Library: AI Multiple – Top 10 insurance chatbots applications/use cases in 2021
Executive summary :
Chatbots can provide faster and cheaper customer service, and accelerate sales and marketing efforts. There are chatbot applications for almost all industries, including healthcare, banking, and insurance. According to a statista survey in 2019, 44% of customers are comfortable using chatbots to make insurance claims, and 43% are comfortable using them to buy insurance policies. Chatbots can manage claims instantly and deliver customised quotes to simplify insurance related processes and enhance customer service.
Chatbot use cases in insurance
Chatbots enable 24/7 customer service, facilitate ordinary and repetitive tasks, as well as offer multiple messaging platforms for communication. Insurance providers can leverage chatbots in:
Insurance policies
When a chatbot holds a conversation with policyholders or potential customers, it can:
Provide customised quotes to new customer
Chatbots can collect information about the customer’s finances, properties, vehicles, health status, and relevant data to provide advice on quotas and insurance claims, and offer potential customers an overview about the available insurance solutions that fit their criteria.
Answer policyholder queries
Chatbots can provide policyholders with 24/7, instant information about what their policy covers, countries or states of coverage, deductibles, and premiums.
Cross-sell
Chatbots can leverage recommendation systems which leverage machine learning to predict which insurance policies the customer is more likely to buy. Based on the collected data and insights about the customer, the chatbot can create cross-selling opportunities through the conversation and offer customer’s relevant solutions.
Claims management
Claims vary based on insurance types and insurance providers. However, all claims pass through the following steps:
Claims filing
Claim filing or First Notice of Loss (FNOL) requires the policyholder to fill a form and attach documents. A chatbot can collect the data through a conversation with the policyholder and ask them for the required documents in order to facilitate the filing process of a claim.
Damage assessment
Based on the insurance type and the insured property/entity, a physical and eligibility verification is required. A chatbot can ask the policyholder to send pictures or videos of property damage (e.g. a car accident) to inspect the damage, send it to a human agent or use AI/ML image recognition methods to verify the damage and determine liabilities depending on the context.
Claim processing
After the damage assessment and evaluation is complete, the chatbot can inform the policyholder of the reimbursement amount which the insurance company transfers to the appropriate stakeholders.
Settlement
At this stage, the insurance company pays the insurance amount to the policyholder. The chatbot can send the client proactive information about account updates, and payment amounts and dates.
For example, Metromile, an American car insurance company, used a chatbot called AVA to process and verify claims. AVA was able to approve 70-80% of claims immediately.
Fraud detection
Fraudulent activities have a substantial impact on an insurance company’s financial situation. In the UK alone, more than 27,000 fraudulent property claims were filed in 2019. AI-enabled chatbots can review claims, verify policy details and pass it through a fraud detection algorithm before sending payment instructions to the bank to proceed with the claim settlement.
Broker management
Brokers sell insurance policies on behalf of one or multiple insurance companies.
Q&A
Though brokers are knowledgeable on the insurance solutions that they work with, they will sometimes face complex client inquiries. They can rely on chatbots to resolve those in a timely manner
Communicating new policies
When a new customer signs a policy at a broker, that broker needs to ensure that the insurer immediately (or the next day) starts the coverage. Failing to do this would lead to problems if the policyholder has an accident right after signing the policy.
Most of the communication of new policies between the broker and the insurance company takes place via structured data (e.g. XML) interchanges. However, some brokers have not embraced this change and still communicate their new policies via image files. Insurers can automatically process these files via document automation solutions and inform brokers about any issues in the submitted data proactively via chatbots.
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