Chatbot vs human which one is better? RiskHeads Insurance Magazine

chatbots in insurance

During this period of excitement about the potential of technology to save the planet and deliver world peace, Business Insider confidently predicted that 80% of businesses would be operating chatbots by 2022. In secondary research collated by INTNT.AI, the top 148 insurance companies in the UK listed by Insurance Business Mag were surveyed to check for the presence of a chatbot. Of these, only 10 companies were shown to make use of AI to help with their customer service requests. Interestingly, of those that didn’t have a chatbot, 7.81% of them had a live-chat-only function, and 24.2% of them had an online contact form.

It frees you up to deal with more important queries rather than block up the call lines with questions like ‘what’s your email address’, and ‘would your pet insurance product cover my goldfish’. Use of chat bots by companies comes as the insurance industry is rushing to start using technology to better attract, retain, and price customers. Contrary to popular opinion, chatbots, in general, have evolved over time to be able to handle complex procedures such as claims filing, goal setting, etc. in a jiffy. One of the catalysts of this change can be attributed to the fact that these smart bots have gone from being reactive to proactive – in delivery, and in style.

What are Chat Bots?

ProNavigator is seeing an average form completion rate of 78% with its system, meaning some brokers are generating almost 30% more leads by embedding a chatbot on their website. Additionally, it assists agents in streamlining processes and helps you learn about the quality of your leads, propelling your insurance company toward success. This conversational AI platform lets you transcribe recorded conversations and draw insights to identify trends to significantly enhance your customer support and overall customer experience. Additionally, an insurer using AI technology can improve the customer support provided by a human agent. This also includes using an AI bot to streamline customer care experiences, automation of claims processing, end-to-end resolution of routine queries, etc. Historic policy documents are also being used to train AI models to answer questions customers may have about their policies in easy to understand language.

  • With conversational AI and machine learning, customers who wish to purchase an insurance policy, renew an insurance policy, issue a claim, or pay a premium can easily do so.
  • Chatbots can simplify comprehension by providing easy-to-understand responses.
  • Khan additionally emphasised that the real impact of ChatGPT has been in the way it has provided more industry-wide optimism in the ability of AI generally to help insurers.
  • Chatbots or virtual assistants can help doctors to instantly provide answers on medication, dosages, standards, and more.

It’s now more essential than ever to include digital within your communication and engagement strategy. Our insurance organisations receive support from people who understand the challenges. Our solutions become a central hub for inter-connecting disparate systems.

Current Use of AI Chatbots in the Insurance Industry

Let’s see how AI is transforming most of the insurance subprocesses and providing customers a different experience altogether. is also the company’s first entry to connect directly with customers. For the last five years, the company has been focused on building AI Chatbots for many financial institutions like Bangkok Bank, CIMB and Schroders, using its proprietary Natural Language Processing (NLP) technologies. He specialises in building sales growth for Väre through innovative digital channels. Reach out to Niko for questions about Johan Helbotti, Väre’s friendly little chatbot, and CX trainee. They want Johan Helbotti to greet their visitors in the same unique way any of his human colleagues would.

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With many insurance providers exploring digital transformation and investing in technology like insurance chatbots, live chat, and more, artificial intelligence, specifically conversational AI in insurance, could be the answer. From simple queries about opening times or office locations, through to rent queries, reporting anti-social behaviour, fly-tipping or making complaints; chatbots are transforming how housing associations deliver services to their residents. Chatbots integrate with contact centre systems, CRM and housing management systems to provide integrated answers to all customer queries. We all know that chatbots have their issues, but what happens when the assistant is built specifically for insurance needs, rather than to handle a broad range of tasks – it becomes more efficient and accurate. SPIXII’s bot aims to deliver a great personal customer service, enhance customer loyalty, and most importantly, replace form filling. The chatbot is regulated by the Financial Conduct Authority (FCA), is fully compliant, and can speak all existing languages.

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Malaysian insurer Tune Protect is using ChatGPT-powered chatbots to engage with customers in the claims process. A chatbot could provide correct answers, directly reply or even escalate to the requested person in case bot fails to answer the question. Chatbots can take up the redundant task of educating the customers on various process flows, policy comparison, and policy suggestion based on a rich database.. Additionally, Capacity, an AI-powered support automation platform, is helping insurers improve efficiency and customer satisfaction.

Why is AI important in the insurance industry?

AI can address potential bias in underwriting by identifying and eliminating any potential decision-making disparities due to race, gender, age, or ethnicity, and that's what can make for fairer pricing. “Another positive impact AI will have on premiums is its ability to detect fraud and identify high-risk customers.

Over the coming years, AI will empower financial companies to create increasingly personalised services for their customers. With a better understanding of their customers, they’ll be able to deliver more and more flexible products, built around their customer. AI algorithms can also analyse customer data to identify patterns in behaviour, preferences, and life events. This allows insurers to tailor insurance products and pricing to individual customers, fostering greater customer satisfaction and loyalty. Insurance fraud is a pervasive issue that costs the industry billions of pounds each year. AI plays a crucial role in combatting fraud by detecting suspicious patterns and anomalies in data.

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 could include recommendations on how to mitigate specific risks or suggestions for improving safety and security. By sharing insights and guidance, insurers could help customers protect themselves and their assets better. This type of proactive risk management advice is something that would benefit both the customer and the insurance company. A chatbot is there 24/7 to automate FAQs and administrative tasks from customers about insurance coverage, premiums, documentation, and filing claims. The chatbot can also take up customer onboarding, billing, and policy renewals.

We are only really scratching the surface when we consider chatbots and their use within insurance customer service. AI which uses deep learning models can offer far more complex solutions to everyday insurance problems, from processing claims and analysing risk, to marketing new insurance products and even arranging claims. As an industry which handles vast amounts of data every minute, the world of insurance is crying out for new technologies to ensure better outcomes for insurance customers.

Frequently Asked Questions

The lower cost of centralized and automated customer service for insurance carriers only yields savings if it doesn’t detract from the customer experience. However, with a shift away from in-office care and towards call-centre customer service, insurance chatbots in insurance policy and claims care have come to feel less intimate and consumers are feeling the sting of depersonalization. Changes in behaviour and lifestyle can be used to provide relevant insurance product offers or targeted messages about policies.

chatbots in insurance

AI algorithms can efficiently process and analyse this data, extracting valuable insights to enhance risk assessment models. Through machine learning techniques, AI algorithms can identify patterns and correlations in data that human analysts might overlook. This enables insurers to better predict and price risks, resulting in more accurate underwriting decisions. By leveraging AI’s capabilities, insurers can refine their risk assessment processes, reduce fraudulent claims, and offer more personalized insurance products to their customers.


As a result, insurers are fielding an increase in calls about coverage, policies and claims. At the same time, many insurance companies have also had to make their entire operations remote in a matter of days. Some insurance companies have taken steps to incorporate AI (artificial intelligence) to make their business processes run more smoothly whilst engaging customers, increasing leads and generating sales. Using clever chatbots, a forward-thinking interactive technology, has certainly allowed many insurance companies to provide exceptional customer service.

Paired with the company’s internal systems, bots can easily identify customers and fetch answers based on their account information. Just like chatbot Meli by PFI Mega Life Insurance, which uses an OTP-based validation protocol to verify user ID and help them download necessary documents. When chatbots struggle to find the information customers need, they can always transfer the query to a human agent. Several insurance companies are already leveraging AI chatbots to streamline operations and improve customer service. For instance, Lemonade uses chatbots to handle claims, leading to faster response times. Similarly, Allstate uses chatbots for customer service and support, while Zurich leverages AI for claims processing and settlement.

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). Some exampes of the ways that converse360’s Assist-Me Customer Service Automation Platform enables Insurers to streamline processes and deliver exceptional customer service to customers. With traditional quoting engines, less than 50% of users (sometimes as low as 10%) complete the flow and submit their email, according to Joseph.

The FCA have started to take a keen interest in the use of AI for financial businesses. Monitoring the chat bot’s customer management is critical to ensure businesses stay within regulations. chatbots in insurance AI collects data, yet information needs to be consented on the part of the customer – firms need to show how they have acted in the customer’s best interest upon using their data.

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Can AI replace insurance agents?

AI Will NOT Replace Independent Insurance Agents

The short answer is that artificial intelligence is highly unlikely to replace independent insurance agencies.