Artificial Intelligence (AI) is making an impact across multiple industries, including insurance. In fact, insurance is one sector where this innovative technology is becoming especially significant, particularly given the impact it can have on productivity and performance. One study even found that the insurance sector outspends 12 other industries when it comes to investment in AI. But what are chat bots and how are they going to usher in industry change?
What is a chat bot?
It’s an AI that has been designed to carry out a conversation, usually with a human user, either on the phone or via text. A chat bot is a genuine example of interaction between a human and a machine. Most are designed to simulate what the average person would consider to be a convincing conversation, which is why they have particular relevance for any aspect of business that involves customer service.
When interacting with a chat bot, customers feel like they are having an authentic and useful experience, which can help to support brand perception as well as perceived service standards. The other big advantage of an AI chat bot is that there is an element of machine learning – the AI can improve as it goes as a result of the AI component, continually getting better in terms of streamlining performance and identifying and meeting customer need.
Why are chat bots important?
The use of chat bots can create a number of key advantages for businesses, especially where resources are under pressure. These include:
- Improving customer engagement by providing timely and accurate responses on behalf of the business
- Increasing operational efficiency by offering an alternative to a fully staffed human service team
- Enabling efficient information delivery, for example supplying customers with basic data about products or services that means they don’t have to look elsewhere for it
- Ensuring accuracy and reliability so that customer service standards can be significantly improved
How chat bots specifically benefit the insurance industry
Improved customer service
There are many points of connection with customers where chat bots could be beneficial. For example, they can take over – and speed up – the onboarding of new clients and also take the pressure off customer service teams at the claims notifications stage.
Chat bots are available around the clock
Insurance is not an industry where customer needs only exist during office hours. So, chat bots offer a major advantage as they can provide service 24/7.
Cutting down on paperwork and admin
Customers often find insurance processes off-putting because of the volume of paperwork and admin that can be involved. Chat bots have a key role to play in helping to reduce this while still ensuring essential stages are completed.
Jargon can be a big problem for consumers navigating the insurance industry but chat bots can help to reduce confusion and make things clearer by providing information and explanations.
Chat bots are a natural fit in insurance, especially for those forward thinking businesses looking to take a more modern approach. At Mandon we are currently exploring how chat bots could change our customers approach to business, and in return, how it could significantly improve their clients’ user experience.