How does Сonversational AI evolve in the Insurance Industry?

Technology is advancing daily, affecting industries from retail to manufacturing various goods and even insurance. It is becoming increasingly clear that artificial intelligence (AI), blockchain and machine learning have the potential to change the future of business and the way people live.

The insurance industry is one of the oldest financial businesses in the world. This industry changes very slowly and does not often introduce something new, but other new technologies directly impact the insurance market.

Why is digital transformation so important for the insurance industry?

Digital transformation will help the insurance industry solve some of the problems and improve its business strategies:

• оne important part of the process that many forget about is understanding the client. Find out what he wants and how to respond to it;
• data management is essential for decision-making in insurance companies;
• the process of redesigning insurance strategies includes several tasks, such as measuring, controlling, and assessing risks, all of which are being transformed into a digital environment and so on. Digital transformation will help to process all the information to correctly apply it to other indicators in the future;
• using multiple channels means your brand will use two or more marketing methods to share your content and messages across multiple platforms. Simply put, an omnichannel strategy makes it easier for consumers to complete sales transactions and interact with brands through the most appropriate platforms.

How conversational AI is being used in the insurance industry

• management of internal operations;
• сustomer awareness and education;
• risk assessment to better understand ideas, adjust plans, and make better decisions;
• claims handling and payment assistance;
• collection of reviews.

Despite these potential challenges, almost 80% of insurance executives believe that AI will change the way insurance companies collect information and interact with their customers. According to some research, a global consulting firm, adopting AI could increase insurance process productivity and reduce operating costs by 40% by 2030. However, more research is needed to determine how interested insurance companies’ customers are in this technology.

Due to insurance policy complexities, insurers spend ample time and money to keep customer support up-to-date. With AI-based tools and natural language processing, it is possible to create structured responses based on past customer interactions and requests. Sample historic query resolutions can serve as a guideline to automate FAQs using AI and automation. Conversational AI can handle and scale multiple customer-facing processes. AI-based platforms like Conversational Automation (CA) can seamlessly integrate the front end with the back end to build a superior customer support model.

Another focus area for conversational AI in the insurance industry is augmenting human capabilities. AI-based platforms can help human agents with the necessary real-time assistance, and knowledge bank support, automate after-call work (ACW) and ensure that the agents comply with the regulations and disclosure norms set forth by various governing bodies. Thus, automating mundane tasks can render the agents free to do what they do best — empathize with the customers. Top insurance players such as Berkshire Hathaway, Allianz, and Ping An Insurance are already implementing the hybrid workforce model of human and digital agents, fostering improved throughput, efficiency, and service delivery.

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This was my brief overview of improving the insurance industry with the help of AI. As using AI technologies increases, the insurance industry could become more efficient, accurate, and safer. I hope that in the future it will be more and more possible to see AI in various fields. As the adoption of AI and other digital solutions continues, insurers and consumers will benefit.

Please share in the comments what areas you would be interested to learn about and I will prepare the most interesting articles.

All the best, Aliya!