According to some estimates, chatbots are expected to generate over $8 billion in savings globally by 2022, while also offering 24x7 customer service, lower processing time, faster resolution and straight-through processing, leading to increased customer satisfaction. However, when chatbot interactions are mechanical, non-conversational or inferior to human-based conversations, the initiative can lead to a loss of business.

1. Chatbots: New Sales Agent
in Insurance Industry
Artivatic.AI

2. Introduction
By 2023, 30% of customer service organizations will deliver proactive customer services
by using AI-enabled process orchestration and continuous intelligence
Insurance Chatbots
– Covering the
Extra Mile
Innovation — The
Path Forward
Cost-Effective
Solutions
Virtual Assistance
That Helps Better
A Chatbot That
Understands

3. Insurance Chatbots- The Future
According to some estimates, chatbots are expected to
generate over $8 billion in savings globally by 2022, while
also offering 24x7 customer service, lower processing time,
faster resolution and straight-through processing, leading to
increased customer satisfaction. However, when chatbot
interactions are mechanical, non-conversational or inferior to
human-based conversations, the initiative can lead to a loss
of business. However, when chatbot interactions are
mechanical, non-conversational or inferior to human-based
conversations, the initiative can lead to a loss of business.
Therefore, organizations need to carefully plan and execute
these systems to overcome strategic and tactical challenges.
With many serviceable areas in insurance processes, chatbots
are poised to play an important role across the insurance
value chain, including pre-purchase, purchase, customer
service and back-end operations. By doing so, they promise
to ease the complexity of insurance transactions, which are
traditionally characterized by manual form-filling, elaborate
questionnaires, time-consuming background checks, staff
shortages and cumbersome customer service.
By embracing the possibilities AI offers for innovation (read
our most recent report “Making AI Responsible and
Effective”), insurance companies can win the hearts, minds
and pocketbooks of customers.

4. The global rise of chatbot popularity
The global chatbot market is expected to reach USD$1.25
billion by 2025, growing at a CAGR of 24.3%.
This growth trajectory is also being felt in Asia Pacific, where
chatbots are projected to grow at a similar rate. It’s
increasingly clear that consumers prefer chatbots for certain
interactions. In one study, 69% of respondents said they’d
prefer chatbots for receiving instantaneous responses, and
the same percent said they’re most likely to use chatbots for
service related inquiries. Nearly one-quarter (22%) of
respondents said they already trust chatbot
recommendations for product purchases.
The global rise of chatbot popularity

5. Chatbots
across
Industries
Nearly every industry realizes
the potential for chatbots to
engage digital customers.
Prominent use cases
embraced by leaders across
industries include:
Travel and Hospitality
Travel assistance is the most popular chatbot application in this industry, with functionality like travel advice and suggestions, fares and discounts, and
flight and hotel bookings. Chatbots also engage customers with product information, store location, brand quizzes and online orders.
Retail and E-Commerce
AI-powered chatbots sense customer intent and provide relevant recommendations, opening up a new channel for online product sales. Chatbots also
engage customers with product information, store location, brand quizzes and online orders.
Government
For government agencies, conversational AI platforms are opening new service delivery channels.
Banking
chatbots deliver personalized offers, products and services based on customer profile data and life events.

6. Source- Cognizant
Communication: This is the chatbot’s ability to communicate effectively with the user.
It also encompasses the mode with which the user can communicate with the bot,
i.e., textual or voice enabled. Various aspects of communication can be personalized,
including language/mode, types of communication, channels, moods, etc.
Comprehension: Chatbots need to comprehend human communications (i.e.,
extracting context, sensing the user’s sentiment/ mood, understanding the direction
of a conversation). This core capability of an intuitive chatbot is essential for an
enriched, human-like conversational experience. While humans are naturally capable
of understanding sentiment and context, chatbots must be equipped with word-
based rules, NLP, context/sentiment extraction, historical analysis, etc. This all needs
to be handled carefully to avoid unintended bias.
Collaboration: Collaboration with other machines, devices and data sources is also
essential for the chatbot to continuously learn and deliver a true and expert-level
conversational experience

7. Chatbots set to change the insurance industry
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 customized
quotes to simplify insurance-related processes and
enhance customer service.

8. Insurance Chatbot Challenges
Impersonal
user interface
Inabilities to
contextualise
conversation
Scalability
Moving beyond
“push” market
Combining bots
with Human
Privacy and
Data Protection
Multi-language
support

9. Rising with Chatbots
Regulatory Challenges
Strategic Priorities
Enriching experience
Intelligent Conversation

10. Insurance
Chatbots
Benefits
Efficiency and convenience- These virtual agents provide an easy way for
consumers to gather information or ask questions on their own schedule. They
don’t have wait a day or two (or longer) for an email response – or stay on hold
waiting for the next available customer service representative.
24/7 availability- Most chatbots are available any time of day or night, which
means customers can submit a question when most other help lines and agents
aren’t available, such as nights, weekends, and holidays.
Immediate answers- 71% of customers who use messaging apps for customer
service, many do so because they want answers quickly – and chatbots may be
the answer because of their easy-to-use functionality and availability.
Reallocate employee workload-Insurance chatbots can also free up employees
who may otherwise be answering phone calls or replying to emails, which can
save time and money.
Streamline processes-Chatbots can impact and streamline everything from
claims to understanding data analysis.

11. Use-cases of Chatbots
in Insurance Sales
Process
Claims
Gather
Leads
Provide
education
Engage with
customers
and collect
feedback
Free up
employees

12. Road Ahead
According to a 2020 survey, the COVID-19 pandemic 50% of
consumers to question their medical and life insurance policies,
and 75% said that they’d prefer having a conversation before
making a purchase of an insurance policy.
Additionally, ±75% said that they trusted chatbots to provide a
new or a renewal quote, make a claim, add a member to
coverage, and update billing info.
In addition to customers’ increasing acceptance of chatbots in
the insurance industry, insurance companies’ spending on
cognitive/artificial intelligence software is estimated to reach
$571M in 2021 rising from $76M in 2016. Therefore, we expect
to see more implementation opportunities of chatbots in the
insurance industry.
If you’d like to develop a chatbot
for insurance, drop us a note
on contact@artivatic.ai with us.
We’d be happy to chat, learn
more about your use case and
build an interactive chatbot that
can assist you in increasing
conversion and customer
retention with the power of
conversational AI.

13. Thank you
For more insights, visit
https://blog.artivatic.ai/