Why Chatbots are Buzzing in The Insurance Sector
In 2017 PWC had published a report that the insurance industry had not accepted chatbots. But the world as we knew it then has changed in these 4 years since that report. In the U.S. more than 40 insurers have already integrated interactive chatbots into their daily business processes. These chatbots are helping customers to discover and purchase policies, make payments, and even file claims quickly.
What is a Chatbot?
Chatbots are computer programs but they are armed with Artificial Intelligence so that they can conduct a human-like conversation via text or auditory methods. When the AI programs are also programmed with NLP or Natural Language Processing then they can also use auditory methods to assist customers.
A new generation of AI virtual assistants have been developed to understand and converse in hundreds of different languages.
Lemonade, an InsurTech company in the U.S. that has taken digital innovation to its customers, is one of the best examples of the usage of chatbots. Jim and Maya ( as their chatbots have been named) can secure a policy for a consumer in as short a time as 90 seconds, they claim. A claim they say can be resolved in 3 minutes. Improved customer experience like this is exactly why insurers are looking to add chatbots to give their customers accessibility 24/7 and reduce long wait times.
Chatbots are not just customer-facing
Every time we read about chatbots; it is all about how they are revolutionizing the customer experience. The truth is there is another revolution happening much more quietly and that is the way interactive bots like Tara are making the life of insurance agents easier. Tara, the interactive Smart BOT from the stables of SimpleSolve, a US-based Insurtech company supports intelligent underwriting in ways that were not thought possible. It can prompt agents in real-time about high-risk concentrations just as an agent is quoting new business or even warn that the NB is a prior insured with claims. It can also help to upsell additional coverages based on the data that has been included in the insurance application.
Geico’s ‘Kate’, Progressive’s ‘Flo’, and All States ‘ABIE’ are prime instances of well-entrenched chatbots in the insurance space. Insurance companies will see more applications of AI and Machine Learning for insurance chatbots in the future. By 2025, the chatbot market is expected to reach USD $1.25 billion globally.
While it is possible to settle claims through these chatbots, they cannot replace human claim adjusters. These automated agents will be the first line of support for customers while the human employees will have the more complex tasks diverted to them.
