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Insurance chatbot- Trends, benefits and challenges

Manpreet Kalsi
|
6
min read
Insurance chatbot- Trends, benefits and challenges

Life can come at you in unpredictable ways, and having yourself safely insured is always a smart investment plan. The core of any insurance plan is to provide you with protection. Making small investments in insurance can provide you with financial security in advance. Now, with technological advancements and messaging platforms growing popular, the insurance sector has seen a significant surge in the way it has been running all along. Insurance is a data-driven sector and in the last many years, data corruption has been a persistent problem in this sector. Hence, AI-driven chatbots are a boon! 

Making use of chatbots, the insurance companies have been able to uplift their services, communication, efficiency, and customer support. So in this blog, let’s dig a little deep into how chatbots for insurance are proving to be advantageous.

Trend- Insurance chatbots for agents?

Insurance Chatbots are growing into the hottest trends in technology for the last 2 years. Chatbots algorithms that enable intelligent conversations with humans are now being used to assist both customers and agents in many areas of the insurance sector. These insurance chatbots enable new functionalities by assisting hundreds of queries all at the same time, and as more companies come up with newer technologies to make bots more intelligent, they’re bound to offer more applications in the insurance industry in the coming years! 

Though insurers have been using voice assistants at call centers for a while now, the development of new technologies has been enabling far more complex interactions. Chatbots for insurance are being used extensively within the industry to support agents, and customer applications such as onboarding new clients, processing claims and renewals. Even though chatbots offer many benefits, insurers must make sure they’re being supported with the right intelligent tool.


Challenges in the insurance industry

Today, the insurance industry faces countless challenges. With the world becoming more digital each day, consumer expectations change at a rapid pace. Consumers look for policies from online websites and compare prices themselves before contacting an agent. As information has been made easily available to the consumers, the insurance industry can use insurance bots to overcome these commonly faced challenges to build better relationships with their policyholders.

Consumers don't easily trust insurance companies 

According to a recent survey, people trust insurance companies way less than they trust any other sector. People are very hesitant to invest their money in insurance. They’re always looking out for any hidden clauses in the policy fearing of ending up with something they don’t want to buy, while the insurance companies are often labeled with a bad reputation if they’re open about their policy!

To overcome this, insurance companies are building website chatbots that can make quick and reliable engagements while building trust among its users. Insurance Chatbots communicate with the consumers, provide them with details and quick solutions in simple language which builds a good rapport between the consumers and the brand.

Consumers don't always understand the policy properly

People lack proper knowledge bases about insurance policies and their advantages, which makes it even more difficult for insurance companies to sell their products. This can be easily solved with online insurance chatbots. Insurance companies usually have a web of complex technical terms that are hard to understand from a layman’s perspective. Chatbots can easily communicate these terms to the customers in an interactive manner using simple language, aiding customers in having a clearer picture of the policy and many things as such.

Insurance claims and renewals are complicated processes 

Insurance claims and renewals have always been a complicated process and time-consuming when done manually. That’s why insurance companies are building chatbots that allow customers to make claims or renewals directly through the chatbot and there is no need for a live agent to do so. This automation in claims and renewals has made the whole process really quick and easy, both for the agents as well as the policyholders.

Consumers have different communication-preferences

Consumer-company interactions happen in three ways- online communication via texts, talking over the phone, or in-person meetings. As more and more people turn towards messaging as their chosen communication medium, insurance companies have to cater to this preference quickly. And what better online conversational tool than a chatbot? Insurance chatbots become the ideal customer support agents the buyers are looking for. They’re always available, you can just drop in a text and have a solution/reply immediately!

New ways in which chatbots can transform insurance

Chatbots are bound to play a more significant role in the future to come. But let’s explore how they change the customer experience while assisting your agents and looking after the smooth running of your organization.

Drive Higher Sales

Chatbots optimize the response to user queries and reduces time to action, thereby reducing drop-offs. The click and point nature of mobile apps and web reduce down to users asking pinpoint questions of their needs thereby increasing the efficiency of information retrieval and quicker decisions.

Generates leads

Chatbots are well-known for lead generation and turning up the marketing scales. They engage visitors on your website and keep them hooked with various methods like asking them relevant questions, recommending policies, and providing details. Once the visitor shows interest, the chatbot can assign an agent to them for further decision making. They recognize hot leads and push them down the sales pipeline through proper customer engagement. 

Product Selection

Bots can also suggest policies and products based on a query-based path because it's important to capture customer needs.

Premium Payments

Customers can be sent alerts on renewals; policy lapses; notifications on due dates, and a lot more status information in an insurance sale or support cycle.

Personalized customer service 

Based on AI and Machine learning, chatbots are capable of reading and memorizing user data from all their conversations and hence, personalization comes into play! Insurance Chatbots interact with the customers and collect user data like their preferences, what kind of insurance they are looking for, and so on. An insurance chatbot can work as an artificial insurance agent that recommends appropriate insurance to clients based on their requirements and lifestyle habits. 

Help in finding the right insurance policy

Chatbots assist clients to choose the right insurance policy. They collect large amounts of data and are able to provide all the educational support required for the consumer to understand each product. With all the collected data, chatbots are capable of tailoring products according to each consumer's needs. After helping them decide on a product, they can further assist you in going ahead and purchasing it hassle-free. 

Manage claims and renewals 

Healthcare or employee-initiated policyholders are always eager with their claims. With the help of chatbots, they can check their coverages, how to file for a claim as well as track status. They also assist in renewal processes similarly. 

Services round-the-clock

The insurance sector has to be available 24/7 because critical moments can strike at any hour of the day! Hence, chatbots have been a great assistance tool for not just the prospects, but also the doctors round the clock! 

Read up this blog about chatbots in healthcare for a detailed explanation.

Consumers can interact with chatbots at any given time, make claims, renewals or even find details on the policy at any given time. Their easy-to-reach and 24-hour availability have made chatbots the best tool for automation in insurance sector.


According to the Global Trends Study 2017, insurance invests an average of $124 million per company in this alluring technology.
- VentureBeat report on Insurance Chatbots.

To sum it up

Chatbots in the insurance sector are able to assist people faster and make the agents’ tasks much easier. They contribute to an overall increase in the efficiency of an organization and also builds better customer relationships. Chatbots have a very promising present and future. With the growing sense of independence and self-service among the consumers these days, the old methods of insurance assistance will be long gone before chatbot replaces them. Engati chatbots are getting intelligent enough to offer a varied level of experience by computing patterns of information and implying them to make interactions more meaningful, relevant, and real-time.

It’s time to automate your business processes and drive past your competition!

Register with Engati today and build your very own Insurance Chatbot for free!

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