Customer Engagement With Chatbots in Insurance Industry

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Customer Engagement With Chatbots in Insurance Industry

In this article, take a look at customer engagement with chatbots in the insurance industry.

· AI Zone ·
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As the world is moving towards a digital revolution in all business fields, the same pattern is visible in the insurance industry. Though the progress that insurance has made in the digital outlook has been quite steady compared to other finance domains, but it seems now is the time for insurance businesses to balance the technological disruption with their growth. This has been significantly prioritized by the intervention of insurance chatbots.

The competitiveness of the insurance industry is measured by the betterment of customer engagement. So when technology had begun to elevate the industry, one of the most important areas for its capability and energy was needed in the enhancement of customer experience.

This emphasized the boost of different new-gen technologies to pivot the impact of a customer-centric digital ecosystem. According to a study by Gartner, it is expected that AI chatbots will power 85 percent of customer-service interactions by 2020.

Insurance Chatbots – Covering the Extra Mile

If one talks about people’s needs, in today’s time they prefer small talk focused on the relevant issue over a phone conversation with the executive. It is a step for tech-savvy customers to engage with the automated chatbots, instead of wasting their time in queues of a phone call. Moreover, the generation today is happier saving the effort of calling someone if given a choice to text and resolve their respective issues.

Keeping in mind the smartness of an insurance chatbot, it can innovate the experience for the customers in ways humans cannot. A study conducted shows that 74 percent of consumers say they would be more satisfied by getting insurance advice generated by a computer rather than just talking to an executive.

Innovation — The Path Forward

There could be various ways in which a chatbot could be optimized according to the need and growth prospects involved. The basic algorithms strategize the chatbot to indulge in simple and yet smart responses to customers. The loophole lies in such chatbots that are systemized with a framework to be responsive only to the complex issues any customer would face like claim management but is not integrated to follow up when a customer has a basic query like which hospitals are covered in their insurance claims in an emergency.

So, the chatbots used in insurance software should be developed keeping in mind all the basic queries that a customer could need in a quick fashion and could also benefit from any time response feature for emergency situations. This will evolve the future of chatbots for the insurance industry.

Cost-Effective Solutions

Chatbots for insurance are cost-effective solutions to the insurance industry as there would be low or no requirement of customer executives for assistance. The low cost would come handy with more profits as the customers get better help along with round the clock service immediately.

In the competitive environment of insurance, this would benefit the insurance companies to map better growth prospects.

Virtual Assistance That Helps Better

When the machine humanizes solutions to the customers with digital speed, the customers remain better satisfied with the responses and hence, it leaves a good imprint of the name of the brand of the insurance company involved.

These positive results can be noted down by the findings of the study that points out a trend of the frequency of call volume, improved customer experience, and better first-call resolution for the insurance companies using efficient chatbot software. A recent ad-on is how the chatbots are now being optimized to give a natural touch in their language like for queries related to a travel insurance plan, the insurance chatbot is now customized to give a weather update of the planned travel destination. These little things end up making a huge difference in customer interaction.

A Chatbot That Understands

An important innovation by these chatbots is that it not only nourishes better customer engagement but also looks out for different ways to boost business. This is done by the procurement of smart solutions by chatbots that very well understands the needs of the customers with respect to their asked queries as well as the challenges they face and is capable of suggesting ways to improve customer experience by smart technology. This, in turn, paces the sale of the insurance company and hence pushes the business to grow.


The outlook of the digital world is to achieve higher results with lesser resources, and the transformation and adaptation of insurance chatbots is a huge step towards that goal. This goal is yet to be furnished in all its potential shortly as most of the insurance companies are strategizing their ways for this technical upheaval to take place. But once accomplished in its full power, it will change the landscape of insurance-based customer engagement with the machines becoming more humanized rather than humans following the tracks of machines this time.

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