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Chatbots – 10 key areas where insurers can derive value


Neutrinos - May 23, 2020 - 0 comments

Why chatbots? 

Customers are beginning to realise the value that chatbots can bring to them.  In a world where people are increasingly insistent on everything “right here, right now”, chatbots are becoming more favoured and widely used because they are fast, intuitive and convenient. For insurers, chatbots provide the means to develop an accurate, personalised and engaging customer experience. Chatbots allow insurers to collect valuable customer data – information that can facilitate better understanding of their customers and also help them to develop and offer relevant products and services to their customers.  This in turn allows insurers to analyse trends, create and sell more customer relevant products and services that will grow their business.

Here are 10 key areas where insurers can derive value from chatbots: 

  1. Immediate Response 

In today’s fast-paced world, speed and convenience win over customers far more than small price differences. Customers rarely quibble over a small extra payment in lieu of speed and convenience.  75% of customers expect immediate service within a few minutes of making contact online. Enterprise chatbots easily facilitate this demand by providing immediate responses to queries or issues. 

90% of businesses report faster complaint resolution with chatbots (MIT Technology Review).

  1. Drive More Revenue 

Intelligent chatbots guide customers on their policy buying journey, driving sales conversion and revenue. Advanced chatbots can analyse responses, compare and contrast different insurance products, provide advice and help, while gently up-selling additional and suitable products and services. 

  1. Reduce Costs 

Chatbots help to reduce costs by enabling insurers to attend to more customer queries without increasing their overheads. Virtual customer assistants can help reduce inbound calls to live agents by up to 40%.  Chatbots also have first call resolution (FCR) rates that are far in excess of live agents. 

57% of businesses agree chatbots deliver large ROI with minimal effort (Accenture Digital).

  1. Maximize Staff Skills 

On automation of calls, emails, SMS, social media messages and live chat sessions that would have otherwise required direct human involvement, conversational AI chatbots free up existing employees so that they can focus on higher value customer engagements and higher value business skills like analysis of data for new market penetration. 

In the 2019 Gartner CIO Survey, CIOs identified chatbots as the main AI-based application used in their enterprises (Gartner).

  1. Reach New Channels 

Due to the fact that chatbots are available on multiple devices, media and platforms that customers use every day, they bring in a slew of new channels for automated sales conversations by engaging customers and providing personalized advice and support. And this is achieved, without the high additional costs of office space or of having to hire, train and deploy new back office teams to build and operate each new channel. 

  1. Increase Loyalty 

Customers automatically gravitate towards the provider who is able to provide the most convenient and efficient services. No one wants to be stuck in queues waiting for the next available assistant. Once customers find a convenient and efficient service provider, not only do they remain with them but they also bring in other customers by sharing their positive experiences. 

A 2% increase in customer retention has the same effect on the bottom line as decreasing costs by 10%. 

  1. Available 24/7 

Having been accustomed to instantaneous services with a host of other businesses, customers now want their insurance services 24/7 and 365 days a year. They want to clarify doubts, ask questions and receive and consider information about products and services at any time of the day or night. Today’s customers demand anytime, anywhere service on the same devices that they use every day – and chatbots are perfectly placed to give them just that. 

  1. Increase Engagement 

Chatbots are an extremely powerful tool in fostering and optimising the relationship between insurers and their customers. As more and more customers begin to favour online methods of interaction, chatbots provide an opportunity to rekindle the best customer experiences with increased engagement, personalized customer service and much improved customer satisfaction. A Statista study demonstrates that over 64% of business respondents believe that chatbots allow them to provide a more personalized service experience for customers (Statista).

  1. Understand the Customer Better 

Data from person to person conversations can be analysed by insurers to more accurately understand customer trends and better interpret customer sentiment, providing invaluable insights into new product and service development. This data can be accessed at granular levels for individualised marketing and up to macro levels to spot overarching trends in the industry. 

77% of customers say chatbots will transform their expectations of companies in the next five years Salesforce).

  1. Build Differentiation 

Chatbots help deliver a fast, efficient and seamless experience to customers. This allows insurers to propel product differentiation and emphasise their unique value proposition through innovation, greater levels of customer engagement and intuitive, swift resolutions to customer requirements. By 2025 customer experience will take far greater precedence over price and product as a key differentiator.

With more than 200 years of cumulative technology experience, using cutting edge emerging technology, the Neutrinos specialized technical services team can build custom digital solutions, enabling organizations to strategically automate and streamline processes and procedures and optimize internal operations while complying with regulatory and compliance norms. The Neutrinos solutions are robust, high impact solutions – ones that are both effective and efficient and resonate with the need of the hour. And, it is faster and easier to roll out, implement and manage, than you might think. Talk to our experts today! 

References and acknowledgements:

  1. https://www.artificial-solutions.com/chatbots  

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