Insurance is one of the oldest, formalized activities in human history. First contracts were executed in the Hammurabi’s times, i.e. 4 thousand years ago. Such a long period of evolutions is one of the factors which contributes to how complicated taking out an insurance policy has become.
Nowadays, the insurance industry undergoes its technological transformation, following the footsteps of the banking sector, the digitalization of which has continued for a few decades now. InsurTech is the future- present-trend in the insurance sector. According to the data compiled by PwC, 90% of insurers are worried that startups will take over their clients. This concern is caused by the necessity to adapt to a new reality in which the emphasis is placed on the optimization of the service provision and customer care processes. Chatbots are a perfect fit for this reality. Gartner estimates that 85% of all customer relations will be automated by 2020. Thus, it is worth to ask a question, what benefits can insurance companies enjoy by implementing a chatbot in their CRM (Client Relationship Management) and sales systems?
A chatbot can:
- present the offer in an intelligible manner,
- conduct an interview regarding, among other things, the health condition and pension plans of the interlocutor,
- on the basis of the interview, suggest which policy is most suitable and explain why,
- go through the process of taking up an insurance policy step by step,
- present the benefits of taking out an insurance policy,
- explain all unclear terminology,
- answer all questions of the interlocutor in a comprehensive manner and clear up any doubts,
- provide information regarding other aspects of the policy, such as prolonging, assigning, and withdrawing from the policy,
- improve customer care in a significant manner,
- reduce customer-care costs,
- contribute to streamlining and optimization of internal processes,
- contribute to generating greater profits,
- enable a more in-depth data analysis.
As a rule, insurance brings to mind troubling events from our lives. We are not able to predict whether or not our house will burst into flames, or that we will not be beaten or robbed. Help may be needed regardless of the time of day, while getting through to the call center just adds to the stress. Thankfully, chatbots do not feel tired nor they have any problems with handling a few or a dozen interlocutors at once. The virtual assistant, connected to the data from the CRM system, can answer all question 24 hours a day, 7 days a week.
Questions asked by potential clients
Having a good grasp of the key features of a product or a service is one of the elements of the purchase decision-making process. A person deciding to take out an insurance policy has a lot of questions in mind. A questionnaire conducted by YouGov has shown that 72% of customers (adult US citizens) are of the opinion that the insurance industry uses a confusing language. The first difficulty encountered by the client is the selection of a proper kind of insurance. Moreover, legal writing is oftentimes used in insurance contracts, not to mention the technical terminology. That is why there are a lot of questions to be asked. During a conversation with a consultant, the client will receive some answers but not all of them. A chatbot can take just as much of its time as the client has, it will answer all the questions in depth and will explain all the unclear terminology in an intelligible manner. If a client asks a question that the chabot cannot answer, it will automatically redirect the call to a living and breathing consultant. When answering questions, the virtual consultant must also “remember” about approaching the client in the right way. During a conversation, the consumer should feel relaxed. That is why it’s a good idea to create a chatbot persona (character) tailored to a target group.
Streamlining of Processes
The process of taking out an insurance policy is complicated for the clients while it is mostly laborious for the insurers. They spend a lot of time doing the paperwork and recurring activities connected with claims management. This time could be better spent on talks or meetings with persons who—in their questionnaire conducted by the chatbot—have expressed the intent to take up an insurance policy. Optimization of the processes will also translate into cost reduction, even by 30% (IBM).
Matching a communication channel to the recipient is a particularly significant aspect of a sales strategy. Investing in new technology-driven solutions is a good way to reach the millennials. The analysis of the World Insurance Report 2018 prepared by Sogeti indicates that 40% of Gen Y customers are of the opinion that mobile apps are an important communication channel while 38% welcomes personalized insurance offers. After completing the client’s questionnaire, a chatbot is able to send an individual offer during the conversation. That way, insurance companies generate a new revenue stream.
When discussing bots, it is best not to forget about artificial intelligence and machine learning. These two terms are interconnected. Machine learning, as the name suggests, enables a chatbot to reach conclusions from the gained experience (data). In terms of the insurance industry, a virtual consultant can predict which claims will require human intervention on the basis of the previous submission of a similar nature. Data analysis is also immensely helpful with insurance fraud detection. A chatbot can detect anomalies and inform the employees.
In the insurance industry, technological advancement has been on the offensive for a few years, although, even at this early stage, it is evident that it’s just the beginning of a revolution. Chatbots can increase customer satisfaction levels and, at the same time, reduce costs, as well as limit the paperwork to the bare minimum. It is worth to consider the implementation of a virtual assistant in the CRM and sales systems today. The benefits speak for themselves.
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