Conversational AI

Chatbots are fast becoming the new trend in the Insurance sector due to their efficiency and accuracy. Arguably, the fundamental goal of any insurance company is to satisfy its customer base. Press (2020) states that 62% of Americans prefer using chatbots when seeking services from their preferred brands. Therefore, Insurance companies should embrace chatbots in their day to day operations as this is the new norm in the mentioned industry. Recently, such programs have become widely popular in the US market when automating simple tasks since they have proven to be more efficient in handling customer requests, including retrieving passwords, data, and billing queries (National Association of Insurance Commissioners, n.d.). A Nexus survey conducted in 2019 found that more than 80% of large US-based insurance companies had fully functional AI systems, including chatbots (Golia, 2019). It is estimated that the chatbot industry’s market value will reach $1.25 trillion by 2025 (National Association of Insurance Commissioners, n.d.). Overall, due to the widespread popularity of chatbots in the insurance industry, firms must deploy such solutions to keep up with their peers.

Insurance companies must adapt to the tech-oriented world, where everything is automated. Capiello (2018) emphasizes that such firms must learn to be dynamic since they face changing economic times and ever-changing customer prospects. Present clients want to be served promptly and efficiently, a feat that is best achieved using chatbots. Therefore, insurance companies must learn to embrace this technology to serve this new breed of customers properly. This has led to a paradigm shift in the insurance sector, where companies are forced to be innovative to compete favorably with their peers (Klapkiv & Klapkiv, 2017). In summation, the rise in technology is the primary motivating factor for insurance companies to switch to AI technology when serving customers.

Chatbots pose several significant benefits for insurers, and such firms must learn to embrace this technology to serve their customers. Accordingly, insurers today have understood the usability of such programs in improving their customer service experience (National Association of Insurance Commissioners, n.d.). Some of the tasks that are currently chatbot-automated in US insurance companies include agent advisory services, human resource tasks, and many more. Furthermore, chatbots have superiority when compared to humans due to their efficiency in performing tasks. For instance, they are available 24/7 and can serve hundreds of clients at a time. According to the Insurtech Company, Lemonade, chatbots help secure a claim for a client in just 3 minutes (National Association of Insurance Commissioners, n.d.). Using such programs, customers can now make file claims faster and more efficiently. In brief, chatbots are the saving grace for insurance companies; they can help streamline otherwise inefficient processes, which in turn aids in boosting customer satisfaction.

It is quite palpable that the time has come for companies to embrace chatbots in day to day operations fully. The benefits of such systems have proven to outweigh their costs by far. Furthermore, due to their speed in task-handling, they have proven themselves to be far more efficient than humans. Clients have also found them to be friendly and prefer interacting with chatbots when seeking services from insurance companies. Therefore, the insurance sector should devise methods aimed at boosting the integration of chatbots into their systems. Smaller companies should be trained on the benefits of such programs for them to understand their usability. In brief, such companies should embrace chatbot technology since it is vital in boosting customer service experience, among other benefits.