Insurance has an impact on almost every other industry and business on earth, as well as a large proportion of individuals. But for such a staggeringly large-scale and vital industry, many practices are still outdated.
While many insurers have implemented some forms of technology to modernize operations, many parts of the chain are still less efficient than they could be. From an over-reliance on call centers to the prevalence of manual data entry, and more, many insurers are struggling to keep up with relevant advancements.
As in any business, technology has the power to transform insurance for the better. One example of such technology is chatbots, or virtual assistants, especially AI chatbots. In this blog, we take a look at some specific examples of how AI chatbots can be used to automate and improve vital parts of insurance operations.
What are AI chatbots for insurance?
All chatbots operate in a fundamentally similar way, conversing with human users via a text-based instant messaging format. The chatbots can then perform a different range of functions, based on how advanced they are and what they’ve been designed to do.
With insurance chatbots, the programs have simply been designed to work in an insurance-related context. For example, they may be able to answer insurance-focused questions, link users to appropriate departments, and so on.
AI chatbots take the functionality a step further by enabling the chatbots to understand a far greater range of language and intent. They can also often be integrated with other IT systems more readily, helping to create a more seamless service.
Potential use cases for AI chatbots for insurance
Personalized guidance and answers
A large part of any insurance operation is dealing with customers, and the majority of these interactions are likely to be simple queries, complaints, or requests. Not long ago, insurance had to choose between expensive call centers to handle these largely very straightforward interactions, or to use primitive chatbots that could lead to customer alienation.
AI chatbots offer an optimal middle-ground, giving insurers the option to reduce expenditure on cumbersome call centers without sacrificing the personal, flexible responsiveness that ensures customer needs are always catered to.
Fraud detection and prevention
Fraud is a huge issue for insurers around the world, so the detection and prevention of it takes up significant resources at the expense of insurers. Furthermore, much of the fraud detection process still centers around human checks, which are slow and expensive. While human intervention will always be necessary to some extent, the more that technology can take over the better for insurers’ bottom lines.
AI-based chatbots can take some of the load away from fraud teams by performing automated checks on submitted details, cross-checking against existing records, checking for inconsistencies, and more.
Providing customers with quotes
Possibly the most common interaction between customers and insurers is regarding quote requests. Specialized AI chatbots for insurance can take over part of the quoting process, streamlining the process for everyone involved. Using advanced algorithms to process customer details, the chatbots can then rapidly offer highly tailored and accurate estimates.
AI chatbots can also easily be integrated to work seamlessly with GPS locational data, such as that provided by smartphones, to offer location-based assistance. For example, users could simply ask where the nearest branch is and the chatbot could instantly bring up relevant locations, give directions, and so on.
Cross-selling and upselling
Another huge benefit of having an interactive channel to converse with your customers is the ability to cross-sell and upsell products and services. AI capabilities can help your chatbots analyze specific situations, gather data about individuals, and offer targeted useful promotions and recommendations. This can result in higher conversions and higher returns per customer, without feeling intrusive from their perspective.
Receiving claims information
AI virtual assistants can give customers a straightforward, fast way to submit any necessary details about claims. This works well for simple information like names and other general info, but can also work for more complex information.
An important part of the claims process for many insurers is assessing damage to determine the strength and value of claims. AI can be used to automate parts of this process by allowing customers to submit damage reports, send photos, and more. This takes away the need for human intervention in many parts of the process, saving your workers time, while also keeping the process simple and responsive for your customers.
Issuing decisions and settlements
The main thing that most claimants are concerned with is whether their claim has been successful or not, as well as the value of any settlements made. AI assistants can also help with this, automatically issuing information and updates about decision-making and even the results of settlements.
Keeping customers informed
Communication is key to building and maintaining customer relationships, but sometimes it’s simply not possible to provide the optimal level of attention. By maintaining an open line of communication, chatbot virtual assistants help to keep customers informed about anything they need, issue targeted notifications and more.
Find out how Skil.AI could automate key parts of your insurance business
At Skil.AI, we create custom AI chatbots and virtual assistants for all kinds of businesses, including insurers. We build our virtual assistants using advanced AI and machine learning technology, giving them the capability to learn over time, seamlessly integrate, and offer you and your customers’ time-saving automation benefits.
Get in touch with the team today to find out more and see Skil.AI in action