3 insurance chatbot use cases for customer service

Umbrellas in Blue Sky
Nov 25, 2020
James Eisner
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Did you know that insurance companies who provide exceptional customer experiences generate 2 to 4 times more revenue and 30% higher profits than their counterparts who struggle with customer service. 

Unsurprisingly, happy customers are 80% more likely than unhappy customers to renew their insurance policies. Still, in spite of this, 71% of insurance customers report being unhappy with their provider

Great customer service is clearly an easy solution to this problem. But how and where should insurers start? The answer is online. 79% of insurance customers report using a digital channel to interact with their insurer

Customers have gone digital and your customer service needs to follow.

Creating the ideal online customer experience

Digital customer experiences are more important than ever. With the growing sophistication of digital technology like chatbots and RPA, customer service automation is now not only possible, but can be a game-changer.

One of the most powerful ways to automate customer service is through chatbots employing conversational AI. Bots are perfectly suited to automatically handle many of the simple but time-consuming requests that are bogging down your customer service team. 

AI-powered chatbots give customers the instantaneous online service that they’ve become accustomed to. They won’t look down upon being helped by a bot either. The majority of consumers don’t care if it’s a machine or person who helps them as long as they get the right answer quickly. In fact, 54% of consumers would always choose a chatbot over a human if it saved them 10 minutes. Bots are the way to go.

That said, it’s important to understand that chatbots aren’t meant to handle every question. They’re best suited to resolving simple requests. For more complex issues, there needs to be an insurance agent on the other side of the live chat. 

So, what tasks should you automate? Here are 3 use cases you can quickly start automating with an insurance chatbot

3 customer service challenges bots can solve for insurance companies

  • Answer insurance policy questions
    Provide customers with relevant information about what their policy covers in real time.

Person Asking Bot About Dental Coverage
  • File insurance claims
    Let customers file claims directly through a bot. Since bots are available 24/7 on multiple platforms, customers can submit their claim when and how they want.

Person Filing an Insurance Claim Through a Bot
  • Select insurance plans
    Give potential customers all the details they need to buy insurance products or update their policies.
Bot Offering Travel Insurance Plans to Customer

What’s in it for insurance companies?

There are a ton of benefits for insurers who opt to use chatbots alongside their other customer service tools. Of course, customers get quicker service but what about the insurance company itself? These are just a few of the benefits:

  • More satisfied and efficient customer service agents
    One of the biggest challenges facing customer service teams is the fact that the vast majority of the questions they handle are basic and repetitive. Answers to these questions can easily be provided by bots. This gives agents the chance to tackle more complicated issues, improving satisfaction and productivity.

  • Lower costs
    Automation improves customer service quality and increases productivity. This leads to cost savings from more efficient agents and revenue growth from satisfied customers renewing their policies and purchasing complementary insurance products.

  • Improved service capacity
    Since agents don’t need to resolve day-to-day questions, they have more capacity to manage unexpected surges in customer requests.

In the end, bots benefit everyone. Customers will be happier and more likely to keep their policies. On the other hand, you improve customer support capacity and your agents’ job satisfaction while reducing your customer service costs. 

This just scratches the surface of how chatbots can streamline customer service processes in the insurance industry. Bots can be customized to handle your organization’s specific needs and pain points. 

Want to learn more? Discover some of the other ways chatbots help insurers’ customer service operations in new our insurance eBook

Or, if you’re ready for a bot of your own, come get started with Mindsay.

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