The Use Cases and Benefits of Conversational AI in the Insurance Industry

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The Use Cases and Benefits of Conversational AI in the Insurance Industry

With complex products, a lot of paperwork and complicated legal processes, insurance is challenging for customers. Insurance companies must realise that holding onto the old-school business method is standing between them and their goal: providing a satisfying customer experience to seal more deals and increase revenues.

Agility is a must to stay on track. Embracing the digital transformation trend ensures insurers are ahead of the curve when it comes to customers' evolving needs.

The use cases and benefits of conversational AI have the potential to revolutionise the insurance sector. Let's take a deeper look at that. 

But first, there are a few things we must establish about conversational AI chatbots and virtual agents:

  • They offer human-like interactions and maintain friendly, personalised experiences
  • They can learn and develop based on previous interactions without human intervention. 
  • They understand language variations, synonyms, dialects and even different languages. Yes! Multilingual chatbots exist.
  • They can interpret intent rather than analyse the individual meanings of words, e.g. a customer would say: "I think my policy will end soon," and the virtual agent would reply with a link to the policy renewal page.

Conversational AI Use Cases in the Insurance Industry  

Conversational AI can contribute to the insurance field in many ways, including:

Policy Servicing 

Today, individuals expect all businesses, including insurance companies, to provide a self-service platform. They want to avoid visiting the branch or talking to an agent; they wish to go through the purchase themselves at the time and place that suits them. 

Conversational AI can make this happen and provide an excellent self-service customer experience. By embedding a conversational AI chatbot or a virtual agent on the company's website and other online platforms, customers can inquire about the different types of policies, match features to their needs, compare premiums and eventually find the right policy. 

It would be like a questions and answers session. For example, the customer will initiate the conversation by saying: "tell me about your car insurance", and the virtual agent will reply: "what car are you insuring" to get more information about the car type, model, etc. 

The questions go back and forth, and the AI chatbot will act as an advisor and suggest the policies that will fit the customer's specific needs. 

The chatbot may even outperform actual agents, as they are able to retrieve information about coverage clauses, term limits, renewal processes, and other insurance-related details within minutes.

Calculating Premiums and Generating Quotes

Conversational AI chatbots can generate quotes and calculate the premiums based on the data they collect and with no need for a human agent. They account for every factor, e.g., age, income group, insurance and credit history, to provide customers with accurate results. 

Claim Settlement  

The quicker the claim settlement is, the more customers are satisfied with the service. Customers will inform the AI chatbot of the nature of their claim, e.g., "someone hit my car", and the chatbot will instantly navigate the insurance company's database to extract all their policy information and guide them through the claim process. No frustration or long wait times.

Answering Repetitive Questions and Sending Reminders 

How can I pay my premium? When is my next payment due? I lost my card, what should I do? All these are repetitive questions insurance customers ask human agents. Chatbots can take up this task and provide quick answers. They also can be used to send reminders about upcoming premium payments and renewal dates. 

The Benefits of Conversational AI in Insurance

Looking at the use cases, this revolutionary technology sets insurance companies up for guaranteed success. Here are some of the benefits of conversational AI:

24/7 Multilingual Support

24/7 availability is one of the most significant benefits of conversational AI. Day or night, during or after working hours, conversational AI enables insurance companies to support their customers at all times and provide them with immediate responses. 

Growing the Company's Database

Data is the essence of the insurance industry. One of the benefits of conversational AI chatbots is that they collect contact data from their interactions with prospects, allowing insurance companies to expand their promotional circle for upcoming products.

Increasing Productivity 

Another key benefit of conversational AI is increasing employees' productivity. When they don't have to deal with repetitive questions and mundane tasks, employees will have the time to resolve more sensitive issues which can not be automated. 

Scaling Up

A larger target audience equals more revenues, but what role do conversational AI play here? Using conversational AI within the insurance field helps companies to overcome language and geographical limits and reach new markets. 

An Elevated Customer Experience

Enhancing the customer experience is the ultimate goal, and conversational AI hits the target every time. It enables insurance companies to provide self-service options through multiple communication channels, including their website, social media and messaging apps. Most importantly, customers don't have to wait for opening hours; their concerns are addressed instantly.

Improving Brand Image

A company that is always there for customers anchors itself as a reliable choice and reflects a positive image for those browsing feedback to find their new insurance company.
Why EDC's Conversational AI Solution?
Your success is our priority. Our conversational AI platform is equipped with an intent manager, conversational builder, conversational orchestrator, conversational manager and conversational analytics to ensure your customers have the help they need at any given time. 

Our platform offers a personalised, multilingual, omnichannel experience, allowing you to maintain human-like interactions and meet customers through their favourite channels, including WhatsApp, web messaging, app messaging, email and SMS.

Request a demo today to learn more about our conversational AI solution.