The state of digitisation in insurance and how Conversational AI solves current challenges

The state of digitisation in insurance and how Conversational AI solves current challenges

Opening an account, creating a security account, taking out a loan or concluding an insurance policy – processes that every insurance company carries out several times a day. In the past, it was up to the customer advisor in the branch to complete this process. Nowadays, direct insurers or digital offerings from established insurers are responsible for many contract conclusions.

Significantly involved in this development are InsurTech startups, which are either insurers themselves, or they support insurers with their technological products to meet the digital requirements of customers. 

This guest article is based on a presentation that Christian Augustin (e-bot7) and Dennis Bosser (freeyou AG) presented at the 7th InnoVario of V.E.R.S. Leipzig GmbH on November 16-17, 2021 in Siegburg/Bonn.

Customer service around the clock thanks to Artificial Intelligence & Chatbots

The new customer behaviour requires being available to the customer 24/7 with advice and assistance. In this context, chatbots can answer a large proportion of customer inquiries around the clock and automate certain routine requests, such as card blocking or retrieving a copy of one’s insurance coverage.

The channel through which the customer contacts the insurance company does not matter, as long as the chatbot can access the CRM. For the majority of customers, communication via messenger services has already become part of their daily lives. So why not offer them the same service in customer service?

More complex issues are pre-qualified by the chatbot and passed to the customer service representative as needed. The customer feels valued by the immediate feedback through the chatbot, the customer relationship is strengthened and generates the customer loyalty it needs for the very competitive insurance market. When it comes to chatbots, the better the technology, i.e. Artificial Intelligence (AI), Natural Language Processing and Deep Learning, the more benefits the insurer and customer will have in the end.

Automating upselling with Conversational AI

The insurance company HDI shows how Conversational AI can be successfully used for the sales process: Customers can flexibly add additional riders to their insurance policy for a limited period of time by interacting with the chatbot Lizzy – completely independent of time or holidays.

The chatbot processes the requests fully automatically and the upselling of the driver extension does not tie up any additional resources from the sales department. Within just 3 minutes, the customer can extend their insurance policy in the chat thanks to a Paypal integration, wherein the insurance company can record another contract conclusion.

Multichannel strategy for a better customer experience

With a multichannel strategy, customers can contact their insurance company quickly and easily and clarify their concerns. To achieve this, the service offering must be available across all significant channels so that the customer experiences a positive customer experience. Conversational AI plays an essential and central role in this.

With the help of a chatbot, transferred amounts, additional insurance contracts, or an insurance status can be retrieved quite easily without physically visiting a branch. The transactions are both location and time-independent, and can be carried out from all devices.

Today’s insurance structure requires more individualised advice for each customer – around the clock, on all channels – due to rising customer expectations, increasing competition, and growing product offerings. Thanks to the use of chatbots and AI, insurance companies can ensure more productive and efficient business activities, while covering required security standards, automating processes and providing consumers with a unique and innovative customer experience.

In a joint presentation at this year’s InnoVario that took place on November 16 and 17, 2021 in Siegburg/Bonn, entitled “AI in the insurance industry: customer service around the clock with Chatbot Freeda”, Christian Augustin and Dennis Bosser provided concrete insights and outlooks on the use of chatbots in the insurance industry.

InnoVario is an innovation fair for the insurance industry that aims to promote exchange and dialogue amongst each other. In addition to a classic exhibitor area, InnoVario features various expert presentations on the current concept. You can find more information here.

This article was originally published in German on Experten Report

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