Conversational AI: Use cases for insurance

Banking and Insurance have a long history of utilizing emerging technologies to serve their customers effectively. In last decade they have exploited growth of the internet and increase in computer literacy to sell their products online via their website or mobile application, now with advancements in AI technologies (NLP, deep learning, etc.), they have set their eyes on leveraging AI technology to optimize their operation and delivering superior customer experience.

AI-powered Intelligent Virtual Assistants (IVAs) offer insurance customers a seamless conversational interface to get resolved, both before and after buying an insurance plan or policy.

Below are some of the key Conversational AI use cases for insurance brands.

Insurance providers are leveraging conversational AI to disseminate the policy-related information to customers. AI Assistant essentially functions as an interactive, conversational FAQ for the brands — answering customer queries about plans, policies, premiums, coverage, and more.

The benefits of using conversational AI are twofold, it helps the customer to get their queries answered effectively anytime 24*7.

Since Insurance is a complex product, the customer needs some assistance to answer their queries to understand and select the product. Conversational AI here acts as a virtual advisor to help the customer. It can start a conversation with the customer to understand their need and expectation.

Leveraging the power of Natural Language Understanding (NLU), the AI can precisely pinpoint the customer’s intent based on their responses. Based on this, the assistant can then make personalized policy recommendations to the customer.

Conversational AI can also be leveraged to help customers to purchase a policy, it can collect information during conversational workflows. Customer can upload their documents in which AI can accept/reject applications quickly after validating the information. Further payment gateways can be integrated into the conversational flow to complete the transaction.

Managing policy

Conversational AI can be very useful when it comes to helping customers manage their policies. For instance, AI can automate notification for renewal and send it to customers. Customers can update their policy details using virtual assistant by sharing information and authenticate themselves using AI. The assistant can also send customers reminders about upcoming payments and simplify the payments process on the customer’s preferred channel.

Another reason why customers reach Insurance provider by visiting their branch or calling their customer care is to submit their claim, check claim status, and guidance to process their claim. Well designed conversational AI integrated with organization database with access to customer information will help brands to serve their customer quickly and efficiently.

We have discussed above that how conversational AI can help Insurance providers to serve their customers anytime. Since 80% of customer queries require a routine and repetitive response, Conversational AI is highly valuable in handling spikes in customer queries and scale up customer support exponentially.

AI automation of customer care also improves the productivity and efficiency of your customer service representatives, as they are now free to dedicate their time and attention to tackling complex customer issues that require their intervention.

With the advancement of AI technologies, the adoption of conversational AI is increased in the Insurance sector. We have discussed some of the use cases above out of which few are easy to implement while others need a good amount of technical efforts however the day is not far when conversational AI becoming the preferred approach for digital-savvy millennial.

Till then, start small with low hanging fruits, continuously improve with feedback loops in place and move towards complex implementation.

I am a customer experience enthusiast with mission to discover customer experience challenges and designing programs that really delight customers.