4 Ways Conversational Artificial Intelligence Can Enhance Insurance Service and Distribution

For answering simple insurance questions, conversational AI excels in terms of usability and ease of use.

Contracts with insurance companies do not typically rank among customers’ favorite activities. This is because they often associate long hold times, automated menus, and being sent to various departments to have their questions answered.

What if there was a better way?

A type of artificial intelligence called conversational AI may be the answer.

What is conversational AI?

Conversational AI is a subset of artificial intelligence that enables machines to interpret and respond to natural human language.

When using automated systems or chatbots, you can use full sentences such as “Can you help me file a claim?” instead of just one sentence. or “I want to buy an insurance policy.” These exchanges flow easily and without consumer complaints.

Unlike previous technologies, conversational AI can typically understand variations in phrasing. When someone requests “buy insurance” or “buy policy”, the system recognizes both requests.

Many conversational AI applications inside and outside the insurance industry are chatbots. Some are standalone options, while others work within popular applications such as Facebook Messenger and WhatsApp.

However, conversational AI also extends to smart speaker skills that provide information to people in response to specific voice commands.

The insurance industry has historically not been an early adopter of conversational AI. But that is starting to change.

Here are some concrete ways the industry has deployed it.

1) Efficiency of quote comparison and sales

Identifying the provider with the best coverage at the most reasonable price has become increasingly easier. This is largely due to online quote comparison tools. Potential customers can enter some basic details and then get information about the most suitable options.

Confused.com is a quote comparison website based in the UK. Equipped with an Amazon Alexa smart speaker skill, you can find affordable insurance quotes with just one voice command.

Testing has shown that users may have Quote sent by email or read aloud to them by device.

However, before you put your skills to the test, you should remember a few things. First, you need a Confused.com account for the quote comparison to work. You can only retrieve information about vehicles currently associated with your website account, not new accounts.

Additionally, some users may view the need to use a separate website or app to purchase policies as a drawback.

Doing it by voice might get you the quote a little faster. However, this particular solution requires you to use other options to proceed with your insurance purchase.

2) Provide an ongoing communication thread

If someone answers the phone to initiate a conversation with an insurance representative, it is usually not possible to resume communication with the same individual at a later time.

Many conversational AI applications make it possible, especially when working through widely used messaging platforms such as WhatsApp. Asynchronous communication occurs between parties that do not exist at the same time.

This is an important feature. Especially since AI and human agents may not be able to resolve all insurance queries immediately or on the first try. Imagine someone interacting with a chatbot to submit an insurance claim, but had to interrupt the exchange to care for a sick child.

According to statistics 20% of messages are reopened Within 72 hours. Some conversational AI solutions can analyze the entire transcript of an exchange. Then determine if someone’s reply contains a new question or a continuation of a previous conversation.

Headquartered in Mumbai, India, SBI Insurance Recently launched Conversational AI The WhatsApp-based platform allows users to purchase insurance, renew existing policies, review relevant insurance documents, and more. Everything happens directly on the platform, making it easy to look back and resume conversations later.

3) Giving people more confidence about post-COVID travel

The COVID-19 pandemic has disrupted travel like never before. Fortunately, vaccines are now widely available in many parts of the world, and doctors know more about how to treat the virus.

So a diagnosis of COVID-19 is usually not as dire as it used to be. These are the main reasons why many people are ready to plan and execute their leisure and business trips.

Risks still exist, but individuals are usually better able to face them if they have relevant information.

Southern Cross Travel Insurance, which serves the New Zealand market, responded by creating a chatbot in anticipation of the return to travel in the post-COVID world.

A chatbot called Scout is designed after a kea, a type of parrot found in parts of New Zealand.Insurance executives felt it was particularly so Providing resources to customers is important They traveled through different time zones and regions of the world.

People can chat with Scout 24/7. Chatbots also allow users to participate in his live chat with his team for customer service and complaints during business hours.

A company representative said the chatbot could also free up human representatives to handle more complex queries. They estimate that Scout will eventually tackle at least 20% of the questions, and the overall percentage increases as the algorithm improves through use.

4) Provide relevant information in an accessible format

You may be asked relatively simple questions about insurance. They may want to know if their home insurance covers a ruptured pipe or if their current car insurance policy allows them to drive in another country.

Perhaps these customers would like to add a designated driver or know the billing related procedures.

Conversational AI usually excels at these kinds of queries.

Some companies are helping with smart speaker skills. Many customers find it ideal, especially when they want to get relevant information efficiently.

We don’t always have time to sit in front of our computer or scroll through help documents on our smartphones. Similarly, many people would rather avoid making a phone call to obtain such seemingly simple information.

Many homes have smart speakers in places where people spend the most time, such as the living room. This makes it easy to say commands with minimal or no interruption.

They get the information they need rather than guessing and guessing.

Conversational AI helps the insurance industry

These are just some of the many ways conversational AI is being applied in the insurance industry.

As more companies test the possibilities, other insurers may follow suit. &

Shannon L. Flynn is a business technology and cybersecurity writer based in Philadelphia, Pennsylvania.she can be reached at [email protected]

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