throughout the insurance customer journey, from marketing to claims. However, it’s important to start small and scale up as the chatbot becomes more accurate. We believe that chatbots have the potential to transform the insurance industry. By providing 24/7 customer service, chatbots can help insurance companies to meet the needs of today’s customers.

How to improve customers’ online experience in insurance

The modern client wants to be able to communicate with companies at any time of the day or night. Chatbots are available 24/7 and deal with queries in a fast and efficient manner. This technology is used in chatbots to interpret the customer’s needs and provide them with the information they are looking for. But, thanks to the power of AI, an insurance chatbot can evolve and be trained to handle an increasingly wide range of queries/tasks.

As the CEO and founder of one of the top Generative AI integration companies, I will also share recommendations for the successful and safe implementation of the technology into business operations. As the insurance industry grows increasingly competitive and consumer expectations rise, companies are embracing new technologies to stay ahead. Bots can be programmed and configured to address your customer’s insurance claims and also follow up with them on the existing ones. It can also prompt them for upcoming payments as well as simplify the payment process across the customer’s preferred channel. Chatbots facilitate the efficient collection of feedback through the chat interface.

Conventionally, claims processing requires agents to manually gather and transfer information from multiple documents. There are a lot of benefits to Insurance chatbots, but the real question is how to use Chatbots for insurance. This keeps the business going everywhere and allows customers to engage with insurers as and when they grab their interest.

AI algorithms can analyze vast amounts of data and identify patterns that are not visible to humans. For example, they can analyze a prospect’s social media activity, website behaviour, and email interactions to determine their level of interest and likelihood of conversion. This information can be used to assign a score to each lead and prioritize them accordingly. AI-powered fraud detection systems and damage assessment tools can help save time and money while improving customer satisfaction.

Chatbots create a smooth and painless payment process for your existing customers. You just need to add a contact form for users to fill before talking to the bot. Currently, their chatbots are handling around 550 different sessions a day, which leads to roughly 16,500 sessions a month. An AI chatbot can analyze customer interaction history to suggest tailor-made insurance plans or additional coverage options, enhancing the customer journey. Let’s explore how these digital assistants are revolutionizing the insurance sector. Therefore, success in the insurance industry depends on selecting the best development bot platform to deliver ideal conversational qualities that are trustworthy and scalable.

Chatbots are software programs that simulate conversations with people using unstructured dialogue. They are often used in the insurance industry to streamline customer interactions and provide 24/7 support. Acquire is a customer service platform that streamlines AI chatbots, live chat, and video calling. McKinsey predicts that AI-driven technology will be a prevailing method for identifying risks and detecting fraud by 2030. Chatbots helped businesses to cut $8 billion in costs in 2022 by saving time agents would have spent interacting with customers. Chatbots enable 24/7 customer service, facilitate ordinary and repetitive tasks, as well as offer multiple messaging platforms for communication.

For example, a drop-down list isn’t the best way to make users browse through the different insurance plans under a category. Similarly, a form with fields isn’t the most convenient option for users to get access to information on various insurance plans and their benefits. Obtaining life insurance can be a tedious task, and customers might have a lot of queries to even begin with. TARS chatbots are trusted by several global giants, including  Vodafone, American Express, Nestle, and Adobe. You can train your bot to get smarter, more logical by the day so that it can deliver better responses gradually.

• As chatbots evolve with each day, the insurance industry will keep getting new use cases.
• The undeniable success of AI Assistant solutions in enhancing customer experiences, scaling up support, and driving sales sets the stage for a transformative future.
• In addition, chatbots can proactively reach out to insurance customers to offer assistance.

These experts find out which pain points, challenges, and frustrations consumers have and what things they would like to see improved. For example, many can say that they don’t like to call a call center for assistance and they’d rather file a claim online. End-to-end integration makes it easy to deploy chatbots on top of popular instant messengers and other real-time sales channels. According to Statista, the size of the chatbot market in the banking, financial services, and insurance sectors is projected to have grown to $6,8 billion by 2030 as compared to $0,5 in 2019. No wonder because a chatbot is no longer just an interesting messaging interface but a “smart” tool for analyzing and offering products to the target audience. Today’s insurers are closely studying trends and appreciating the innovative potential of chatbots.

The bot then searches the insurer’s knowledge base for an answer and returns with a response. Similarly, if your insurance chatbot can give personalized quotes and provide advice and information, they already have a basic outlook of the customer. But to upsell and cross-sell, you can also build your chatbot flow for each product and suggest other policies based on previous purchases and product interests. Because a disruptive payment solution is just what insurance companies need considering that premium payment is an ongoing activity.

Chatbots also offer flexibility in managing payment methods, allowing policyholders to update their preferred payment methods or review payment history. This streamlined process not only saves time but also ensures accuracy, as the chatbot eliminates potential errors that might arise from manual input. The insurance chatbot market is growing rapidly, and it is expected to reach $4.5 billion by 2032. This means that the market is growing at an average rate of 25.6% per year. Besides, a chatbot can help consumers check for missed payments or report errors.

A great example of this is the Chatbot, which is short hand for an automated insurance agent in our market. AXA insurance provider leverages predictive analytics to anticipate claims trends and manage their reserves more efficiently. Fraud activity such as anomalies in claims data can be detected by AI algorithms. By doing this, millions of dollars can be saved from fraud cases; hence trust is maintained while financial health is upheld. Only by understanding the goals clearly and envisioning how a chatbot will be used can you develop the right solution, bringing true value to business. Define the value you want to offer, create a mental map of its effective implementation, and then build it into the design.

These ways range from handling insurance claims to accessing the user database. In essence, insurance chatbots can be viewed as versatile virtual assistants capable of helping all customers and stakeholders involved in the insurance ecosystem. By providing instant and personalised support, insurance chatbots empower potential policyholders to make informed decisions and seamlessly navigate insurance processes. Whether it’s answering questions about insurance policies, processing claims, or providing quotes, an insurance chatbot can be programmed to handle a wide range of tasks efficiently and accurately. A chatbot for insurance can help consumers file claims, collect information, and guide them through the process. Nearly half (44%) of customers find chatbots to be a good way to process claims.