Introduction

New technology is increasingly changing the way companies do their business. One such technology that has taken many industries by storm is the use of chatbots in customer support services. A chatbot is a program that has been designed to simulate chat instances with customers. It is programmed to have natural language processing and usually makes use of messaging apps that most users have on their phones. They work by processing either typed or spoken words and providing personalized responses to the users. One such industry where chatbots are poised to make a revolutionary difference is the insurance industry.

It is estimated that the global insurance industry loses $470 billion in Life and Property Insurance premiums every year because of poor customer experiences. However, artificial intelligence, in the form of chatbots, is bound to play a huge role in changing this statistic. Not only will it help the insurance sector improve their customer care services but it will also reduce the overall costs associated with customer care services, increase the quality of all insurance processes as well as gain more data from customers’ social profiles.

 

Chatbots and the Insurance Industry

 

The insurance industry has one of the most outdated processes in the entire world. Most of the processes used today were still in use decades ago. The few companies that have automated their processes have seen reduction in processing times, quality increase in their services and most importantly, more insurance holders. One form of automation that is poised to breathe new life back to the insurance industry is the use of chatbots. In the years to come, the adoption of this technology will be a significant factor for better service delivery and the profitability of insurance firms.

 

Marketing and Underwriting

The insurance industry is a highly competitive one full of strong marketing tactics. Chatbots offer a relevant marketing solution to them. By being able to pool customers’ data from their social media profiles, chatbots will be able to suggest relevant insurance packages that users might need. This means that chatbots can effectively be used to market potential insurance products according to the client’s social profile and needs.

Chatbots can also be used to obtain relevant information from potential customers in order to create the relevant premiums suitable for them. It can either make use of survey questions that are a common feature in manually applied insurance products or scan the customer’s social profile to find trends and patterns.

 

Claims Processing

According to research, more than 60% of insurance customers say that their choice of insurer is based on the company’s claims process and customer service. This means that many people are more inclined to find an insurer who has better claims processing and customer care services; regardless of the premiums that they will pay. Chatbots are essentially a great option for making the claims process simpler for customers. Artificial intelligence is making it easier for people to capture the damage, file the report and audit the system seamlessly without human intervention.

 

Fraudulent Claims Prevention

Fraudulent claims is one of the major challenges that have faced the global insurance industry for decades. It is estimated that fraudulent claims usually cost the insurance industry more than $40 billion every year.

Instead of having to rely on humans to process the claims, Artificial Intelligence can systematically identify the patterns surrounding the claims by processing different reports submitted via chatbots in order to capture inaccurate claims.

Companies which have automated their claims settlement process have been able to obtain better reviews, less processing times and have seen a significant reduction in fraudulent claims reporting.

 

Brand consistency through chatbots

As a company, you need to ensure that your brand is well represented by your customer care representatives. However, human beings have different tones and variations when delivering the same message. This leads to inconsistent messages to customers most of the time.

Unlike humans, chatbots usually relay the same branding message that the company would like their customers to see. This means that every time a customer accesses support services on the chatbot, they will get similar branding messages that they will always associate the company to. Strategic and consistent branding will definitely lead to more market equity or in this case, more customers.

 

Data

The insurance industry is largely driven by data, from the underwriting process to claims settlement. Chatbots can be programmed to mine individual data that is useful for each of these processes. Furthermore, given that it has access to all data on each customer; it has the ability of serving customers faster and more efficiently.

Insurance companies can also be more creative by linking different data streams to the chatbots as well. For example, many insurers who offer car insurance are giving their customers discounts for transmitting their driving data back to them. This allows the insurance company to effectively predict the riskiness of each individual and settle claims more easily based on their already existing data. Chatbots can then be programmed to tap into this data so as to offer a seamless claims process.

 

Testing of User Engagement and Push for Relevant Content

Insurance companies usually offer a wide range of products to their customers. Times are changing and so are the insurance policies on offer. Chatbots can be relevant in obtaining necessary data before rolling off a new policy. They can be used to get customer insight and feedback on whether the suggested policy will indeed offer a solution to clients’ needs.

Customer survey programs can also make use of chatbots. They (chatbots) can be used as a survey instrument for getting information about suggested policies that the insurer should have, feedback on their existing products or any complaints or issues that customers might have with the company.

 

24/7 Customer Service

 

Chatbots greatly increase the quality and efficiency of customer care support. Unlike human beings, chatbots can run endlessly. This means that customers can get assistance even past office hours, especially if their issue does not need a technical expert to converse with.

 

Conclusion


Statistics indicate that billions of messages are nowadays sent through social media platforms than ever before. This means that people are embracing texting and technology more than they did 10 years ago. The use of chatbots, especially in social media platforms, is poised to revolutionize the manner in which companies do their business. Chatbots are said to be the next tech frontier that will drive growth in businesses around the world. Not only does it present a cost-effective method for customer support, but it also provides an easy solution for reaching out to customers. The adoption of chatbots by a number of insurance companies will lead to another new era in the insurance industry; one that will be marked with efficiency, transparency and most importantly, great customer experiences.

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