New England Insurance Agent Blog

The insurance chatbots are coming
/ Categories: Trends

The insurance chatbots are coming

Myth: No one wants to talk to a machine. Reality: Millions of people are happily engaging with iPhone’s Siri, Amazon's Alexa and Google's Assistant. Every day, people are having their questions answered via customer service chatbots, both by voice and by text. Artifical Intelligence (AI) is powering these agents, which grow more sophisticated by the day. Gartner predicts that by 2020, AI will handle 85% of all customer service interactions.

In AI and Chatbots Are Transforming The Customer Experience, Shep Hyken talks about some of the recent improvements and ways chatbots are being used in customer service functions. He cites several distinct benefits. One is that the chatbot never sleeps. Most agencies are staffed on some variation of the 9 to 5 workday, leaving more than 100 to 120 hours a week to the mercy of the answering machine Chatbots provide a wide-awake alternative. They also eliminate the frustration of being put on hold, replacing elevator music with a more personalized experience that can address many routine requests. And because chatbots are data driven and learn, they can deliver personalized interactions and work to build brand loyalty.

What can chatbots do for insurers? In VentureBeat's article How chatbots can settle an insurance claim in 3 seconds, Alex Sun talks about many ways that chatbots are currently being used in insurance to improve the customer experience. Like Alexa and Siri, the chatbots have names to give them a personality that reflects the brand. Some of the things they are currently being used for:

  • answer basic policy and billing questions
  • sell simple home and auto policies
  • resolve claims.

In A Match Made in Heaven—Chatbots and Insurance Services, Andrii Deglar talks about chatbot development in the insurance sector, from Facebook's Messenger to an array of chatbot startups. He offers this advice:

The take-home message for the insurtech industry is that chatbots represent a growing opportunity to reach a wide market segment but the focus must remain on mobile, and insurance chatbots must be willing to meet users on their home turf – Messenger, Skype or WhatsApp – while adapting to the increasing use of voice activated interactions.

Related chatbot reading

5 Reasons Chatbots Will Disrupt the Insurance Industry

How Chatbots Are About To Change Communication

11 Amazing Facts You Might Not Know About Chatbots

There is a "Watson" in your insurance agency’s future

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