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    How Chatbot is Transforming Insurance Industry


    How Chatbot is Transforming Insurance Industry

    In today’s world of digital disruption, every consumer wished his insurance company to respond instantly and expect much lesser time to file a claim or satisfy his demand for knowing the processing time.

    Hence, the insurance Industry, although believed to be a latent adaptor of technology, is now pacing in the lane of modernization to create new insurance products, a much responsive services, and an agile business model.  AI could be an example of it – you may be aware that the charm of artificial intelligence is spreading across many industries, but that the insurance industry outspends 12 other major industries when it comes to investing in AI. According to the Global Trends Study 2017, insurance invests an average of $124 million per company in this alluring technology. That’s $54 million more than the average across all industries surveyed.

    According to Business Insider, 80 percent of businesses want to use chatbots by 2020. The insurance industry is a particularly enthusiastic early adopter of the technology and has been experimenting with it for a decade. Business Insider estimates that chatbots could save the industry $12 billion dollars in labor costs. Here are the roles chatbot technology is currently playing in insurance enterprises:


    Chatbots can reduce customer confusion

    According to a recent survey, 75 percent of consumers agree that insurance companies use confusing jargon, which can be quite frustrating and time consuming for them. A chatbot can help in reducing- even eliminating potential confusion by putting complex terms into more straightforward language and walking new customers through simple steps.


    Chatbots are available 24/7

    Unfortunately, no one can control when something happens that will require an insurance claim. Car accidents, home damage, and life-threatening events can and do occur at all hours of the day and night, and customers often find themselves constrained to calling within business hours if they need assistance filing a claim. But a chatbot can be available at any time. Plus, it remains unaffected by high call volume, so customers don’t have to sit on hold for an hour or longer.


    Chatbots streamline tedious processes

    A chatbot has the capability to cut down on redundant paperwork and unnecessary steps in an insurance claims process that many customers currently dread. Insurance company Lemonade asserts that, as early as 2016, its chatbot Jim settled a claim within 3 seconds. Now, not every insurance bot will settle every claim that quickly, but undoubtedly insurance wait times and overall process duration will be significantly reduced using AI.


    Now, when you know the how Chatbot can benefit your Insurance company, let’s have a look at some of the key things to look out for while picking a chatbot stack for your enterprise are:

    Backend Integration – Your Bot will only be meaningful if it gets controlled yet easy access to your legacy systems. How difficult is it to get access to your backend services?

    Ease of Conversation Building – How easily can you build and enhance bot conversations. Can the Line of Business participate easily in this exercise?

    Chatbot Analytics – Can the Line of Business and IT measure the effectiveness of the Bot and view past conversations to improve bot performance?

    Training the Bot – Is there an easy to use interface for training the bot? Can the Bot self-learn, and can business and IT easily collaborate to train the bot?

    Security & Governance – Is the platform secure and will it give a central governance mechanism for IT to manage backend system access?

     Chat Client Compatibility – Is the Chatbot technology stack compliant with a variety of chat clients available in the market today such as FB Messenger? Can it easily hand over the bot conversation to a live Rep if the Chatbot hits a wall with the ongoing conversation? This is imperative for a good bot experience and adoption of the Chatbot.

    Omni-Channel Platform – Above all, you need to ensure a way to keep all your channels in sync. Provide the same interface and access to information across all channels including web, mobile and now Chatbot. What happens when the LOB requires a change in one of the interfaces? Do you have to then manually update all other channels and keep them in sync?


    Thinking through the above points will ensure that you have the right technology stack as you embrace this futuristic technology. Just like all other technology initiatives picking the right tools, team and partner is the key to success.

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