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INSURERS ARE BETTING BIG ON CHATBOTS. WHY?

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Ever since Facebook introduced its chatbot functionality on Messenger, organizations have been going crazy over the customer outreach possibilities. Over the past two years, chatbots have been making the headlines – thanks to the immense potential they withhold.

It may come as a surprise that even the insurance industry; a mammoth sector to say the least, outspends major industries when it comes to investing in AI-powered chatbots. However, the growth has been very slow than other sectors; experts are still exploring artificial intelligence (AI) capabilities they can imbibe.

Almost all industries are expected to adopt chatbots by 2020; otherwise they might lose out on a significant chunk of customers. As insurers tap AI to analyze risk and validate claims, they’re also deploying this technology in customer-facing applications.

The benefits and drawbacks of AI in the insurance sector are an on-going conversation. Let’s have a look at them in detail.

1. Chatbots enabling “Human-Like” Conversations

While insurance companies have been using IVR (Interactive Voice Response) since the ’90s, a convergence of new technologies is empowering far more complex conversations. Chatbots enable intelligent, natural conversations with humans via text or voice to answer questions and provide information.

Chatbots are gradually being used in the insurance field to assist agents. They are also being used in customer-facing applications such as helping existing customers with standard queries & menial tasks, on-boarding new clients and processing claims. They are also assisting users to provide account and billing information, give quotes on policies, and process simple claims, in case of some insurtechs.

2. Chatbots are Available 24/7

Unfortunately, no one can control a few incidents like home damage, car accidents and life-threatening events that require an insurance claim. Customers often find themselves forced to connect with an agent during business hours, if they need assistance filing a claim. But a chatbot can be available 24 hours a day and don’t require human intervention.

They can enable new efficiencies by assisting thousands of users and answering thousands of queries simultaneously.

3. Chatbots Streamline Tedious Processes

A chatbot can cut down on redundant paperwork and unnecessary steps in an insurance claims process. Once this was too much to hope for, chatbots are already making this dream a reality. With a chatbot, overall insurance process time will be significantly reduced.

In a Nutshell

Insurance chatbots offer tantalizing opportunities and can benefit the industry in several key ways. As they lack human empathy, insurers must ensure they’re being supported with the right intelligence. In an industry that already faces so many challenges, chatbots are solving at least some of their bigger problems.

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