What is Insurance Chatbots? + 5 Use-case, Examples, Tools & Future

Lug 04 2024

The State of Insurance Chatbots in 2022: Use-cases, Reports, and more

insurance chatbot use cases

By examining customer inquiries and delivering tailored responses, even for intricate insurance procedures, chatbots emerge as a genuine substitute for traditional phone or email communications. They provide faster responses, thereby enhancing customer satisfaction. Aetna’s chatbot, Ann, lives on its website and offers 24-hour support for new members and existing customers trying to log in. Powered by natural language processing, Ann mimics the look and voice of a human to give customers a friendly response. As a result, Aetna’s website experience has improved, and phone calls to its call center have declined by 29%. Another example is LAQO, a fully digital insurance company that implemented an AI-powered chatbot, Pavle, on WhatsApp to improve customer service.

The chatbot can interact with customers, inform them about the sale, offer them special promo codes, and guide them through the purchase process, enhancing both sales and customer experience. Chatbots in the banking sector can act as financial advisors, offering personalized advice and insights based on an individual’s financial data. These bots analyze user transactions, spending habits, and saving patterns to provide tailored financial recommendations, such as tips on saving money, investment suggestions, and ways to manage debt.

insurance chatbot use cases

Intercom’s chatbot is tailored for businesses of all sizes seeking a high degree of customization in their chatbots. Starting at $39 per month when billed annually, Intercom is particularly noted for its ability to support enterprise-level features like HIPAA compliance and smart lead qualification. A finance chatbot can remind users to record cash transactions, provide weekly spending summaries, and even alert them when they’re about to exceed their budget.

Moreover, chatbots may also detect suspected fraud, probe the client for further proof or paperwork, and escalate the situation to the appropriate management. Insurance carriers can use insurance chatbot use cases chatbots to handle broker relationships in addition to customer-facing chatbots. Furthermore, chatbots can respond to questions, especially if they deal with complex client requests.

While the insurance industry wasn’t the first to innovate, changes were inevitable. First, since the pandemic, people’s expectations have skyrocketed, imposing the need on businesses to improve customer support service. Even something as minor as a chatbot for scheduling consultations and bookings with your team can save you a lot of time, money, and stress as you grow. This allows you to propel your agency into the leading local provider, so whenever someone considers insurance for themselves, their family, or business needs – your agency is the top choice. Customers may not want to read through fifty pages of complicated insurance policies.

Giving your chatbots personality helps users to feel like they’re speaking to a real person, which makes them a more appealing prospect. 22% of people say the main reason they don’t use chatbots more frequently is because they seem “too robotic to engage with”. Rule-based chatbots use predetermined responses to interact with users, following a conversation flow based on a decision tree.

Build your insurance chatbot with Customer Service Suite

Chatbots can be on hand for online courses to answer queries and further explain materials, linking to outside resources when necessary. They can even be used to test students’ knowledge by administering mock exams and pop quizzes. These kinds of questions can provide valuable insight into how engaged and satisfied employees feel and highlight potential areas for improvement in workplace culture. HR chatbots can be used to whittle down the number of applicants for a job opening to a manageable amount. Engaging with customers in spaces usually reserved for interactions with their friends and family can instantly make that brand feel much more special and relatable. It’s one way to achieve marketing personalisation, building a unique relationship between customer and brand that ultimately results in better customer engagement and loyalty.

insurance chatbot use cases

According to G2 Crowd, IDC, and Gartner, IBM’s watsonx Assistant is one of the best chatbot builders in the space with leading natural language processing (NLP) and integration capabilities. Deliver your best self-service support experience across all customer engagement points and seamlessly integrate AI-powered agents with existing systems and processes. For the last three years, NORA, Nationwide’s Online Response Assistant, has provided customers 24-hour access to answers without having to call Nationwide.


While having an insurance policy gives peace of mind to the users, processing claims is a lot of work for a company too. Every valuable we own is most likely insured by some or the other insurance policy. Just like AI has simplified everything for other industries, insurance, too, seems to be reaping the benefits of AI automation with insurance chatbots. The artificial intelligence market in the insurance industry is set to clock at $4.5 billion by 2026 from $800 million in 2018. Insurance is often perceived as a complex maze of quotes, policy options, terms and conditions, and claims processes.

Students can track their attendance and absence history straight from the chatbot. If you’d like to learn more about setting up chatbots for your ecommerce, we have a sample bot flow here in our help guide. What’s more, Natural Language Processing makes the chatbot difficult to audit for compliance or marketing purposes. All in all, conversational AI is a great addition to a business strategy for insurers and the only way to stay competitive in the market. The appearance of conversational AI has changed the situation drastically.

There exist many compelling use cases for integrating chatbots into your company. Fraudulent claims are a big problem in the insurance industry, costing US companies over $40 billion annually. Bots can comb through claim data and identify trends that humans may miss. As chatbots evolve with each day, the insurance industry will keep getting new use cases.

  • Moreover, when equipped with an AI-powered recommendation engine, the insurance chatbot can offer personalized policy recommendations to a prospect.
  • These intelligent systems manage many policy inquiries, adeptly handling questions about policy terms, expiration dates, coverage details, and upcoming premium obligations.
  • Chatbots are effective at keeping an eye out for and spotting symptoms of fraudulent conduct, and they can notify both the consumer and the insurer.
  • ServisBOT’s Conversational AI Platform is built using an AWS technology stack.

Simulating the behavior of a human insurance agent, it can engage the customer in a conversation and ask them questions to understand their needs and expectations. Leveraging the power of Natural Language Understanding (NLU), the AI can precisely pinpoint the customer’s intent based on their responses. Based on this, the assistant can then make personalized policy recommendations to the customer. Salesforce is the CRM market leader and Salesforce Contact Genie enables multi-channel live chat supported by AI-driven assistants. Conversational AI can be used throughout the insurance customer journey, from marketing to claims.

It greatly reduces wait time for customers and provides information and initiates documentation that helps speed up the process. The bot ensures quick replies to all insurance-related queries and can help buyers enroll for insurance and get claims processed in less than 90 seconds. You can use an intelligent AI chatbot and enhance customer experience with your insurance products. The bot will help you respond quickly and instantly to any question, engage customers round-the-clock and route chats to human agents for a great conversation experience. Since its launch, the chatbot has come as a great help to over 60,000 customers as it has been utilized in almost 4000 cases. MyRA also allows customers to compare products which make it easy for customers to make better decisions.

Right after a customer completes a purchase, a chatbot can send an instant confirmation message along with details such as the order number, expected delivery date, and a summary of the order items. As the order progresses through packing and shipping, the chatbot continues to send updates, which can significantly reduce customer anxiety about their purchase. With this in mind, the client asked us to set up a chatbot on its website in order to provide an integrated support for their customers for simple, but time consuming requests. Founded 40 years ago, our client is a major player in health insurance. It offers complementary insurances and is committed to sustainably low premiums.

insurance chatbot use cases

Additionally, a chatbot can automatically send a survey via email or within the chat box after the conversation has concluded. Please read our blog on How to create an AI chatbot for free without coding to develop your Insurtech chatbot. Now, let’s delve into how Insurance chatbot development specifically boosts the insurtech ecosystem, taking modern insurance to new heights. Risk assessment in the insurance world is like being a weather forecaster for all potential problems.

Filing and tracking insurance claims

For instance, after a big storm, a property insurer can preemptively reach out with steps on filing a claim and all necessary information and documents. The positive outcomes they’ve brought to insurance companies and policyholders are immeasurable – turning long, tedious processes into fast, pain-free experiences. Each of these chatbots, with its specific goal, helps customers and employees through conversation – collecting internal and external data that allow it to make decisions and respond appropriately.

To keep them informed and satisfied, your chatbot can be linked to your knowledge base to get them the FAQs or other resources and solve their queries. Also, if they want to reach out to your advisors, you can route them from the chatbot’s interface for a live call. When visitors are loitering around your website, based on the actions they’ve taken, you can use chatbots to trigger a personalized message to https://chat.openai.com/ nudge them to make the purchase. 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. For new visitors, you can use chatbots to announce offers of the day in the chatbot interface itself. Instead of making people jump pages, showing the announcement in the chatbot UI makes for a good customer experience.

AI chatbots also have applications in sales scenarios, such as recommending products to website browsers based on their browsing history. It’s even possible to program AI chatbots with different personalities, allowing them to speak to target demographics and customer personas more naturally. Many organisations will use rule-based chatbots as a precursor to contact with a human agent. This allows them to gather contextual information, ensuring the user is in contact with the correct department and saving the human agent time.

This can be a complex process, but chatbots can simplify it by asking the right questions and providing personalized recommendations. Chatbots are software programs that simulate conversations with people using unstructured dialogue. They are often used in the insurance industry to streamline customer interactions and provide 24/7 support. AI chatbots can be fed with information on insurers’ policies and products, as well as common insurance issues, and integrated with various sources (such as an insurance knowledge base).

The chatbot can send the client proactive information about account updates, and payment amounts and dates. Based on the insurance type and the insured property/entity, a physical and eligibility verification is required. Yellow.ai’s chatbots are designed to process and store customer data securely, minimizing the risk of data breaches and ensuring regulatory compliance. As we approach 2024, the integration of chatbots into business models is becoming less of an option and more of a necessity. The data speaks for itself – chatbots are shaping the future of customer interaction.

Insurance chatbots can be set up to answer frequently asked questions, direct customers ro relevant information and policy guidelines, and offer resources for self-service, 24/7. The platform gives business users and enterprise developers the tools to get chatbot solutions to market faster. Using machine learning and artificial intelligence to generate human-like responses to customer inquiries, these algorithms can create a more natural and personalized chatbot experience.

Our prediction is that in 2023, most chatbots will incorporate more developed AI technology, turning them from mediators to advisors. Insurance chatbots will soon be insurance voice assistants using smart speakers and will incorporate advanced technologies like blockchain and IoT(internet of things). Insurance will become even more accessible with smoother customer service and improved options, giving rise to new use cases and insurance products that will truly change how we look at insurance. Utilizing data analytics, chatbots offer personalized insurance products and services to customers.

An AI-powered chatbot can integrate with an insurance company’s core systems, CRM, and workflow management tools to further improve customer experience and operational efficiency. Many chatbots can be annoying since they can only respond to FAQs and frequently stall when a discussion somewhat deviates from its intended course. An insurance chatbot is an AI-powered virtual assistant solution designed to cater to the needs of insurance customers at every stage of their journey. Insurance chatbots are revolutionizing the way insurance brands acquire, engage, and serve their customers.

  • And secondly, the industry itself has witnessed an incredible rise in popularity.
  • Likewise, chatbots can be used in the digital world to navigate them around your site.
  • If they’re a regular customer, you can show personalized suggestions and offers exclusively for them based on their purchasing history with you.

And in order to intake all these claims, for many years, insurers relied on night call centers. ServisBOT’s Conversational AI Platform is built using an AWS technology stack. All ServisBOT customers benefit from this enterprise-grade architecture and technology that supports secure data integration, bot scaling, and data isolation, all at a lower cost.

Feedback collection

Customers can get answers to common questions like insurance policies and other common insurance queries. Still, over time, this technology will use ML and natural language processing (NLP) to respond to inquiries in as much of a human tone as possible. This is also a massive benefit if you run an insurance agency in a multi-lingual area like Southern California, where knowing Mandarin, Spanish, and English is crucial to your success. In an industry where customer lifetime value is so high, implementing an insurance chatbot can pay massive dividends that will satisfy the customers, C-suite, and investors. When companies are able to offer a streamlined solution, it can also lead to a better price for the customer.

For instance, a chatbot on a real estate website might interact with visitors by asking what type of property they are interested in. As the conversation progresses, the chatbot can request the visitor’s contact information to send listings that match their preferences or to set up an appointment with a sales agent. It guides new employees through the necessary paperwork, schedules orientation sessions, and even introduces them to team members virtually. This makes the onboarding process more interactive and helps new employees feel more welcomed and informed.

Here are some blogs to help you understand chatbots and what they can do for your business. It can be configured to ask questions to determine the prospect’s need; based on their input, the bot can suggest the appropriate policy. It educates the prospects about the policy and helps them decide faster, ultimately resulting in faster conversions. For your customers, you can configure your chatbot to show the delivery tracking information.

Better fire risk assessment is possible due to the use of data from connected devices, climate studies, and aerial imagery. Insurers can build models that can look at risks more closely at the individual property level. The agency deployed the bot for tailored ad targeting and is now pursuing more bots after its successful run. This is a possible approach to take if you want to get an idea of how a chatbot can work for you. It usually involves providers, adjusters, inspectors, agents and a lot of following up.

Therefore, we expect to see more implementation opportunities of chatbots in the insurance industry which are AI driven tools. 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. In an industry where data security is paramount, AI chatbots ensure the secure handling of sensitive customer information, adhering to strict compliance and privacy standards.

Chatbots contribute to higher customer engagement by providing prompt responses. Integration with CRM systems equips chatbots with detailed customer insights, enabling them to offer personalized assistance, thereby enhancing the overall customer experience. Unlike their rule-based counterparts, they leverage Artificial Intelligence (AI) to understand and respond to a broader range of customer interactions. These chatbots are trained to comprehend the nuances of human conversation, including context, intent, and even sentiment.

The chatbot provides answers to insurance-related questions and can direct users to the relevant GEICO mobile app section if necessary. For instance, if a customer is seeking roadside assistance and is unable to find the relevant menu within the app, Kate will guide the user to the appropriate menu. The necessity for physical and eligibility verification varies depending on the type of insurance and the insured property or entity. A chatbot can assist in this process by asking the policyholder to provide pictures or videos of any damage (such as from a car accident). The bot can either send the information to a human agent for inspection or utilize AI/ML image recognition technology to assess the damage. Next, the chatbot will determine responsibilities based on the situation.

How Insurance Chatbots Help Customers

You can foun additiona information about ai customer service and artificial intelligence and NLP. The emergence of insurance-focused chatbots is more than just a technological advancement; it’s a paradigm shift in the way insurance will be conducted. By catering specifically to the unique needs of each stakeholder in the insurance value chain, these chatbots are paving the way for a more informed, efficient, and responsive insurance landscape. As we continue to navigate the complexities of insurance, the role of these chatbots will undoubtedly expand, ushering in a new era of digital proficiency in insurance services. Integrating a powerful and easy-to-build insurance chatbot is a surefire way to streamline your operations.

If the word gets out that you offer one customer a fantastic deal but not another, you could face backlash that harms your bottom line. On its own, a chatbot provides a repository of information that is called up whenever a customer interacts with the software. It is a “call and response” system that enables customers to get the information required.

A chatbot is essentially a software application built to chat with users, mimicking human-like conversations. It uses AI to interpret and respond to messages, making interactions as smooth and natural as possible. With technology advancing rapidly, by 2024, chatbots are expected to save businesses up to 2.5 billion hours of work, highlighting their increasing impact on productivity and service delivery. You can build your own insurance chatbot for website equipped with NLP and other advanced features to ensure smooth and lag-free conversations with your users using Verloop.io. It’s a great investment that can enhance CX remarkably and bring in more conversions. A seamless connection between you and your users saves time and reduces unnecessary workload.

Give your customers quick access to quotes, policy coverage, benefits, and more. If your restaurant has multiple branches, chatbots can route the chat to a specific branch and quickly clarify their queries. One of the major headaches for a prospect is to select an insurance policy that suits their needs, as there’re scores of them available. Instead of helping them, the sheer number of options confuses the prospects and drives them away.

Insurance chatbots are virtual assistants that help support new and existing customers on their favorite digital channels. Chatbots can now handle a wide range of customer interactions, from answering simple questions to processing claims. This is helping insurance companies improve customer satisfaction, reduce costs, and free up agents to focus on more complex issues.

How insurance companies work with IBM to implement generative AI-based solutions – ibm.com

How insurance companies work with IBM to implement generative AI-based solutions.

Posted: Tue, 23 Jan 2024 08:00:00 GMT [source]

They may also want to compare your business offerings with competitors. When a customer interacts with an insurance agent, they expect agents to take into consideration their history and profile before suggesting a plan that is best suitable for them. Once your customers have all the necessary information at their disposal, the next ideal step would be to purchase the policies.

It can then either assess the damage using image recognition with AI/ML or connect the case to a human support agent. Your AI chatbot can verify the damage and gauge the liability taking the extra work off of your support team. Recognizing this need, Haptik has built insurance chatbot solutions with out-of-the-box integrations. Moreover, when equipped with an AI-powered recommendation engine, the insurance chatbot can offer personalized policy recommendations to a prospect. By offering them not just general information, but also concrete recommendations, the insurance chatbot increases the likelihood of the prospect exploring the purchase further.

There is no dependence on third-party providers like OpenAI, Google Bard, or Bing AI. Everything is stored and processed on the ChatBot platform, increasing your data security and giving your stakeholders peace of mind. Your clients will have questions about how they are paid, where that payment will come from, and how soon they will receive payment.

When a visitor lands on the website, the chatbot collects the essential information. Moreover, When a customer decides to buy an insurance policy, these chatbots make it easy, showing how to get started without any fuss. Despite these challenges, chatbots can be valuable to an insurance company’s client service arsenal. Chatbots can improve client satisfaction by providing quick and efficient customer service. Chatbots can access client information quicker than a human sales team. This is where AI-powered chatbots come in, as they can provide 24/7 services and engage with clients when they need it most.

This technology is used in chatbots to interpret the customer’s needs and provide them with the information they are looking for. It allows computers to understand human language and respond in a way that is normal for humans. The conversation is not necessarily how they naturally communicate, but it should feel normal to make them feel at ease. This article explores how the insurance industry can benefit from well-designed chatbots. You will learn how to use them effectively and why training staff matters. AXA has an extensive website, so using a chatbot to help users find exactly what they’re looking for is a clever, sales and customer-focused way of offering assistance.

insurance chatbot use cases

On the strength of its success, the group has acquired in recent years companies with complementary activities in order to offer a range of unique services at highly competitive prices. And to reduce that number, you might need to employ various layers of verification before processing a claim. 73% of retail banking and insurance executives estimate a more than 20% rise in the number of conversations handled by chatbots. Chatbots have come a long way in recent years, but there are some instances in which chatbot support simply cannot provide the same service as a human support agent. The user interface (UI) of your chatbots will determine how successfully they’re used. Features such as buttons, quick replies, and multiple-choice selections can reduce the amount of text presented to users and speed up their interactions.

This can help to reduce the frequency and severity of losses, and it can also alleviate demand on the call center during peak times. 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. Imagine a world where your insurance company can handle claims in minutes, not days. This isn’t a distant future—it’s the power of insurance chatbots, here and now. So digital transformation is no longer an option for insurance firms, but a necessity.

insurance chatbot use cases

With pricing, policies and coverage so similar, a key way for insurance providers to differentiate is on customer experience. Increasingly, insurance providers are investing in modern conversational artificial intelligence (AI) to scale personalized, effortless and proactive customer experiences. 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.

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. This information will help improve your customer experience and track your bot performance. Deploying a chatbot is one of the easiest and most interactive ways to collect feedback from customers. You can collect feedback in terms of ratings or comments or ask customers to fill out a feedback survey.

There should be no reason a chatbot cannot comprehend the phrase “my son broke my window” when a damage claim is being made. When humans and bots interact, the use of distinct languages, formal or informal, must be considered. An insurance cost savings of over $1.3 billion across auto, life, property, and health insurance will be realized by 2023, up from $300 million in 2019, according to a Juniper Study. This is a differentiating characteristic that enables insurance companies to maintain their leadership. Additionally, Covid-19 has heightened the necessity of offering competent customer service to clients who are confined at home while also overcoming the difficulty of not being able to access workers. New customers who are digital natives and have high expectations for how a business handles them have emerged due to generational shifts.

This transparency builds trust and aids in customer education, making insurance more accessible to everyone. When chatbots can quickly handle customer questions and routine requests, they produce significant operating expense reductions. In the insurance industry that’s especially important because carriers are under increased pressure to reduce expenses wherever possible in a volatile economic climate. The insurance chatbot has given also valuable information to the insurer regarding frustrating issues for customers. For instance, they’ve seen trends in demands regarding how long documents were available online, and they’ve changed their availability to longer periods. This has led to a quantifiable overall increased customer satisfaction.

You can use your insurance chatbot to inform users about discounts, promote whitepapers, and/or capture leads. While most customers don’t necessarily want to get insurance, they do so because they know they must. To ensure that any alterations are not viewed as an additional burden, insurance companies must be ready to support clients in performing end-to-end seamless processes in a friendly and secure manner. This Chat GPT data enables insurance companies to provide individualized services and improved quote suggestions that take into account the requirements of each client. Customer service efficiency determines how likely human error is to occur as well as how much money may be saved on operating expenses. For instance, after an accident, a policyholder can interact with the insurance company’s chatbot via their smartphone.

Offering 24/7 customer support through chatbots ensures that help is always available, regardless of the time or day. This is especially important in our increasingly globalized world, where customers may be in different time zones or prefer shopping during off-hours. Imagine a scenario where a customer wishes to return a product they bought online. A chatbot could handle the interaction by asking for the order number, reasons for the return, and preference for refund or replacement, all while providing packaging and shipping information. This chatbot then schedules a pickup time that suits the customer, completing the process efficiently without any human intervention.

For insurance executives, customer care teams and data scientists here are 3 pillars to consider when designing a successful chatbot. As mentioned earlier, insurance is a rather complex and boring topic that a lot of people find difficult to understand. Companies that use chatbots to answer FAQs attract more users and have better user acquisition overall. Most often, companies choose to automate the data collection process with a chatbot, thus reducing human involvement to a minimum.

When it comes to actually buying a policy, the entire process can be automated. Quotes can be generated after asking pertinent questions of the customer, and details can be obtained to fill out the policy application. Once obtained, these details can be fed into a company’s customer relationship management (CRM) software so that sales reps can follow up. Chatbots can even help to qualify and nurture leads, helping to turn them into prospects. Chatbots have a range of potential applications in the ecommerce sector. Thanks to their versatility, they can be deployed to various channels, meaning customers can access them at every stage of the customer journey.

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