Blog Post

Insurance Chatbot Guide (5 Benefits & 3 Use Cases)

Blog Post

Will Roberts Profile

Will Roberts

Senior PMM
Ushur
in

Conversational AI is revolutionizing the insurance industry. Chatbots can now handle a wide range of customer interactions, from answering simple questions to processing claims. This is helping insurance companies improve customer satisfaction, reduce costs, and free up agents to focus on more complex issues.

In this guide, we will explore the value of chatbots for insurance. We will discuss where chatbots are best positioned to offer strategic value, how to incorporate chatbots into a carrier's overall customer experience strategy, and the challenges of implementing chatbots.

We believe that chatbots have the potential to transform the insurance industry. By providing 24/7 customer service, chatbots can help insurance companies to meet the needs of today's customers.

What Is an Insurance Chatbot?

Chatbots are software programs that simulate conversations with people using unstructured dialogue. They are often used in the insurance industry to streamline customer interactions and provide 24/7 support.

There are two main types of insurance chatbots: rule-based chatbots and AI-powered chatbots.

  • Rule-based chatbots: These chatbots are designed to follow a specific set of rules. They can answer simple questions, but they are not able to learn or adapt.
  • AI-powered chatbots: These chatbots use machine learning to understand and respond to customer queries. They are more flexible and can handle more complex requests.

AI-powered chatbots can be used to do everything from learning more about insurance policies to submitting claims. They can also be used to provide customer support in real time.

Here are some examples of how insurance chatbots are being used:

  • Answering customer questions: Chatbots can be used to answer customer questions about insurance policies, coverage, and claims. This can free up customer service representatives to focus on more complex issues.
  • Providing quotes: Chatbots can be used to provide quotes for different types of insurance policies. This is a convenient way for customers to get quotes without having to call a customer service representative.
  • Submitting claims: Chatbots can be used to submit claims for insurance. This can be a convenient way for customers to file claims without having to mail or fax paperwork.
  • Providing customer support: Chatbots can be used to provide customer support in real time. This can be helpful for customers who have questions or problems with their insurance policies.

Chatbots are a valuable tool for the insurance industry. They help to improve customer satisfaction, reduce costs, and free up customer service representatives to focus on more complex issues.

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5 Insurance Chatbot Benefits

An insurance chatbot offers considerable benefits to both a carrier and its customers by combining the flexibility of conversational AI and the scalability of automation. A chatbot is one of multiple channels a company can utilize when speaking with their customers in the manner and method they desire.

By using chatbots to streamline insurance conversations, your company can elevate and optimize processes across the entire insurance business.

1. 24/7 Support

Chatbots help insurance companies meet the demands of a 24/7 world. These digital agents answer questions, provide quotes, and even initiate claims at any time of day. This is a major improvement over traditional call centers, which are usually only available during business hours.

Chatbots also help customers compare plans and find the best coverage for their needs. This can be a complex process, but chatbots can simplify it by asking the right questions and providing personalized recommendations.

2. More Meaningful Interactions

Chatbots can handle customer questions and routine requests, freeing up agents to focus on more complex issues, in some cases, leading to a 70% reduction in phone calls, emails, and person-to-person chats. This reduction allows agents more time to focus on meaningful, high-value engagements that better customer interactions. Further, offering self-service channels that can handle more complex or dynamic interaction types can greatly improve customer experiences.

Chatbots can also help streamline insurance processes and improve efficiency. This is especially important for smaller companies that may not be able to afford to hire and train a large number of employees.

3. Lower Operating Costs

When chatbots can quickly handle customer questions and routine requests, they produce significant operating expense reductions. In the insurance industry that’s especially important because carriers are under increased pressure to reduce expenses wherever possible in a volatile economic climate.

Throughout the insurance journey, a chatbot can reduce the need for prospects and customers to reach into a costly enterprise service center, making a carrier’s personnel more readily accessible for inquiries that are more complex, or when a person-to-person interaction is what the caller prefers. This helps to streamline insurance processes for greater efficiency and, in turn, savings.

For smaller companies not quite ready to ramp up their operations, a chatbot can save the time and cost of having to hire and train employees.

4. Lead Generation

Chatbots can automatically generate leads for insurance companies. By engaging visitors to a carrier's website, social media, and other online touchpoints, chatbots can collect information about their needs and answer their questions. This data can then be used to further the conversation and relationship, or to generate leads for sales teams.

Chatbots are a valuable tool for insurance companies that are looking to increase customer acquisition. They can help to speed up the lead generation process and gather more relevant information from prospects.

5. Internal System Integration

An AI-powered chatbot can integrate with an insurance company’s core systems, CRM, and workflow management tools to further improve customer experience and operational efficiency. Robust integrations provide tremendous value because they turn a virtual assistant into a comprehensive solution that’s continuously updated with the most current customer, product, and service details for a tailored experience, after they have been authenticated, of course.

3 Insurance Chatbot Use Cases

Conversational AI can be used throughout the insurance customer journey, from marketing to claims. It can improve customer satisfaction, reduce costs, and free up agents. However, it's important to start small and scale up as the chatbot becomes more accurate.

1. Answer FAQs and Provide Policy Information

Chatbots use natural language processing to understand customer queries, even if they are phrased in a casual way. This results in a more satisfying and frictionless customer experience. Additionally, chatbots can be easily integrated with a company's knowledge base, making it easy to provide customers with accurate information on products or services.

2. Onboard Customers and Manage Policies

Virtual assistants can help new customers get the most out of their insurance by providing guided onboarding and answering common questions. Chatbots can also support omnichannel customer service, making it easy for customers to switch between channels without having to repeat themselves. This streamlines the policyholder journey and makes it easier for customers to get the help they need.

3. File and Process Claims

AI-enabled chatbots can streamline the insurance claim filing process by collecting the relevant information from multiple channels and providing assistance 24/7. This eliminates the need for multiple phone calls and waiting on hold, and it can also help to prevent claims from being delayed due to missing information. Additionally, chatbots can be used to proactively reach out to policyholders before, during, or after a catastrophic event to provide information and assistance. This can help to reduce the frequency and severity of losses, and it can also alleviate demand on the call center during peak times.

Ushur’s Customer Experience Automation™ (CXA) provides digital customer self-service and intelligent automation through its no-code, API-driven platform. Ushur’s CXA platform makes it easy to train and deploy a chatbot. Insurers can also use Ushur within citizen developer teams to open voice, email, text, and other messenger channels for customers, members, claimants, agents, brokers, and providers to converse with them and build an overarching comprehensive and differentiating customer experience. Insurance brands can use Ushur to send information proactively using the channels customers prefer, like their mobile phones, but also receive critical customer data to update core systems. Insurers don’t have to replace core systems–they can integrate Ushur.

If your organization needs help in designing an end-to-end customer engagement strategy that includes a consistent brand experience across the full insurance lifecycle, and is considering implementing chatbot platforms or other insurance automation processes for insurance, contact us today for a consultation on insurance automation best practices.

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