How Can Insurance Companies Improve Their ROI with Chatbots
Every enterprise is leveraging chatbot development technology to interact with their consumers. And the insurance sector is one of those who can benefit the most in terms of efficiency, transparency, and quality; delivered to their customers.
There are a number of dynamics that are changing today’s industry, from an urge to reduce average handle time and cut support costs. These dynamics exist because the evolving customer wants to save their time and experience a convenient policy purchase or claim process. As a result, the artificial intelligence-driven companies in India are recognizing their needs.
According to multiple surveys, it is seen that millennial’s of the ages 24 to 34 prefer buying insurance policies online than those over 60. The benefit of speed and ease of use across all online channels attracts younger customers. This, in turn, puts additional pressure on the insurance firms to develop automated hassle-free customer experience.
Nearly 80% of the companies globally are adopting chatbots by 2020 or are to lose the majority of their customer base. This is the reason that several industries are actively exploring chatbot development companies to build their customized bots with capabilities and intelligence to improve their customer experience and ROI.
Insurance Chatbots have been in the industry for the past two years, all because of the immense potential they possess. But the adoption rate has been slower than other industries. The best chatbot developers are still exploring how things will turn up in the industry.
Presently, Chatbots are having a dual role in the insurance industry:
- Firstly, they are working as customer assistants with standard queries and menial tasks with detailed functionality and transparency. Thereby, increasing the ROI.
- Secondly, they even help actual agents, making their tasks easier, improving efficiency. Let’s read about it in detail!
Reduce Customer Bewilderment
Most of the customers say that insurance companies use blurry gibberish. Trying to understand the difference between life case insurance policy and death, can get very confusing if you are not familiar with the industry. A customer care chatbot, in this case, can help you reduce the potential confusion by putting complex terms into simpler language. Thus, making the customer understand the policy.
Chatbots availability 24/7
When someone requires an insurance claim, no one can control it. Home damages, road accidents, and dangerous occurrences can happen any time day or night. The customers are not left with any option but, to call during the business hours for filing their claim. Whereas, an AI chatbot who is available 24/7 can help you in filing the claim at any time. Additionally, the huge number of calls will not hinder the efficiency. Thus, making the customer wait for an hour or even more.
Chatbot simply tedious processes
A chatbot can help you in reducing red tape and useless processes in a claim settlement that the clients have hated since ages. A Lemonade report showed that for insurtech startup, Jim – a chatbot settled claims in 3 seconds. It must have been a very simple case. But, the waiting time for the insurance and the overall process time was reduced greatly, all thanks to the use of the Chatbot.
With every interaction, custom ERP/CRM chatbots continue to collect data about the customer. That means every time they exchange a piece of information the conversation becomes a bit more personal. It is seen the quicker the conversation, the higher is the rate of success. This way insurance bots can learn more about conversation and get better at solving a complex problem about the customer.
Insurance companies are using custom ERP/CRM bots at every level of the process. The bots can help both customers and employees navigate them through an ocean of data. They are capable of selling complex products, deconstructing, developing a good number of engagements, and solving customer query without manual assistance. AI development companies can build tailored chatbots for every level of the process.
Additionally, AI chatbots are a great investment because of 3 more reasons:
- To start with, they offer a messaging culture. They can instantly and easily be deployed in messaging apps like Facebook Messenger, WhatsApp, and a lot more.
- The second reason is that they reduce costs. As you will not have to spend capital on sourcing customer service executives.
- The third one is lead generation tracking. Sales professional complaint a lot about lack of ways to monitor the profitability of lead translating into a successful lead. As lead generation and attribution require a lot of documentation. Thus, a sales service bot can easily track, store, and simplify this data.
Insurers are very curious to adopt the Chatbot and AI technology in the coming years. And, they are still going to spend an average of $ 90 million dollars on Artificial Intelligence by the year 2020.
Business Insider estimates that building customers and agent chatbots can save the industry $ 12 billion dollars in labor costs. While there are many use cases for AI Technology in the insurance sector. But, driving high ROI is one of the uses of NLP and Chatbots for reducing the costs of training and monitoring workforce.
Want to start your Chatbot app development journey? Know how Signity Solutions can help you develop a low code and highly functional chatbot for your insurance agency. Hire our outsourcing team and get in touch with our experts!
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