How chatbots are changing the insurance industry | PropertyCasualty360

A chatbot is essentially an intelligent digital tool that can help customers deal with important, and possibly unrelated, issues related to sales and service. (Photo: tippapatt/Adobe Stock)

The use of chatbots is growing in all areas of the economy, especially in industries such as insurance where customer interaction is a constant. In fact, starting in 2019, the use of chatbots as a means of communication almost doubledthat two-thirds of the world’s consumers you have experienced one in the past year.

But not all insurance companies are seeing the same returns from chatbot technology. Unlike customer progress, chatbots are not a plug-and-play or set-and-forget platform. Instead, they should focus on specific customer-facing needs, and then carefully plan over time to account for the changing needs and expectations of the increasingly diverse consumer base. If they get it wrong, chatbots can lead to frustration and resentment towards the company, which not only leads to customer attrition but also tarnishes social media and word of mouth in ways that can hinder future performance.

So while the desire to quickly deploy chatbots may be strong, insurance companies would be wise to take a moment to understand this technology and how it should be used to create a profitable opportunity that produces greater value for the customer and provider.

A robot assistant

A chatbot is essentially an intelligent digital tool that can help customers deal with important, and possibly unrelated, issues related to sales and service. This is a breakthrough in voice-activated communication because the chatbot can ask for information from a variety of sources to support customers through all interactions with the company. Rather than limiting questions to a set of pre-defined options, a chatbot can understand and respond to a variety of requests, and can do so in a more natural, conversational way than simple words.

It doesn’t take much imagination to see how this can improve customer relations, especially in a complex industry like insurance. For one thing, long waits for a live customer representative are a thing of the past. In most cases, customer inquiries are routine, needing to deal with the payment process, changes in coverage and so on. Chatbots can not only solve this issue faster than a live agent, but they can also quickly determine if the requests are beyond their control and should be passed on to a human operator, helping to manage even these difficult, time-consuming problems.

At the same time, this reduces the company’s income. As more and more questions are being answered automatically, organizations will benefit greatly from a chatbot platform and call center operators as they will both be solving the problems they need to solve. And since the chatbot can analyze a lot of information while providing customer service, it can identify and control things that the customer is not aware of and direct them to other things that they may not be aware of, thus generating new revenue streams and cross-channel marketing opportunities.

It also goes without saying that chatbots are available 24/7/365 and don’t take vacations, sick days or your time. They also do not receive remuneration or seek similar benefits or benefits to settle interpersonal disputes, issues related to advancement and promotion or the workplace.

Chatbots are working

While chatbots may be a relatively new technology in digital business, they are already delivering significant results in real-world manufacturing environments. Verizon, for one thing, they use them a lot to solve the first customer service questions and they try to use human resources and technology to create a “human connection” with users. To date, more than half of respondents are comfortable with automated systems, while more than three-quarters prefer human technology services to human-only services.

The Transportation Security Administration (TSA) is also using chatbots and social media to reduce check-in times without compromising security and safety. The organization helps them to answer common questions on topics such as prohibited substances and screening methods. This way, answers can be given within two minutes as opposed to an hour and a half for the check-in system, which usually takes a long time after the flight and the passenger have taken off.

Meanwhile, Bank of America has made its service, called Erica, available to more than 19.5 million customers and has interacted with more than 100 million users, showing a success rate of more than 90% in effective responses. The company says that the success of the platform is based on two main factors: The ability to answer important questions quickly and accurately, and the ability to have a direct conversation like a whistleblower or a caller.

Of course, to achieve this capability, chatbots require advanced technology. First, it needs support from large, robust sources to obtain the data it needs to provide effective service; but this is more than server, storage and network technology. Major resources should be devoted to data processing and planning to ensure that the system can interpret information in an appropriate manner and is not affected by bias, errors, unnecessary or other limitations.

Telling stories

Another important aspect of chatbot graphics is advanced language skills. This relies on a form of artificial intelligence called Natural Language Processing (NLP), which uses advanced algorithms and high-speed processing to deliver the kind of conversation that users say is most enjoyable. Recently, NLP has changed with new types of symbolic understanding (NLU symbolic) which is closely related to the human brain’s ability to language and interpret the purpose of language, not the literal meaning of words.

Other types of AI, such as machine learning (ML), as well as key technologies such as keyword recognition and dynamic pricing, are being used to create different chatbots, each tailored to a specific customer-facing role as well. back office software. Some bots, for example, only need to provide limited support based on pre-selected data sets, while others can learn from their interactions to provide more and more responsive responses as their data sets change.

Perhaps more than any other technology entering the workplace today, chatbots hold the greatest promise when it comes to transforming 21st century businesses.St-the economy of the century. Today’s businesses are moving at the speed of electrons, which means that customer communications must be fast and efficient on a global scale – and all of this must be done in a global marketplace.

Trying to meet these needs with human resources is very expensive and ineffective considering the number of questions coming in and the amount of data that needs to be shared to produce satisfactory results. Machines like chatbots cannot replace human workers, but they do wonders to enhance their ability to interact with customers and provide timely and effective solutions to their problems.

And as has always been done in business, make sure that a happy customer remains a loyal customer.

Pamela Negosanti ([email protected]) is the global insurance head at