Conversational AI for Insurance

Insurance Chatbot: Top Use Case Examples and Benefits

chatbot use cases insurance

Even if you haven’t heard the word “chatbot,” you’ve likely come across one while browsing online. Chatbots are computer programs that simulate conversations with customers and answer their questions. If you’ve ever participated in a live chat on a company’s website, you’ve probably interacted with a chatbot.

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. When a customer does require human intervention, watsonx Assistant uses intelligent human agent handoff capabilities to ensure customers are accurately routed to the right person. With watsonx Assistant, the customers arrive at that human interaction with the relevant customer data necessary to facilitate rapid resolution.

chatbot use cases insurance

This may involve obtaining explicit consent from policyholders, implementing data protection measures, and ensuring that data is not shared with unauthorized third parties. 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. As we navigate the complexities of financial fraud, the role of machine learning emerges not just as a tool but as a transformative force, reshaping the landscape of fraud detection and prevention.

Managing insurance plans

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. Based on the insurance type and the insured property/entity, a physical and eligibility verification is required. If you’re looking for a highly customizable solution to build dynamic conversation journeys and automate complex insurance processes, is the right option for you. Not only the chatbot answers FAQs but also handles policy changes without redirecting users to a different page. Customers can change franchises, update an address, order an insurance card, include an accident cover, and register a new family member right within the chat window. Here are eight chatbot ideas for where you can use a digital insurance assistant.

Ultimately, embracing chatbot technology empowers insurance professionals to meet evolving customer expectations, stay competitive in the digital age and foster stronger relationships with policyholders. Although they are mentioned in the same breath as AI, not all chatbots use AI in the traditional sense. Some chatbots are programmed to follow a script and can only respond to straightforward queries. These bots, often referred to as rule-based chatbots, are best used for answering frequently asked questions and basic customer service issues. Chatbots powered by AI use machine learning and natural language processing to adapt and learn from its conversations with customers.

chatbot use cases insurance

This AI-driven approach spots emerging opportunities, sharpening insurers’ competitive edge. Generative AI has redefined insurance evaluations, marking a significant shift from traditional practices. By analyzing extensive datasets, including personal health records and financial backgrounds, AI systems offer a nuanced risk assessment. As a result, the insurers can tailor policy pricing that reflects each applicant’s unique profile.

Customers can initiate a claim from the chatbot interface, submit the documents needed to proceed, and start processing the claim. You can use chatbots to help your customers and prospects book appointments with your advisors for a more in-depth analysis. Instead of going back and forth to fix a date and time, you can integrate your chatbot with your advisor’s calendar and simplify the booking process. Educational organizations can use chatbots as personal assistants to teachers to help students clarify their doubts. The age-old challenge in educational organizations is that providing one-to-one care to students is impossible.

Make sure all data privacy concerns are covered:

Chatbots can leverage recommendation systems which leverage machine learning to predict which insurance policies the customer is more likely to buy. Based on the collected data and insights about the customer, the chatbot can create cross-selling opportunities through the conversation and offer customer’s relevant solutions. The most obvious use case for a chatbot is handling frequently asked questions. A virtual assistant answers prospects’ and customers’ questions, triggers troubleshooting scenarios, and collects data for human agents to resolve complex issues. AI-enabled chatbots can streamline the insurance claim filing process by collecting the relevant information from multiple channels and providing assistance 24/7. This eliminates the need for multiple phone calls and waiting on hold, and it can also help to prevent claims from being delayed due to missing information.

Instant quotes and policy issuance also enable insurers to capitalize on customer interest and convert leads into customers more efficiently. Hanna is a powerful chatbot developed to answer up to 96% of healthcare & insurance questions that the company regularly receives on the website. Apart from giving tons of information on social insurance, the bot also helps users navigate through the products and offers.

However, it’s important to start small and scale up as the chatbot becomes more accurate. These digital agents answer questions, provide quotes, and even initiate claims at any time of day. This is a major improvement over traditional call centers, which are usually only available during business hours. We believe that chatbots have the potential to transform the insurance industry.

Embracing AI isn’t a bold move; it’s a necessary step towards the future of work in the insurance industry. And it requires significant behavior and mindset shifts for successful, sustainable transformation. The versatility of generative AI in the insurance industry is immense, and its power cannot be overstated. Restaurants can enable their chatbot to collect delivery orders, show delivery status, and even give tracking information straight from its interface. Check out how the apparel and fashion brand Apliiq uses Zoho SalesIQ to connect with their customers. It is against this backdrop that Conversational AI has emerged as a powerful tool for enterprises to engage and serve their customers.

It can also be used to create a report for a phone call made by an employee. It automatically transcribes the call and logs detailed information about customer interaction, such as the call duration, issues discussed, resolutions provided, and any follow-up actions required. However, the choice between AI and keyword chatbots ultimately depends on your business needs and objectives. With Engati’s eSenseGPT integration, you can answer a wide range of queries on the various policies, procedures, etc. You can resolve your customer queries within seconds, just by entering your data in our eSenseGPT and sharing a link to your website or Doc,or uploading a PDF Doc. Naturally, they would go looking for answers from agents who can guide them through different policies and products and suggest what would be ideal for them.

chatbot use cases insurance

They reap the rewards of AI advancements through practices like comparative shopping, swift claims processing, round-the-clock service, and improved decision-making. These innovations streamline interactions, expedite transactions, and empower individuals to make informed choices about their insurance needs. This data-driven approach not only enhances risk assessment but also fosters personalized interactions with customers, ultimately leading to improved customer satisfaction and loyalty. By 2030, the insurance sector will see transformative changes, enhancing the efficiency and personalization of its services. AI streamlines the insurance buying process, allows for real-time policy pricing and issuance, and transforms underwriting and claims with automated, data-driven assessments. These advancements facilitate faster, more precise risk management and fraud detection, significantly improving the customer experience and operational accuracy​.

It will catch up, but this is likely to be piecemeal, with different approaches mandated in different national or state jurisdictions. LLMs can have a significant impact on the future of work, according to an OpenAI paper. The paper categorizes tasks based on their exposure to automation through LLMs, ranging from no exposure (E0) to high exposure (E3). It took a few days for people to realize the leap forward it represented over previous large language models (known as “LLMs”). The results people were getting helped many realize they could use this new tech to automate a wide range of tasks. AI in investment analysis transforms traditional approaches with its ability to process vast amounts of data, identify patterns, and make predictions.

AI chatbots already know details such as a customer’s name, their policy details, and previous claims, making it easy to resolve their queries quickly without having the customer repeat information. Imagine a customer sending a picture of their car damages after an accident and your chatbot giving them a quote within minutes – that is the real power of AI in insurance. Chatbots can leverage previously acquired information to predict and recommend insurance policies a customer is most likely to buy. The chatbot can then create a small window of opportunity through conversation to cross-sell and up-sell more products. Since Chatbots store customer data, it is convenient to use data based on a customer’s intent and previously bought products with a higher probability of sale.

Whether your customers reach out via phone, email, a contact form, or live chat, they increasingly seek the convenience of self-service. Students can track their attendance and absence history straight from the chatbot. I am super excited about the AI developments in the insurance sector and look forward to seeing how it will continue to transform this ‘old and slow’ industry in the future. By analysing data from a variety of sources, including social media, news reports, and weather data, AI can help insurers respond quickly and effectively to disasters. For example, during a hurricane, AI can be used to predict where the storm will hit and which areas are most at risk.

From there, the bot can answer countless questions about your business, products, and services – using relevant data from your knowledge base plus generative AI. If you want a bot that can create a humanised experience, handle a variety of customer conversations, and provide the most advanced automated support – an AI-enhanced chatbot is the best choice. Automating these tasks through a chatbot will prevent your insurance agents from being overloaded with repetitive tasks/interactions, enabling them to dedicate more time to complex issues.

Once the appropriate policy is determined, CLARA can process the customer request and onboard the customer using OCR technology. Indeed, MetLife’s AI excels in detecting customer emotions and frustrations during calls. The tool guides employees to adjust their communication style in real time. Such an approach is particularly impactful in sensitive discussions about life insurance, where understanding and addressing buyer concerns promptly is vital. Anthem’s use of the data is multifaceted, targeting fraudulent claims and health record anomalies.

With the help of AI, we can now extract valuable insights from vast amounts of data, which would have been impossible to achieve manually. Overall, AI is proving to be an invaluable tool for insurance professionals. By helping to predict and mitigate risks, AI is making the world a safer place for everyone. Telematics works by using a small device installed in the car that collects data on driving behaviour, such as speed, acceleration, braking, and cornering. This data is then transmitted to the insurer, who uses it to calculate the driver’s risk profile and adjust their premium accordingly.

This is where AI-powered chatbots come in, as they can provide 24/7 services and engage with clients when they need it most. ChatGPT uses advanced natural language processing techniques to better understand and respond to human language. It has been trained on vast amounts of text data from the internet, allowing it to generate responses that are more natural-sounding and accurate. AI technologies can be integrated into training platforms to provide real-time coaching and support, improving interactions between employees and customers. Organizations can leverage AI insights to enhance employee performance, compliance, and overall workforce effectiveness. To effectively deploy the next best offer prediction models, insurers must ensure the availability of abundant customer profiles and attributes.

How AI could change insurance –

How AI could change insurance.

Posted: Thu, 23 Nov 2023 05:03:31 GMT [source]

You can train your bot to get smarter, more logical by the day so that it can deliver better responses gradually. It’s simple to import all the general FAQs and answers to train your AI chatbot and make it familiar with the support. It usually involves providers, adjusters, inspectors, agents and a lot of following up.

Other AIMultiple industry analysts and tech team support Cem in designing, running and evaluating benchmarks. With Acquire, you can map out conversations by yourself or let artificial intelligence do it for you. Let’s explore the top use cases and examples of how chatbots are setting new standards.

Navigating the Pitfalls of Generative AI in Insurance

This reduces the number of customers who abandon their purchase due to frustration. Chatbots can offer customers a quote for their insurance without them having to spend time filling out long, complicated forms. You can train chatbots using pre-trained models able to interpret the customer’s needs.

  • Your sales representatives can follow up with them later to know their needs and convert them.
  • Every business wants to grow its e-mail contact list, and the companies within the insurance space are no exception in this regard.
  • Also, if they have any queries regarding your product, your chatbot can pull up resources from your knowledge base to help them understand your offerings.
  • A record of the interactions with individual customers can help the marketing and sales team get a complete overview of their ideal customer profile.
  • Chatbots can be used to understand the coverage information—from there, they can be configured to apply for a claim.
  • It brings multiple benefits, including enhancing staff efficiency and productivity (61%), improving customer service (48%), achieving cost savings (56%), and fostering growth (48%).

At DICEUS, we also follow these stages to deploy the final solution efficiently. Schedule a personal demonstration with a product specialist to discuss what watsonx Assistant can do for your business or start building your AI assistant today, on our free plan. 60% of insurers expect nontraditional products to generate revenue on par with traditional products.

Instagram has been the rage for a couple of years and has grown so much from a business perspective. If your target audience is Instagram users, you probably already have your business page on Instagram. When prospects/customers are using Instagram, is it a good experience to close Instagram and come to your website to talk to your support/sales team? If you’ve enabled a chatbot on your Instagram page, prospects/customers can come to your page, and the chatbot can help them deal with their queries and/or register a support ticket.

They can then offer these customers additional coverage or policy enhancements to better protect them against that risk. By doing so, insurers can provide more chatbot use cases insurance value to their customers and improve their overall customer experience. Virtual assistants can be used to provide more personalised support to customers.

  • Startups and SMBs can’t risk losing their support teams’ reputations, which would impede their growth.
  • The platform has little to no limitations on what kind of bots you can build.
  • They can automate many of the tasks that are currently performed by human customer support.
  • As customers reach out to your support, they’d expect an instant reply, which is possible with a chatbot.
  • You can either implement one in your strategy and enjoy its benefits or watch your competitors adopt new technologies and win your customers.

By using data from sensors and GPS devices, insurers can offer usage-based policies that reflect the actual usage of the vehicle. An insurance chatbot is an AI-powered virtual assistant solution designed to help ease communication between insurance companies and their customers. It uses artificial intelligence (AI) and machine learning (ML) technologies to automate a variety of processes and steps that customer support people often do in the industry. AI chatbots and assistants offer more advanced capabilities regarding natural language understanding, personalization, and handling complex tasks than keyword chatbots. While keyword chatbots may be suitable for handling simple queries and providing basic information, AI chatbots deliver a more intelligent and personalized customer experience in the insurance industry. That’s because they’re powered by machine-learning technology that makes them smarter with each interaction – helping cover the wide range of services and queries your customers present.

Insurance chatbots simplify this process by guiding policyholders through the necessary steps required. Policyholders can use your chatbot to verify policy details/terms, request assistance with coverage adjustments, or seek help with other tasks such as filing a claim (more on this below). The sole purpose of risk engineering is to prevent loss for insurance organizations. Given the complexity and breadth of risk assessment documentation, the process itself poses several challenges.

The most popular types are rule-based, menu-based, contextual, voice-enabled, and predicative chatbots. We recommend starting chatbot development with a discovery phase, including CX design. CX specialists conduct in-depth research on insurers’ customers via interviews with current policyholders and prospects as well as competitors’ customers. These experts find out which pain points, challenges, and frustrations consumers have and what things they would like to see improved.

By analyzing vast amounts of data, insurers can identify patterns and trends that can help them predict the likelihood of a claim being made. This can help insurers make more accurate risk assessments, which in turn can lead to more effective risk management strategies. Customers can use voice commands to check their policy status, make a claim, or get answers to common questions. This can be particularly useful for customers who have limited mobility or prefer to use voice commands instead of typing.

It also enhances its interaction knowledge, learning more as you engage with it. Chatbots are able to take clients through a custom conversational path to receive the information they need. Through NLP and AI chatbots have the ability to ask the right questions and make sense of the information they receive.

If you enter a custom query, it’s likely to understand what you need and provide you with a relevant link. Another simple yet effective use case for an insurance chatbot is feedback collection. 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. For smaller companies not quite ready to ramp up their operations, a chatbot can save the time and cost of having to hire and train employees.

chatbot use cases insurance

Insurance chatbots are redefining customer service by automating responses to common queries. This shift allows human agents to focus on more complex issues, enhancing overall productivity and customer satisfaction. Collecting feedback is crucial for any business, and chatbots can make this process seamless. They can solicit feedback on insurance plans and customer service experiences, either during or after the interaction.

Get your weekly three minute read on making every customer interaction both personable and profitable. In fact, a smooth escalation from bot to representative has been shown to make 60% of consumers more likely to stay loyal to a business. You can then integrate the knowledge base with our GenAI Chatbot, effectively training the bot on its content. Integrating your bot with an AI knowledge base can significantly enhance its capabilities and scope. In the event of an accident or unexpected loss, filing an insurance claim can be a daunting task.

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. But, thanks to the power of AI, an insurance chatbot can evolve and be trained to handle an increasingly wide range of queries/tasks. Additionally, insurance bots can provide updates on the status of existing claims and answer any further queries, ensuring transparency and clarity Chat GPT throughout the process. And it’s not just policyholders who benefit from an insurance chatbot – insurance professionals (e.g. brokers) and third parties can also utilise this service. After you’ve converted an enquiry into an existing customer/policyholder, chatbots continue to play an important role in providing ongoing support. Chatbots serve as the first point of contact for potential insurance customers, offering 24/7 assistance to those exploring insurance options.

When an insured encounters unique request scenarios, digital assistants can analyze complex policy details and address emotional nuances. These instruments deliver customized explanations and pinpoint pertinent sections. Machine and deep learning provide chatbots with a contextual understanding of human speech.

Even though most answers are probably available on your site, they might not want to spend time searching for them. Chatbots can pull answers to queries from your knowledge base and share them with your prospects in a wink. KLI, a leading insurance provider, wanted to make customer care more self-serve and asynchronous, improve customer engagement, and give a boost to their lead generation efforts. You can foun additiona information about ai customer service and artificial intelligence and NLP. Learn how Haptik’s insurance chatbot helped enhance KLI’s customer engagement by 500%. Zurich, one of the world’s largest and most experienced insurers’, needed a solution to transform their customer care experience and make it as frictionless and easy-to-access as possible.

Claims processing is usually a protracted process with a large window for human error and delays which can be eliminated at each stage. You will need to use an insurance chatbot at each stage to ensure the process is streamlined. For the last three years, NORA, Nationwide’s Online Response Assistant, has provided customers 24-hour access to answers without having to call Nationwide. NORA can help customers reset a password by engaging an insurance professional in a live chat, obtain product information, and check on a claim status. Let us help you leverage conversational and generative AI in meaningful ways across multiple use cases.