Axcel Beck

The enormous benefits of using Conversational AI in the insurance industry are already becoming apparent. Leading insurance companies have transformed their customer service by automating the end-to-end resolution of over 80% of incoming inquiries using AI-powered Intelligent Virtual Assistants (IVA) while slashing operating expenses dramatically. Identifying consumers’ motives for initiating contact has become critical analytics use case for practically any contact-center business, with customers engaging via SMS, websites, chats, and social media. Insurers may also use AI Assistants to increase sales by engaging potential consumers across several digital touchpoints.

Customer Service Challenges:

When it comes to understanding the direct voice of the client, organizations have typically faced three major problems.

  1. Manual consumer engagement via voice calls accounts for fewer than 2% of all interactions, resulting in incomplete and unprocessed data.
  2. Firms that stick to traditional ways have limitations on two fronts: efficiency and production. Manual analytics become time intensive and inaccurate when the volume of data is considerable, resulting in less feedback-based improvement.
  3. Hiring a big crew to handle inbound queries and customer support is an additional and significant cost for any company.
  4. Natural-language processing skills, along with industry expertise, are helping organizations enhance quality, efficiency, and customer experience.

    This is where conversational AI plays a crucial role.

    According to a survey, 73% of insurance executives support using technologies such as predictive analysis and conversational AI to provide an omnichannel experience and speed up the process of responding to and resolving consumer inquiries. 74%, on the other hand, prefer computer-generated insurance recommendations.

    Before we move to the benefits, let’s look at the role conversational AI plays in this industry.

    Role of Conversational AI in the insurance industry

    1.Personal Digital Assistants

    An insurance provider’s Intelligent Virtual Assistant (IVA) can enable its clients to get on-demand access to relevant, customized goods and act as their personal assistants.

    2.Voice assistants

    Insurance consumers may conduct a wide range of conversations using AI-based conversational IVRs, including policy recommendations, claim settlements, and even the purchase of additional policies, all without having to speak with a human agent.

    Benefits of Conversational AI in the Insurance Industry

    1.Automated Claims Management

    The claim process can be automated with conversational AI, making it faster and more efficient. Conversational IVRs and AI assistants can instantaneously retrieve a customer’s information from the corporate database, allowing them to file and get claims more quickly and seamlessly than if they had to wait for a support professional to respond.

    2.Generating Insurance Quotes

    Conversational AI-powered digital assistants can also produce health insurance quotations and compute premiums without the need for human interaction. When a customer requests a quote for a product, virtual assistants may gather all of the necessary data to compute the risk factor and then provide them with a quote in real-time.

    3.Lead Profiling and Conversion

    Virtual agents may split customers into several groups based on their inputs, such as age, risk, income group, employment stability, and so on. The information gathered during the process is useful for lead profiling, which aids sales teams in increasing conversion rates. If a lead’s questions are answered within 5 minutes, it’s 400% more likely to be converted. Hence, prevents the loss of potential customers.

    4.Creating a Comprehensive Database

    Businesses in the insurance sector, like any other industry vertical, require a large database of contact information — emails, phone numbers, and social media handles – in order to market their services to their target audience. This information may be collected by virtual agents throughout their interactions with any user. This contact information might be a game-changer when it comes to increasing the reach of an insurance company’s marketing efforts.

    5.Assistance with Policy Research

    Consumers may use conversational AI insurance solutions to help them explore life insurance policies. Most customers fail to understand the terms of a policy they might be interested in due to the complexity of insurance products. With the use of conversation AI technologies, this may be solved by supporting interactive Q&A sessions between users and virtual agents.

    6.Better Fraud Detection and Prevention

    The insurance business faces nearly $40 billion in fraud each year, which is one of its biggest challenges. Your organization can prevent fraud to a large amount and protect customers from being duped by disguised transactions by using a conversational AI chatbot.

    7.Stronger Brand Image

    Conversational AI may help develop a strong brand image and corporate personality by answering client questions, concerns, and automating a variety of operational tasks, from calculating premiums to resolving claims.

    8.Operational Efficiency

    Intuitive and intelligent virtual agents can handle queries and conversations that are generic. Wherever necessary, live agents may smoothly intervene and take over. This aids in the reduction of call durations as well as operating expenses, resulting in increased efficiency throughout the process.

    9.Reduced Costs

    By optimizing the process of routing calls to the resources in the shortest time frame possible, you can cut back on costs and build upon your bottom line. Conversational AI is at the core of automating this smooth transition while also providing consumers with contextual and relevant information. By switching from human to virtual agents, the cost of each inquiry may reduce from $15 to $200 to just $1.

    10.Sustainable Self-service

    In the insurance industry, Conversational AI can make end-to-end self-service a reality, proving to be a valuable tool in the relationship-building process. AI-powered virtual assistants give up a whole new universe of possibilities for businesses to provide clients with a self-service model that is more customized and faster.

    11.Better Customer Insights

    For an insurance company to be able to provide suitable products, they must be aware of their customers’ needs. Conversation IVR systems may collect data from clients during conversations and generate analytics with visuals. This allows you to adjust your products and services in response to shifting client expectations and requests.


    Insurance businesses may also use conversational AI to scale up operations and expand into new markets. Virtual assistants may be used to develop a multilingual customer service system that caters to people from all over the world.

    Road ahead for Conversational AI in the Insurance Industry?

    Conversational AI is without a doubt one of the most important things that have aided in the improvement of the insurance sector’s service quality. With conversational AI gaining traction in the insurance industry, the process of purchasing insurance, filing claims, or even dealing with an insurer will become more efficient than before. Axcel Beck Consulting is a leading global professional Insurance Technology consulting business that helps insurance companies speed their digital transformation by improving processes. Our integrated conversational AI can communicate with consumers via chatbots and speech bots to improve their experience by determining the consumer’s intent and providing appropriate information. It intelligently analyses and converses with customers, captures their replies, and handles end-to-end data without the need for human intervention, assuring higher accuracy and efficiency

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