How advanced AI chatbots are taking over the insurance industry
More insurance companies are taking advantage of AI to improve customer service as automation is making buying or claiming insurance quick and easy.
After upgrading the worlds’ leading “no-coding” chatbot platform to the latest “version2”, where RPA, NLP and a whole range of industry-specific bots are available in multiple languages, one of the industries that adopted the technology at a rapid pace, is the insurers. Today I want to share some of the reasons why chatbots are so special for insurance companies, with specific background information.
Why are chatbots so useful to the insurance industry?
With computerization, lengthy physical forms were replaced by lengthy digital forms. For many insurance companies, buying or claiming insurance still involves lengthy phone calls, with information given over the phone. The time wasted on the phone and the limited customer service has always made it difficult to trust insurance companies. But then customer service costs a lot of money in the form of phone calls, agents’ salaries, and call centers around the globe to respond to queries at night. That is why the insurance industry will benefit a lot from the use of chatbots.
Already, chatbots are disrupting the industry, bringing huge benefits to those who are jumping into the technology bandwagon.
Chatbots have a few advantages. They require texting and humans already text a lot, substituting written text for verbal communication, and chatbots chat back. It’s a lot like chatting to a human being! People like chatbots because they are not additional apps. They are available on the insurance companies’ websites and on social media platforms where people already spend a lot of time. A policyholder who is already on Facebook can simply chat with a chatbot on Facebook Messenger.
How insurance companies are using chatbots
The integration of chatbots into pay per click programs, to capture leads and answer their questions, is perhaps the most notable use. It is actually many marketing agencies and PPC executives who propose chatbots to their clients for better conversions. But there are many other reasons: As chatbots are becoming more intelligent, they are introducing new standards of efficiency and customer service for the industry. Here are the various ways the industry is using chatbots.
Policy inquiries 24/7
Gone are the days when prospective insurance customers browsed through a website to find information. Chatbots are programmed to give answers to frequently asked questions, 24/7. Therefore, people who are too busy or sleeping during the day can interact with a chatbot when it is convenient at night or during the weekend. When a question is too complicated for the chatbot, it is routed to a human agent. Easy inquiring is leading to higher customer satisfaction which can lead to higher sales.
Purchasing insurance made easy
Purchasing insurance with the help of a bot is fast and easy. A chatbot can create a customized experience since it can ask the right questions and make sense of the information it receives. It can quickly analyze data gathered from customers and determine the risk involved with each one.
Claiming made easy
While losses are painful and frustrating, chatbots make the process of claiming easy and fast for policyholders. There is no waiting on the phone to get connected to an agent and there is no waiting for office hours. A policyholder can simply send a message to a chatbot any time (even at night and even if they are in a meeting or traveling) and it instantly responds. Depending on the questions asked by the bot the policyholder can provide all the necessary information.
Real life insurance company
Progressive is one American insurance enterprise that offers a chatbot called Flo. Flo helps customers to get insurance quotes, to file claims and to move payment dates. Progressive classified the frequently asked questions into categories and trained Flo to recognize the categories and to respond accordingly. Flo is available on Facebook Messenger, meaning that customers who are on Facebook can access her and chat without the need to log into their account separately. She uses simple language mixed with wit which keeps customers engaged and interested. Flo is expanding her database of knowledge with each interaction and Progressive can regularly update the questions that she responds to.
Benefits of chatbots on insurance companies
Cost saving. A chatbot involves a one-time cost of purchase/development. Then it performs most of the work that human agents normally do but faster and more accurately without getting tired. By replacing human agents and working 24 hours per day, it reduces the monthly salary expense.
Instant response to notification of loss. Insurers are able to respond faster to claims made through the chatbot. This keeps policyholders happy. Meanwhile the insurance company learns more about policyholders and can draw up more accurate policies and reduce the time of investigation in the future.
Customer satisfaction. Because bots are easily accessible via social media and mobile digital devices, customers can access them 24/7, and they respond faster, they give customers a better experience. The result is happier customers.
Easy sharing. People can like and follow chatbots on social media. If they like something they can share with their friends who become potential customers for the insurance companies. That is easy marketing.
Chatbots are easy to build
Companies do not have to spend loads of money on chatbot development costs. Ready-made chatbots are available. For example, SnatchBot has various chatbot templates that can be customized to a company’s needs without any knowledge of programming.
Want to read about other industries who adopted chatbots?