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The Insurance industry drives the economy by speeding up the recovery and claimants and beneficiaries. In 2019, the Insurance Industry paid approximately $1.5 trillion to help claimants and beneficiaries rebuild their lives, properties, businesses, and get medical care. That translates to an average of $125 billion per month.

When it comes to choosing the right policy for their coverage needs, customers obviously have a lot of questions to ask. Additionally, the claim-filing process can be a very taxing proposition. On top of all that, human support may not be always available.

With the emergence of the Digital Era, and by extension digital solutions, policyholders and customer expectations have changed. At the heart of that change is the implementation of chatbots for the insurance industry.

Chatbots have gained momentum in terms of application and use cases in recent years. They are transforming the Insurance industry.

Chatbots have the capacity to yield fast outcomes, higher efficiency, and a more fulfilling customer experience. The same thing applies to the insurance industry, as it is increasingly harnessing the benefits of chatbots. 

Table of Contents

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What are Chatbots?

A Chatbot is essentially a computer program backed by algorithms, that can create a natural conversation with humans to answer questions and provide information.

Technology-wise, the insurance industry was not one that refused to embrace technology prior to the Digital Era. Insurers have indeed been using Interactive Voice Response (IVR) at call centers since the nineties.

And even during the Digital era, “traditional” means of customer outreach, such as standard websites, speak the “computer language”. Users are required to navigate menus and screens, and input information via clicks and commands.

Insurance Chatbots, however, are enabling far more complex conversations and provide better solutions. Insurance bots are increasingly being used to support agents, and in customer-facing applications such as onboarding new clients and processing claims. 

As a whole, many companies are coming up with insurance chatbots for claims and applications, and giving them a name as well.

What are the Benefits of Chatbots in the Insurance Industry?

Buying insurance is a critical decision for all customers. They want to be provided with proper information to back up their investment and the best possible purchasing experience to ensure they get what they want.

  • Approximately 47% of buyers are more likely to purchase a product or a service from chatbots. 53% of buyers are also more likely to buy a product or a service from a provider that they can reach out to via a chat app.
  • According to Forbes, approximately 70% of people nowadays prefer to buy an insurance policy via their mobile phone.

Deploying chatbots for the insurance industry offer policyholders an improved, more personalized experience that provides information and resolves issues in real-time.

Here are a few ways in which insurance bots are able to improve the insurance industry:

Chatbots for Insurance Provide for a More Personalized Customer Experience

The best Insurance Chatbots are powered by Artificial Intelligence (AI) and Machine Learning. As a result, they are capable of reading and memorizing user data from all conversations. This is where personalization comes into play. Insurance bots as a whole can collect user data, such as their preferences or what kind of insurance they are looking for, etc.

Chatbots for insurance can be seen as digital insurance agents that recommend appropriate insurance to clients based on their requirements, thus enhancing the customer experience.

Chatbots for Insurance are important in terms of being embedded on websites. Whilst websites are a common brand touchpoint, they become much more interactive and engaging for users when they are integrated with Insurance chatbots. 

The best insurance chatbots can optimize the customer experience by omitting the need to reach out to personal or navigate through multiple webpages.

Chatbots for Insurance Provide Basic Services Around-the-Clock

Human support in the Insurance industry is not always available, whereas the insurance sector must be available on a 24/7 basis, since critical moments can arise at any moment of the day. 

Chatbots for insurance should be programmed to offer a 24/7 customer service, answer FAQs, and handle customer queries in a way that educates them.

For example, Chatbots in the Insurance Industry can educate customers on how the Insurance process works, compare policies, and select the best one for them on a case-by-case basis. 

Chatbots for Insurance Improve the Claim Processing and Payment Assistance Process for Policyholders and Agents Alike

Since Insurance Chatbots leverage the power of automation and robust AI tools, agents will save a lot of time, hence enabling them to focus on more complex tasks and increase productivity in the workplace.

When chatbots for insurance are programmed to address customer insurance claims, they can be of tremendous help. This particular task already constitutes the majority of a human insurer’s daily workload.

Chatbots for Insurance can also have the capacity of following up with customers regarding existing claims and notify them for payments. In other words, Insurance chatbots can be programmed to also serve as reminders to meet payment deadlines.

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Chatbots for Insurance Enhance the Lead Generation and Conversion Process

Insurance Chatbots have the ability to select the best policies on a case-by-case basis, they are very useful for customer segmentation and customer recognition.

When the Insurance Bots are provided with basic user info, alongside the queries and consumption patterns, they are able to suggest the most appropriate offers for them.

Chatbots for Insurance are able to better generate leads, profile them based on their preferences, and provide them the required premium fees. 

The data gathered can be valuable to your company’s sales team to lead prospects further down the marketing funnel, and convince them to make a sound purchasing decision.

In essence, the benefits of deploying chatbots for insurance companies are quite abundant. They are viewed as valuable assets that yield a high ROI for companies. As a result, they increase their market share and have an edge over the competitors that are not using this technology.

Insurance bots also quickly and efficiently and make the agents’ tasks an easier and smoother affair. They also contribute to an overall increase in the efficiency of an organization and build better customer relationships.

AI and technology as a whole have empowered customers and enabled them to grow a bigger sense of independence and self-service. The best chatbots for insurance are getting intelligent enough to offer a more comprehensive and meaningful interaction with consumers.

Building and deploying chatbots for insurance is a win-win situation!