Chatbots In The Insurance Industry: The Future Of Customer Service

Almost every day, the insurance industry deals with thousands of customers, each having a multitude of queries about policies, claims processing, account updates, terms, conditions, and more. The customer support team can only cater to so many queries at a time. Resultantly, customers have to wait for extended time periods thereby leading to prospects and customers dropping off or switching to competitors.

Insurers have sought technological advancements to address the growing concerns in the insurance sector. The latest technology that is taking the companies across verticals by storm because of the multitude of benefits it entails is ‘Chatbot’. Chatbots can make a world of difference in improving the overall customer experience in the insurance sector. Let us see how.

Manage Claims Processing

Claims management and processing are taxing procedures both for the insurers and the insurance holders. Intelligent chatbots can eliminate excessive human intervention required in the current scenario of claims management. The policyholder can simply report the claim in an AI-powered claims bot. The bot can then verify policy details and pass it through a fraud detection algorithm and generate a confidence score, based on which the insurance company can decide to settle or reject the claim.

This makes the processing of claims a lot easier and hassle-free. Claims with standard documentation can be reviewed by AI-powered chatbots thereby minimizing human efforts and delivering instant customer assistance.

Lead Profiling

Chatbots work round the clock to address general FAQs and other queries. Based on the queries, the chatbot can then profile leads and provide them the quotes. This data gathered by the bot can then be utilized by the sales team to follow up on the leads and onboard new customers.

With chatbots on your website/app, you can address queries even outside operational hours. If a potential customer discovers your website late at night while surfing(which they usually do), they will still be able to interact with the bot and find answers about different policies, terms, and conditions.

Personalized Recommendations

Because of their conversational nature, chatbots can easily provide all the educational support that the customers need to find a suitable insurance product. Chatbots can process customer queries, scan through the policy repository and deliver accurate product recommendations, tailored to suit the needs of the individual.

Besides helping the individual decide on the best-suited product, chatbots also assist them through the purchasing process of insurance policies.

Here are some benefits of a chatbot that make it an ideal fit for the insurance industry:

Streamlining tedious processes

Customers dread the enormous number of steps involved while buying or renewing insurance. Chatbots cut down on unnecessary steps and frequent to-and-fro between agents by walking customers through simple steps in a conversational manner. Easy access to information and the removal of excessive human intervention makes customer onboarding simpler.

Reducing customer confusion

People usually dread interacting with insurers because of the difficult and confusing jargons associated with the insurance industry. For e.g., trying to navigate the differences between various policies can be overwhelming to a consumer who is not familiar with the insurance space and its jargons. A chatbot can help reduce confusion by simplifying the complex terms into more straightforward language and walking customers through simple steps.

Reducing customer wait times

In the face of growing competition in the insurance sector, insurers are finding it difficult to attract and retain customers due to extended waiting times. Chatbots are easily accessible round the clock and provide instant responses to customer queries. This reduces customer wait times and as a result, improves customer experience.

Scalable

Your customer support team can handle only so many customer queries at once. But chatbots are automated tools and hence can address thousands of customers at once. Whether you have 5 or 500 people on your website looking for answers, a chatbot is able to answer any number of queries instantly, at the same time. There is no limit to the number of conversations a chatbot can have at the same time.