6 Practical Conversational AI Use Cases in Insurance

AI systems will dramatically lower the cost of processing all that data, and that will improve the profitability of all the existing players. But it will also make it a lot easier for start-ups to break into the industry. Providing live chat software over 16 years for various different industries, including 25% of UK Universities with nearly 40% of our customer base comprising of Public Services, Charities and Insurance companies, we are specialists in these areas. When only a human response will do, your bot will hand off to the appropriate available agent, transferring the chat just like a human colleague, with a full transcript of the conversation visible. Your bot can even be used to triage enquiries, performing more complex routing by asking preliminary questions to establish the correct team. When the majority of visitor questions are repetitive and easy to answer, automating your solution makes perfect sense.

Ignite CEO Toby MacLachlan believes that, within a few years, the bot will answer more than 90% of customer calls. Customer service calls are the most obvious use for AI systems, able to quickly and vastly direct multiple customers to business departments all at once. Generative AI can automate status updates to customers across all stages of the claims process, leaving the customer informed and confident that their claim is being handled efficiently. This can also reduce the manual burden for claims handlers and free up their time to continue processing the claim.

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Using both a menu-based approach and Natural Language Processing (NLP), the Insurance Chatbot offers visitors the option of typing or voicing their enquiry, providing them with answers within seconds. Our intelligent ‘auto-review’ feature means that the Chatbot always utilises the most up-to-date information and links on your website. In finance, huge amounts of money has to be spent on dealing with customers, usually through call centres that are expensive and hard to run. If AI can replace those, just as with data crunching, it will lower costs significantly, while also making it far easier for new rivals to emerge. In essence, with machine learning a computer is able to use reason to learn from huge datasets, much beyond the capacity of even the most intelligent human being. Through this, machines may be able to make pinpoint accurate decisions and take action according to its decisions about a particular dataset.

A chatbot acts like another member of your team, taking chats and answering the visitor quickly and easily 24/7, answering, advising and signposting where required. Registered with FSQS, Click4Assistance https://www.metadialog.com/ make procurement straightforward and provide the flexibility required. It’s now more essential than ever to include digital within your communication and engagement strategy.

Hong Kong Regulatory Insurance Update April 2023

And until NLP can operate at the same level of accuracy as a human being, it’s difficult to incorporate it within certain use cases. The versatility of online chat, be it live chat or chatbot, is that people can have a laptop set up on the kitchen table, office or even coffee shop rather than having to squirrel themselves away on the phone. It is this kind of versatility that will likely see their use increase as a result of the challenges of handling the pandemic.

Ultimately ML can never completely replace a human, yet its ability to learn and replicate human behaviour has proved advantageous for many companies across a variety of industries. EY reports that it believes most property and casualty insurers will prioritise claims management when adopting generative AI. Do not deal with unlicensed persons offering insurance and if they are interested in buying insurance in Hong Kong, they should do so from a licensed insurance intermediary. Do not participate in any sales activities of Hong Kong life insurance in the Mainland as this could have an adverse impact on effectiveness of their insurance policy. In its current form, issues over the accuracy of its content are likely to prevent it from being used as a meaningful tool for underwriters or in the drafting of policy wordings.

Hong Kong Regulatory Insurance Update July 2023

Now that you know how conversational AI technology is transforming the insurance sector, let us show you why iovox Insights is the only artificial intelligence solution for your business needs. Give your web visitors 24 hour customer service, allowing them to request quotes, submit claims and get general information all within one simple platform (and with no agent assistance). The business claimed the bot is the “first ever chatbot for UK business insurance”. AI software will make the markets for most major financial products far more open, and it will make it a lot easier for new companies to challenge well established players. Smaller companies and start-ups will be able to match the data of the largest companies. And in the first instance, intelligent computers will mainly be used by the established giants of the industry to lower their costs.

Zara collects the information online and passes this onto the human handler, so they have everything they need to start the call and make the process much faster. In fact, Zurich can now process claims within three working hours compared to the previous 24 hours. We have also seen an improvement in the overall quality of claims that come through during that out-of-hours time period. Across weekday evenings, we are seeing a 20% improvement on overall claims conversion rates and at weekends a 6% improvement since using a chatbot. As the industry keeps on changing, technology is becoming increasingly important to enable carriers to compete in this new environment. It is apparent that this space is evolving in a way that will see new technologies having a tremendous impact on how insurers interact with their customers.

Equally important is retaining the personal touch and having the ability to hand-off to a live agent when required, based on predefined rules and scenarios ensures that your customers always feel listened to and valued. For personal lines insurance, a simple example of how to streamline this process is using online chatbots through which consumers can learn about products and get covered. These have existed for a few years, but integrating generative AI can make them more capable at answering difficult questions with human-like responses. Chatbots are also being used for commercial insurance, with cyber insurance MGA Cowbell now providing a GPT-powered chatbot that helps brokers and policyholders receive guidance on risk assessment, cybersecurity and the claims process.

These can then be acted on and addressed by the business to change the outcome for calls. For many large corporations, these benefits, in their opinion, outweigh the potential negative of poor customer service. 63% of insurance executives are investing in AI and machine learning in the UK, compared to just 50% of their US counterparts. Salesforce has launched a tool to enable companies (such as insurers) to use their own AI models within Salesforce applications and train models on their proprietary data. Canadian broker Mitch Insurance is using ChatGPT to help create concise overviews of complex coverages and pitch products to clients. The Auto Club Group, a US automobile association that sells insurance, will use generative AI to allow its agents to retrieve information about insurance policies.

Empowering Insurance Underwriting: Unleashing AI’s Potential

Prospective customers might not have the chance to search for information on a website which is where chatbots come in handy. They are programmed to provide answers to frequently asked questions on an around-the-clock basis making them an accessible central service. This chatbot doubles up as a Financial Guide to assist users in choosing the best plans and solutions for them. The bot is available 24×7 for users and is capable of addressing routine FAQs in addition to answering queries related to policy details, requests for premium receipts, fund value, payment history, annual premium statement, among other things. Insurance providers can choose Virtual Assistants to automate specific processes and leave live advisors for other tasks or enquiries. AI assistants can also augment the capabilities of insurance agents when it comes to upselling and cross-selling services and policies.

This company using insurtech provides their service both as a mobile application and on desktop. As regulated businesses, the opportunities offered by chatbots to control costs while improving the customer experience makes them invaluable to the utilities sector. From dealing with spikes in service enquiries triggered by extreme weather to continuing to provide services throughout the pandemic, utilities customers have been some of the most eager adopters of AI technology. Chatbots can, in fact, transform and uplift the customer experience and claims process.

An online study by McKinsey and Company asked 2,395 participants from a variety of industries about their usage of AI. It was found that 50% of respondents state that their company has incorporated AI into at least one business function. It has been embraced by an increasing number of organisations, chatbot insurance claims including those within the insurance industry. Artificial intelligence (AI) is the technology used by machines to mimic the human mind and how it processes information. It effectively programmes machines to think and behave like humans when analysing data and completing tasks.

Thus, Tokio Marine Insurance Company launched Tokio the chatbot to help customers get quotes over WhatsApp, Messenger and the web 24/7 and without human agents’ involvement. Conversational AI enables insurance companies to recommend the best policies to customers, answer customer queries, simplify the claims process, and provide 24/7 assistance with minimal human interaction. This shows that, for customers, chatbots can provide a useful initial point of contact with the company outside of intensive customer service channels that can help start a conversational customer journey and thus leading to more sales. This itself was found during a study by Juniper Research who estimate chatbots will drive $112 billion worth of eCommerce sales by 2023.

Related to “Representation of Information” e.g. complaints relating to the presentation of an insurance product’s features, policy terms and conditions, premium payment terms or returns on investment, dividend or bonus shown on benefit illustrations etc. A striking HK$9.6 billion (2686.4% increase), representing 20.5% of individual businesses. The IA has released provisional statistics for Hong Kong’s insurance industry for Q showing a decrease in the total gross premiums by 7% to $147.2 billion over the corresponding period in 2022.

• They may inquire about premium deadlines, renewals and company processes, and expect timely assistance.
• It can also be further trained by allowing access to a company’s knowledge base, policies, services, and customer conversations.
• The application of AI stretches far and wide, infusing a breath of fresh air into the traditional setup of the insurance industry.
• For self-service to work effectively, it must replicate what a great Customer Service agent would do to provide a seamless user experience.
• What marks ChatGPT out from most generative AI tools that have come before it is, it’s remarkably good.
• Cultural sensitivity may also need to be considered, as chat bots often cannot discern between sarcasm, jokes or bluntness.