THEFINANSOL 

Introduction

New technology is increasingly changing the way companies do their business. One such

technology that has taken many industries by storm is the use of chatbots in customer support

services. A chatbot is a program that has been designed to simulate chat instances with

customers. It is programmed to have natural language processing and usually makes use of

messaging apps that most users have on their phones. They work by processing either typed

or spoken words and providing personalized responses to the users. One such industry where

chatbots are poised to make a revolutionary difference is the insurance industry.

It is estimated that the global insurance industry loses $470 billion in Life and Property

Insurance premiums every year because of poor customer experiences. However, artificial

intelligence, in the form of chatbots, is bound to play a huge role in changing this statistic.

Not only will it help the insurance sector improve their customer care services but it will

also reduce the overall costs associated with customer care services, increase the quality of all

insurance processes as well as gain more data from customers’ social profiles.

Chatbots and the Insurance Industry

The insurance industry has one of the most outdated processes in the entire world. Most of

the processes used today were still in use decades ago. The few companies that have

automated their processes have seen reduction in processing times, quality increase in their

services and most importantly, more insurance holders. One form of automation that is poised

to breathe new life back to the insurance industry is the use of chatbots. In the years to come,

the adoption of this technology will be a significant factor for better service delivery and the

profitability of insurance firms.

Marketing and Underwriting

The insurance industry is a highly competitive one full of strong marketing tactics. Chatbots

offer a relevant marketing solution to them. By being able to pool customers’ data from their

social media profiles, chatbots will be able to suggest relevant insurance packages that users

might need. This means that chatbots can effectively be used to market potential insurance

products according to the client’s social profile and needs. 

Chatbots can also be used to obtain relevant information from potential customers in order to

create the relevant premiums suitable for them. It can either make use of survey questions

that are a common feature in manually applied insurance products or scan the customer’s

social profile to find trends and patterns.

Claims Processing

According to research, more than 60% of insurance customers say that their choice of insurer

is based on the company’s claims process and customer service. This means that many people

are more inclined to find an insurer who has better claims processing and customer care

services; regardless of the premiums that they will pay. Chatbots are essentially a great option

for making the claims process simpler for customers. Artificial intelligence is making it easier

for people to capture the damage, file the report and audit the system seamlessly without

human intervention. 

Fraudulent Claims Prevention

Fraudulent claims is one of the major challenges that have faced the global insurance industry

for decades. It is estimated that fraudulent claims usually cost the insurance industry more

than $40 billion every year.

Instead of having to rely on humans to process the claims, Artificial Intelligence can

systematically identify the patterns surrounding the claims by processing different reports

submitted via chatbots in order to capture inaccurate claims.

Companies which have automated their claims settlement process have been able to obtain

better reviews, less processing times and have seen a significant reduction in fraudulent

claims reporting.

Brand consistency through chatbots

As a company, you need to ensure that your brand is well represented by your customer care

representatives. However, human beings have different tones and variations when delivering

the same message. This leads to inconsistent messages to customers most of the time.

Unlike humans, chatbots usually relay the same branding message that the company would

like their customers to see. This means that every time a customer accesses support services

on the chatbot, they will get similar branding messages that they will always associate the

company to. Strategic and consistent branding will definitely lead to more market equity or in

this case, more customers.

Data

The insurance industry is largely driven by data, from the underwriting process to claims

settlement. Chatbots can be programmed to mine individual data that is useful for each of

these processes. Furthermore, given that it has access to all data on each customer; it has the

ability of serving customers faster and more efficiently.

Insurance companies can also be more creative by linking different data streams to the

chatbots as well. For example, many insurers who offer car insurance are giving their

customers discounts for transmitting their driving data back to them. This allows the

insurance company to effectively predict the riskiness of each individual and settle claims

more easily based on their already existing data. Chatbots can then be programmed to tap into

this data so as to offer a seamless claims process.

Testing of User Engagement and Push for Relevant Content

Insurance companies usually offer a wide range of products to their customers. Times are

changing and so are the insurance policies on offer. Chatbots can be relevant in obtaining

necessary data before rolling off a new policy. They can be used to get customer insight and

feedback on whether the suggested policy will indeed offer a solution to clients’ needs.

Customer survey programs can also make use of chatbots. They (chatbots) can be used as a

survey instrument for getting information about suggested policies that the insurer should

have, feedback on their existing products or any complaints or issues that customers might

have with the company.

24/7 Customer Service

Chatbots greatly increase the quality and efficiency of customer care support. Unlike human

beings, chatbots can run endlessly. This means that customers can get assistance even past

office hours, especially if their issue does not need a technical expert to converse with.

Conclusion

Statistics indicate that billions of messages are nowadays sent through social media platforms

than ever before. This means that people are embracing texting and technology more than

they did 10 years ago. The use of chatbots, especially in social media platforms, is poised to

revolutionize the manner in which companies do their business. Chatbots are said to be the

next tech frontier that will drive growth in businesses around the world. Not only does it

present a cost-effective method for customer support, but it also provides an easy solution for

reaching out to customers. The adoption of chatbots by a number of insurance companies will

lead to another new era in the insurance industry; one that will be marked with efficiency,

transparency and most importantly, great customer experiences.