Chatbots offer innovation and real value to the insurance industry. They are popular as customer-facing chatbots that can provide quotes and instant insurance coverage around the clock and internally to help insurance companies process new claims. For the customer, the insurance chatbot is a welcome development that extends office hours around the clock and can find the right product and quote in the shortest amount of time, without the customer picking up the phone. The insurer’s chatbot can be contacted through the customer’s preferred messaging channel.
For insurers, chatbots that integrate with back-end systems to create tickets for claims and drive the claims management process are a more cost-effective and user-friendly solution for employees than custom software. Such chatbots can be launched on Slack or the company’s internal communication systems or work just through email exchanges.
The requirement for a new era of customer service is being set across all sectors, and the insurance industry is not exempt. As consumers have become accustomed to fast, personalized service, expectations rise in other industries. Industries such as digital technology and retail are at the forefront of new methods and advanced technologies.
Today’s consumers expect a similar level of service from their insurance providers as they do in other areas; they want to contact a company through the channel of their choice, just as they would any other person. With an innovative customer service method that builds a relationship between provider and policyholder, insurance companies can support their customers in a way that generates loyalty and advocacy.
Benefits of insurance chatbots
How prevalent are chatbots? 80% of brands today use chatbots for customer interactions. Here’s a list of their most popular benefits:
Efficiency and convenience: These virtual agents offer customers an easy way to get information or ask questions without dealing with them. They don’t have to wait a day or two (or longer) for an email reaction or remain on hold waiting for the following next available customer service representative.
24/7 availability: According to Finance Online, 64% of customers say contacting customer service 24/7 is the best chatbot feature for insurance. Most chatbots are available at all hours of the day and night, which means customers can ask their questions even when most other helplines and agents are unavailable, such as at night, on weekends, and vacations.
Instant answers: HubSpot determined that of the 71% of customers who use messaging apps for customer service, many do so because they want quick answers – and chatbots can be the answer because of their user-friendly features and availability. In most cases, when customers have questions, they seek answers almost immediately.
Redistribute employee workload: Chatbots can help staff members process and manage new claims and perform everyday tasks like updating accounts. They can even create personalized quotes. Insurance policy chatbots can also free up employees who might otherwise be answering phone calls or responding to emails, saving time and money.
Streamline procedure: Chatbots can affect and streamline everything from claims reporting to understanding data analytics.
Improve customer relationships: According to HubSpot, most Millennials who have interacted with a company’s chatbot say the experience positively impacted their perception of the company.
Generating leads: When customers interact with a chatbot, they can be expected to provide basic contact information such as name and email address. This is an easy way for insurers to generate leads.
Challenges chatbots can solve for insurers
Property and casualty insurance is complex and challenging to understand for many consumers. Buying different types, renewing, and settling claims can be complicated – but insurance chatbots can clarify the processes and help customers understand the costs involved.
However, it’s important to note that insurers should always include a way for customers to contact employees. Even though chatbots can handle routine tasks, customers want to know they can speak with a real human being when needed.
Chatbots can also help insurers keep up with customer service demands. Chatbots often respond faster than a human, and unlike a human, they can handle multiple customer inquiries at once.
5 Ways Chatbots Can Help Insurers
Claims processing. Chatbots can help with claims and payment questions. There are a variety of ways insurers can use chatbots to provide adequate customer service:
Collect leads: When customers interact with a chatbot, they can be expected to enter basic contact information such as name and email address, which is an easy and effective way to collect customer data and generate leads. This information can be shared with sales teams.
Inform: In many cases, someone contacts an insurer with questions about a product or procedure. A chatbot can respond to questions and provide more information – or route those inquiries to the appropriate departments or resources.
Engage with customers and gather feedback: chatbots are often faster and more efficient than phone calls and emails. They also provide insurers with an easy way to collect data about their various customer service requests.
Freeing up employees: Employees can devote their time to other important tasks when chatbots help handle customer service requests.
Customer service chatbots for self-service in the insurance industry
Much of the CX investment in customer service revolves around automation and AI to automatically resolve inbound tickets and proactively reach critical parts of the customer journey.
Customer service chatbots can be deployed across all major digital channels, including email, webchat, messaging, SMS, social, and voice. When providers rely solely on human-agent teams, providing the effortless and immediate resolution customers expect is challenging. AI can help automate solutions for regular tickets, assist agents by gathering information from customers and back-end systems before passing it to an agent, and even write responses to review.
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