Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?
Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

Automated Conversation Platform or chatbot is the key to immediate customer response that is crisp, to the point, and informative. These are efficient tools that are available 24/7 for both current and potential consumers.

The global mobile-user data suggests that customers want almost everything on their phone and they prefer self-service.

In such a scenario, the future of consumer-oriented industries will be driven by AI-enabled chatbot. Industries such as insurance and banking have to deal with a huge number of consumers alongside extensive paperwork.

Effective Customer Engagement through Chatbot

A chatbot has the ability to engage customers through various platforms such as a desktop or smartphone. Users can ask for the information in their preferred language and they can get the information without any delays or errors. This can help a business acquire more customers and retain the existing ones.

Here is an outlook on how insurance companies can enhance customer engagement through chatbots.

  • Personalization 

Insurance businesses have to carefully pitch their products in a customized way. In this business, there is no one size fits all. Sales managers have to collect information about their potential customers and then they can offer customized products.

AI chatbots can collect wealth related information from the customers and transfer it to the key decision-makers who then can use it to determine whether to make changes in their product or not. In addition, chatbot for insurance companies can facilitate faster communication which is also a key factor for a higher rate of success.

AI enabled chatbots can be a great help in this scenario as they can learn new information and inform customers quickly. This also can also be considered a reputation building factor as the customers tend to prefer service providers who provide precise information and personalized products.

  • Profitability 

The profitability of an insurance business depends on its customers’ trust, loyalty, and reputation. A business that is always available for any kind of assistance to its customers is preferred over others as in the insurance sector, trust is everything.

Here, AI chatbot for insurance companies can be a great investment as they can significantly improve the reach of a business. Most chatbots follow messaging formats and they can be easily integrated to all the messaging platforms such as Whatsapp, Facebook Messenger, Hike, etc. As a result, they have the potential to connect to millions of potential customers that ultimately increase the chances of sales.

Secondly, chatbots can reduce costs such as those involved in customer support. A chatbot can be integrated into Customer Relationship Management (CRM) of an insurance business from which they can derive customer information and talk to the customers accordingly.

They can also resolve general customer issues such as providing information about claim handling, transferring issues to relevant departments, or managing serious issues by connecting the chat to an expert.

All of these processes can be accomplished with zero or minimal human intervention which saves employees time and the cost for a separate customer support department.

Lastly, chatbot for insurance companies can offer amazing customer retention by offering 24/7 assistance to the customers. Consumers prefer a service provider who offers round the clock informational assistance because there are emergency situations where customers may need the claim or information about the claim urgently. In such a scenario, a 24/7 AI chatbot can be quite helpful and a trust-building factor.

  • Functionality 

Finance companies that have already integrated technology to their products are called Fintech and the majority of Fintech companies use AI enabled chatbots across their organizational structure. This is to simplify the flow of information and offer seamless connectivity.

AI chatbot can also be used internally to improve information sharing and the flow of data for both the employees and managers. They can mine, collect and share data without any fuss as they do not have to manually search the databases and derive information.

Chatbots can help in selling complex products and solving customer queries without manual intervention to a large extent. Even in India, many insurance companies have started using chatbots for claim registration, checking the policy status and more. However, they are still not being tested in the sales and distribution aspects of a business.

  • Improved Customer Service 

In many countries, customers do not prefer to talk to customer support/call centers as they are wary of going through a frustrating experience. Many a time, call center executives to consume a lot of time in providing the information, transferring the call to an expert and solving their issues.

Also, the issue of call waiting is also there. Therefore, AI chatbots for insurance companies can be of great help in this scenario as they can offer 24/7 assistance without any delays, interruptions or mistakes. Modern chatbots do not require customers to enter each and every detail as only their registered phone number or policy ID would suffice.

Bots can fetch information directly from the databases and share it with the customers. This improves the level of customer service and presents an effective customer engagement where the customer is quickly provided with the relevant information ensuring customer satisfaction alongside.

  • Easy Claim Handling 

Registering the claim and its processing can be quite fussy. Companies usually take a lot of time in filing paperwork and rendering claims. Here, chatbots can be a life-saver for both the customers and the company. Digitization has significantly reduced the paperwork in many industries but people still need to manually enter the data into the systems multiple times.

Chatbots can extract that data with ease and they can also update the changes on their own. A chatbot can help customers by informing them about the claim handling process in detail and customers would not be left in the dark about the stage in which their claim is.

In addition, customers also do not have to answer the same lengthy questions again and again. They only have to respond to bite-sized queries and they get the information without any troubles or delays.

Due to the rapid technological developments such as Natural Language Processing (NLP) and smarter AI, future chatbots for insurance may completely replace humans. However, for now, they can offer improved productivity and customer retention along with increased profitability.

Want an insurance automation app that is tailor-made for your business needs? Connect with our team at enterprise@affle.com for a quick demo.

Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

8 Comments

  1. Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

    Hello There, The blog is really informative. After reading this the question that struck in my mind is how chatbot can be used by insurance brokers and customers?

    • Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

      Chatbot is helpful in many ways. It helps insurance brokers as well as customers.

      FOR INSURANCE BROKERS: It helps in automating assistance, customer on-boarding and managing fraud claims.

      FOR CUSTOMERS: It provides access to insurance automation and another feature which is very helpful is anytime access to required info.

  2. Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

    I really liked your article, this is a comprehensive and helpful list. Chatbot plays a very important role in every sector and it has a huge impact in Insurance sector. It helps in engaging customers and can easily extract the data with ease and can offer improved productivity and customer retention along with increased profitability. Thank you for sharing insights.

  3. Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

    The article is interesting but how chatbot helps in improving customer services and enhancing trust and loyalty?

    • Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

      Chatbot helps in improving customer services as it offers various perks such as personalisation, transparency, claim handling, 24*7 assistance to the customers without any delays, interruptions and mistakes.

  4. Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

    Hey Shubham, Great Job here. I read a lot of blog posts and this one is really interesting as it is the future of the insurance industry. Due to the rapid technological developments such as Natural Language Processing (NLP) and smarter AI, future chatbots may completely replace humans in the insurance industry and can offer improved productivity and customer retention along with increased profitability.

  5. Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

    What a fabulous post. This is so chock full of relevant information. I can’t wait to dig deep and start utilizing the information that you have shared. Thanks for sharing it.

  6. Chatbot, How Insurance Companies can Enhance Customer Engagement through a Chatbot?

    Great suggestions. Thank you! Many of us didn’t know about AI and use of chatbots. This article is really helpful.

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