What Is an Insurance Chatbot? (+Use Cases, Examples)

If you are looking to automate repetitive tasks in your insurance company, you have probably come across insurance chatbots.

You can implement either new technologies or adopt competitors’ strategies to ensure your customers win and enjoy the benefits in your watch. They can create an excellent customer experience for your policyholders and take the burden off your agents. Insurance chatbots have a wide range of uses, from generating leads to providing customer service.

Below you will discover all the necessary information to establish an insurance chatbot and embark on your initial stages of digital revolution.

What Is An Insurance Chatbot?

An insurance chatbot is a virtual assistant that facilitates communication between customers and an insurance company, using AI-powered or rule-based technology.

The agent creates workflows to map out the most common scenarios and answer standard user questions. Chatbots in the insurance industry can start conversations and provide support based on predefined rules and process requests.

Rule-based chatbots can be employed to address fundamental issues, but they do not offer the complete array of functionalities that AI chatbots offer.

AI-driven chatbots, which are virtual assistants trained to simulate human-like conversations, can be helpful in a lot more scenarios than rule-based chatbots. They can independently process pre-defined queries, reply to user intents, and understand requests.

Before AI chatbots can effectively carry out their tasks, they need to undergo training. The bot should acquire knowledge of relevant keywords and their corresponding synonyms, recognize frequently asked questions (FAQs), and grasp the intentions of customers. The training phase is brief, allowing you to quickly begin utilizing your chatbot.

Coupled with robust insurance technology, AI chatbots aid in underwriting, customer assistance, fraud identification, and various other insurance functions.

Benefits Of Insurance Chatbots

With a suitable arrangement, your representatives and clients experience a variety of advantages with insurance chatbots.

1. 24/7 Customer support

Insurance chatbots, whether rule-based or AI-powered, provide round-the-clock customer support. You can contact them at any time and receive an instant response, which will surely delight customers as it eliminates any waiting time or overlooked conversations.

2. Easy claims processing and settlement

Chatbots are used by insurance companies to make customers happy by processing 44 percent of claims. Chatbots make it easier to track the status of settlement claims and report incidents.

3. Security

If you develop an advanced automated workflow, your chatbot will handle everything on its own, eliminating the need for your employees to grant access to customers’ sensitive information. There is no need to be concerned about the security of your customer data when using high-quality chatbot software.

4. Multilingual support

How many languages do your agents speak? A chatbot can support dozens of languages without the need to hire more support agents.

5. Cost reduction

Chatbots helped businesses cut down on $8 billion worth of expenses in 2022 by saving the time agents would have otherwise devoted to interacting with customers.

Your chatbot will handle any number of requests, eliminating the need to expand your support team by hiring additional agents. Additionally, there is no requirement to recruit more agents.

6. Improve agent productivity

If you’re seeking a method to boost your employees’ productivity, the initial action you should take is to integrate a chatbot. AI chatbots allow agents to devote a significant portion of their time, specifically sixty-four percent, to resolving intricate problems.

7. More engaged customers

Insurance chatbots helps improve customer engagement by providing assistance to customers any time without having to wait for hours on the phone.

If you integrate your chatbot with your CRM system, it would mean that your chatbot AI can deliver better and faster conversations than human agents, and it will also be able to find an excellent customer experience, as it will have more data on your customers than any human agent.

8. Lead generation

You just need to add a contact form to the bot to talk to users before filling out. A chatbot is the perfect tool for lead generation without any pressure.

Top 8 Use Cases of Insurance Chatbots

What precisely can an insurance chatbot accomplish for you? Here are eight concepts for how you can utilize insurance chatbots.

1. Policy management

A chatbot, when integrated with your business toolkit, can assist in the complete policy management cycle. Your customers have the option to utilize it for applying for a policy, updating account details, changing policy types, ordering an insurance card, and more.

2. Advertising and promotion

Chatbots are frequently used to provide support for lead generation and promotional campaigns in marketing teams. You can use chatbot insurance to capture leads, promote whitepapers, and inform users about discounts.

Advertising and promotion

A case of Intercom utilizing a conversation box to advertise novel product characteristics.

3. Claims processing and settlement

An insurance chatbot can handle the entire process of updating and reporting incidents to customers, as well as settling and managing claims, effectively assisting insurance companies in handling claims.

Policyholders already experience enough stress from the incidents themselves. The situation only becomes more difficult when they have to wait for hours or even days for insurance agents to respond. A policyholder is available to help with submitting an FNOL, updating claim information, and monitoring claims. It can also assist with claim verification, assessment, and resolution, allowing your agents to concentrate on the more intricate tasks that require human intelligence.

4. Payment collection

Chatbots facilitate a seamless and effortless payment procedure for your current clientele.

Can you use the bot to remind policyholders of upcoming payments? The bot can provide a simple form for customers, automatically fill in customer data, integrate with a third-party payment system for processing payments, and also handle payment collection with customer data.

5. Feedback and loyalty

Another straightforward yet efficient application for an insurance chatbot is gathering feedback.

Whether you choose to use a detailed customer experience questionnaire, a chatbot, or a simple Net Promoter Score (NPS) survey, any other method can help attract more user attention and drive.

By collecting data, you will improve the performance of your chatbot and ensure that it effectively handles and processes claims or requests.

customer feedback

6. Provide advice and information

The most obvious use case for a chatbot is handling frequently asked questions from customers and prospects, where a virtual assistant collects data and troubleshoots scenarios by asking human-like questions to resolve complex issues.

Link your chatbot to your knowledge management system, and you will no longer have to allocate time responding to fundamental inquiries.

7. Cross-selling and upselling

Using a chatbot to gain new customers is good. But the marketing capabilities of insurance chatbots aren’t limited to new customer acquisition.

You can utilize your chatbot to run upselling and cross-selling campaigns. Upgrading current customers or providing them with complementary products are the two most efficient tactics to enhance business profits without any additional investment.

Provide your chatbot with customer data, including their current plan, demographics, and claims history, to ensure it can present the most suitable offers to users.

cross-selling

How SWICA promotes additional products using the assistance of a chatbot.

8. Fraud detection

According to McKinsey, AI chatbots will become integrated into the process by 2030. They anticipate that AI-powered technology will emerge as a dominant approach for recognizing risks and uncovering fraudulent activities.

However, you don’t have to wait until 2030 to start integrating AI and software detection with chatbot for insurance fraud prevention. Investigating the claim and processing too many resources before detecting fraudulent activity can be done through the integration of chatbots with AI and software detection.

salesforce-adoption-gif

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5 Examples of Insurance Chatbots

To demonstrate this, let’s examine a few instances of insurance chatbots. Effective insurers heavily depend on automation in various customer interactions, marketing efforts, claims handling, and fraud detection.

1. GEICO

Questions policy and insurance with customers and prospects company’s the helps assistant virtual user-friendly a built has company insurance auto an GEICO.

Instead of creating one for you, the bot will direct you to a sales page if you desire to obtain a quote. However, it does not manage inquiries; GEICO’s virtual assistant initiates conversations and supplies the required details.

If you enter a customized question, a pertinent hyperlink will be given to you, and it will comprehend your requirements. The conversational AI is proficient in identifying the affirmative purpose of messages.

GEICO

The chatbot can even create GEICO help, providing assistance to users who didn’t specify exactly what they liked or disliked. Users can also leave comments to specify their feedback. The bot asks how you would rate the help provided and whether the issue was resolved when having a conversation over it.

GEICO virtual assistant

2. SWICA

SWICA, a health insurance provider, has developed a highly advanced chatbot for customer support.

The new member of the family can register and request an insurance card that includes accident coverage, update an address, and change franchises within the chat window. Additionally, the chatbot handles policy changes without redirecting users to a different page, but it only provides answers to FAQs and does not handle any other tasks.

SWICA

3. Sensely

Sensely is a conversational AI platform that helps patients with insurance policies and healthcare services.

Sensely’s insurance chatbot, powered by artificial intelligence, exemplifies excellence. Customers rely on Sensely’s virtual assistant whenever assistance is required. The chatbot effectively evaluates symptoms, monitors chronic conditions, assesses health risks, and enhances patient engagement through Sensely’s services.

Sensely

4. Insurify

Insurify, a website that compares insurance options, was one of the early pioneers in implementing chatbots in the insurance sector.

The bot operates within the Facebook Messenger. It uses machine learning technologies and natural language processing to process text messages, but not pictures. It asks users a sequence of clarifying questions to help them find the right insurance policy based on their needs.

Insurify

5. Lemonade

Lemonade, an AI-powered insurance company, has developed a chatbot that guides policyholders throughout their entire customer journey. Users can turn to the bot to make claims, receive status updates, file payments, and apply for policies without having to call a single phone call.

A few years ago, Lemonade’s chatbot, Maya, broke the world record by processing and paying the $979 claim in under 3 seconds.

Lemonade

5 Best Tools for Creating Insurance Chatbots

Looking to create an insurance chatbot as quickly as possible? Here are five resources that can assist you with that.

Haptik

1. Haptik

Haptik is a conversational artificial intelligence platform assisting various industries in enhancing customer experiences through omnichannel chatbots.

You can build an insurance chatbot for your Facebook website using Haptik’s intelligent virtual assistants, which efficiently handle claims, manage payments, and help customers with their insurance policies. Additionally, Haptik’s virtual assistants can be integrated with Messenger Business, Google SMS, Direct Instagram Messenger, and other platforms.

Haptik

Snatchbot

2. Snatchbot

SnatchBot is a smart virtual assistant platform that supports the automation of processes.

SnatchBot’s virtual assistants can be employed on various channels. You can run more sentiment analysis and translate messages into multiple languages, send broadcasts, and build complex automation workflows. The platform has little to no limitations on what kind of bots you can build.

With a clear pricing structure, Snatchbot appears to be a highly cost-effective solution for insurance companies.

Snatchbot

Inbenta

3. Inbenta

Inbenta is a platform that offers a conversational chatbot experience, using RPA (Robotic Process Automation) to manage changes to orders, handle meetings, bookings, and transactions, among other features.

Inbenta asserts to provide conversational artificial intelligence with no need for training.

Inbenta

Acquire

4. Acquire

Acquire is a customer service platform that simplifies AI chatbots, real-time chat, and video calling.

You do not need any coding expertise to generate intricate sequences and paths. AI is capable of performing this task on your behalf, or alternatively, you can manually outline dialogues using Acquire.

Acquire

yellow.ai

5. Yellow.ai

Yellow.Ai serves as a conversational AI platform for businesses. The platform offers an extensive range of resources for automating insurance processes and customer interactions.

If you are seeking a solution that is highly customizable to construct dynamic conversation journeys and automate intricate insurance processes, Yellow.Ai is the appropriate choice for you.

Yellow.ai

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Discover more about embracing the digital revolution for your insurance enterprise today!

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