Insurance companies have been quick to adopt the new chatbot technology to meet their clients’ demand. It is expected that insurance chatbots will revolutionize consumer engagement in the insurance industry by automating manual processes, such as lead generation and claims processing.
Though the time-saving automation plays a crucial role, insurance chatbots also create a more complete customer experience. They offer consumers around-the-clock customer engagement. Consumers can simply access the information and assistance resources they require based on their schedules. In the end, a more straightforward and effective insurance process leads to better outcomes, happier consumers, and better relationships with your policy customers.
As the insurance sector continues to evolve and grow in complexity, companies must stay ahead of their competitors and leverage digital solutions, such as chatbots. As I documented in this blog, I have personally spoken to many agents who are currently working in the insurance industry and have previously worked in the same field. I have also documented and researched surveys on insurance chatbots across several journals and research papers.
In this article, I will share my opinion about what insurance chatbots are, their benefits, some real-world use cases, leading company examples, and the best tools to help you get started.
What is an insurance chatbot?
An insurance chatbot is an AI facilitator that enables an insurance company to handle incoming customer inquiries and requests with greater efficiency and accuracy. Additionally, this chat facilitation can answer FAQs and process claims and is available anytime and anywhere worldwide.
When it comes to insurance chatbots, general processes are streamlined, which enhances the insurance client experience. Chatbots can either be rule-based or AI-based.
What's the difference between an AI-powered insurance chatbot and a rule-based chatbot?
Rule-based chatbots work through a series of workflows to automate some very simple processes and, most importantly, answer FAQs or walk clients through steps. Rule-based chatbots can help with fundamental problems and repetitive (easy-to-solve) tasks, but only process very basic scenarios.
AI-based chatbots utilize scalable insurance technology, enabling flexible and dynamic conversations that feel more human-like. AI-based chatbots are adaptive and learn from each customer conversation and every customer interaction. They provide a flexible resource for insurers and employers to utilize for various operational business roles, including underwriting and fraud detection.
Benefits of insurance chatbots
There are ample ways in which insurance chatbots can help organizations. I have listed below the top 8 benefits of implementing an insurance chatbot.
1. Data collection
A fascinating alternative for gathering and evaluating user data is the use of chatbots. Because it helps insurance firms understand the requirements, interests, and behaviors of their clients, making it highly beneficial for marketing and lead generation.
2. Overall cost reduction
In several cases, chatbots have shown the ability to save customer support costs by 30%. They automate several customer interactions and tasks, which makes resource formatting much easier. Chatbots can efficiently manage a large volume of customer requests at a lower cost than hiring additional representatives.
3. Increased efficiency
Implementing an insurance chatbot can provide substantial efficiency improvements in the insurance industry. Effective digital customer service is more efficient when you can reduce the demand on support teams. Reducing the inquiry volume frees up time for businesses and improves agent productivity.
4. Improved customer service
Insurance bots respond to user questions, enabling customers to receive immediate support and take action autonomously. This is especially important because 40% of consumers prefer a self-service solution with no human contact. Better self-service has ultimately reduced the workload required of agents, decreased wait times, and provided the best customer experience.
5. 24/7 accessibility
Previously, it was humanly not possible to attend to every client query 24/7 throughout the year. However, insurance chatbots are always working and provide instant customer service. Customers can get help any time of day because the days of waiting for someone to pick up the phone or having missed calls and conversations have gone away.
6. Multilingual support
If you want to expand your business globally, you will need a multilingual chatbot. Insurance chatbots can offer multiple languages, allowing insurers to serve many customers that make up a target audience market without the expense of hiring additional multilingual support personnel.
7. Lead generation
Lead generation is easy with chatbots. Simply use a contact form, and your chatbot is able to secure qualifying information regarding customers before they engage with your chatbot, and you effectively convert a website visitor into a prospective lead.
8. Enhanced data privacy
Chatbots help safeguard sensitive customer information through automated workflows. Chatbot software can ensure that data is processed securely, reducing human risk and protecting against data leaks, therefore making privacy a key function of chatbot data management.
Top 10 use cases of insurance chatbots
With the implementation of insurance chatbots, there has been a significant shift in how insurers interact with their clients and manage their daily business operations. Insurance chatbots can help reduce overall expenditure and simultaneously raise your clients’ satisfaction. I have listed below the top 10 major use cases of insurance chatbots for your reference.
1. Pre-qualifying clients
AI chatbots will allow your insurance sales agents to converse with potential customers who are only serious buyers. AI chatbots can even gather necessary data to determine if a customer qualifies for specific purchases before connecting them to an agent, saving both the customer and insurance companies valuable time.
For example, an AI agent for home insurance could ask questions about the size and age of the home, its location, and the security features of the home and use that information to determine whether to accept the application. Now, your sales reps can simply discuss the customer's options without having to conduct a comprehensive audit of their situation themselves.
2. Giving thorough price breakdowns
In the qualification round, an insurance chatbot can provide an explicit overview of the insurance costs that they plan to discuss under various plans. These costs may include premiums, deductibles, and even fees, allowing consumers to remain budget-conscious with more than one plan.
For instance, an insurance chatbot could create a side-by-side comparison of the two auto insurance coverages, illustrating the monthly payment amount, the maximum dollar limits on each coverage, and any discounts that may be offered to the consumer; this is critical information that allows the consumer to make an informed decision.
3. Information and execution of policies
Chatbots have instant access to information about policies, including coverage, renewal dates, and other details, which means customers can easily manage their policies or request changes without needing an agent. A chatbot can help a policyholder get the insurance card, change their address, or even change the coverage in minutes.
Simply ask for either a customer number or an insurance number, and a chatbot can complete the task in seconds, saving time. Thus improving time and effort, creating better customer satisfaction.
4. Quote Generation
On-demand insurance quotes are made feasible by chatbots, which give users access to vital insurance information. Reviewing possible plans and the conditions of their coverage is simple for users. The user will be prompted by a chatbot to think about things like location, driving history, and car type. Since the most crucial information is already entered in the field selections, the chatbot will then produce many auto insurance quotations for the user to examine.
5. Fraud Detection
AI-enabled chatbots can sift through claim data to spot unusual and suspicious actions and behaviors. The chatbot will be able to identify potential fraud at the earliest stage of the claim process and quickly escalate the highest-risk fraud patterns to a human agent for investigation while continuing to process genuine claims. For example, a travel insurance chatbot may identify anomalies, such as travel dates that don’t match or unusual expenses, and escalate these to the fraud team.
6. Processing and paying claims
Chatbots can assist clients with the claims application process. They can assist customers in making their submission, can provide real-time status information related to the claim, and indicate what documentation is required.
For example, a chatbot could assist a user in reporting a car accident by asking questions to determine the location of the accident, prompting the user to upload pictures and information about the other driver, submitting the claim, and providing updates on the claim's status throughout the process.
7. Management of policies
Managing insurance accounts and policies can be complex, especially when a customer has multiple policies or coverages. Insurance bots can help reduce this complexity and improve your consumers’ experience by allowing self-service and allowing users to take actions, such as:
- Change personal information
- Change coverage
- View policy documentation
- Renew policies
Insurance agents may spend more time on complex issues by automating these operations, thereby avoiding being overloaded with repetitive tasks and interactions. Additionally, it will enable your customers to take charge of their insurance experience with minimal effort.
8. Client onboarding
Insurance chatbots can quicken, simplify, and help with the sometimes lengthy and tedious onboarding process. Onboarding typically involves the client completing paperwork, submitting the required documentation, and answering relevant questions.
Thanks to your chatbot, your new policyholders or clients can be onboarded more quickly, more easily, and with less effort on your part. This entire process enables you to focus on your tasks, and you can also automate your follow-up and ongoing tasks.
9. Collection of payments
Another valuable use case for insurance chatbots is facilitating payments for customers. If connected to your payments system, chatbots could remind policyholders of upcoming payments, autofill their information, and accept payments via a secure form hosted by the chatbot.
Automating these actions makes payment and navigating payment systems much easier for customers, increases the likelihood of on-time payments, and reduces the risk of errors because customers are often unaware of the correct procedure.
10. Feedback and loyalty
Gathering feedback from your customers is essential for developing your insurance products and services, as well as for enhancing your customer service response. This is typically where chatbots can assist by automatically gathering feedback after specific customer interactions, such as after a claim is processed or a customer support ticket is resolved.
By using a chatbot to ask customers a simple NPS survey or a more detailed survey, we have shown that customers are much more likely to engage with a chatbot to give feedback, resulting in increased survey response rates overall. You can then use this data to continue to adapt the chatbot's actions on an ongoing basis, based on the expectations of your customers, which should then begin to deliver improvements in long-term customer satisfaction and loyalty.
How to use an insurance chatbot for customer service?
The insurance sector is just another form of customer service that requires constant monitoring to prevent any client escalation. In the sections below, I have listed some of the best ways to incorporate insurance chatbots for effective customer service.
1. Choose the correct chatbot.
When designing an insurance chatbot, you may want to choose between an AI chatbot and a rule/intent-based model. Rule-based chatbots are programmed using decision trees and pre-written messages, often using keywords and phrases selected by customers. If they can help answer FAQs, they have their place, but they tend to be extremely unhelpful, which can be frustrating for customers.
While looking at AI-powered chatbots, they are powered with the ability to handle a significant number of tasks. Specific decision trees do not bind an AI chatbot; however, by utilizing machine learning, NLP, conversational AI, and/or generative AI, they are designed and trained to achieve far greater capabilities.
Based on all the facts, I would choose an AI-supported chatbot that can generate a humanized experience, provide conversational support across multiple customer conversations, and offer the most advanced automated support.
2. Incorporate an AI knowledge base.
Adding a knowledge base to your chatbot is taking the capabilities and horizon of your insurance chatbot to the next level. Knowledge Base content is content of knowledge and information that is specific to your business for the chatbots to use thousands of times as knowledge.
Insurance chatbots will be able to tap into that knowledge base content to deliver specific and laser laser-focused, and valuable queries to seemingly unlimited customer interactions, virtually guaranteeing a highly engaged experience and satisfaction.
There is even an ability to integrate your knowledge base with your GenAI chatbot, so you can train the chatbot with that knowledge and data, which means your bot will be able to answer whatever questions may be asked about your business, products, and services through the knowledge base and generative AI knowledge.
This will ensure that your insurance chatbot provides reliable information, consistent responses, and a highly humanized experience. It is worth noting that to ensure your chatbot is current with the latest insurance product offerings and regulatory obligations, your knowledge base, only ingrained in the chatbot, must be routinely updated and maintained.
3. Apply in tandem with human-powered assistance.
You should also keep in mind that chatbots are not the solution for all customer service needs. There are going to be situations where even the best AI-powered insurance chatbots require human assistance to get the best outcome.
In these situations, it is essential that your chatbot can easily transfer the issue to a human agent. Smooth transitions from chatbots to representatives have been shown to increase the likelihood of customers remaining loyal to your company by as much as 60%.
If you fail to offer this benefit, it may limit the overall user experience with the chatbot, and ultimately, it may limit the use of automation and AI customer service. Beyond that, you may risk alienating customers and ultimately having a bad reputation for customer service. But do not fear! With Copilot.live, you can link a chatbot with your other customer contact channels, such as websites, WhatsApp, voice calls, and custom public links.
4. Ensure data security
Customer support relies on data security, and chatbots are no exception. Since insurers regularly handle personal and financially sensitive information, you will want to protect customer data from unauthorized access and breaches. I have listed below a few key points to consider regarding the security of your chatbot software.
- Policies regarding confidentiality: Check your chatbot platform choices to determine if your provider has policies and controls in place to protect customer privacy, including, but not limited to, how the data is stored, who has access to the data, and what the data is called during use. Review their privacy policy thoroughly, and be sure to determine if they will sell or share your data with third parties without your knowledge or consent.
- Software updates: The chatbot provider must regularly run software updates to address security vulnerabilities and keep their systems up to date with new technologies.
- Compliance: Depending on where the insurance company is located, you will need to use chatbot platforms that offer compliant programs. For instance, HIPAA in the U.S. or GDPR in the European Union.
Top 5 insurance chatbot platforms
Selecting the ideal chatbot platform is essential for developing a valuable digital assistant that can effectively cater to the unique needs of the insurance sector. The correct tool can make all the difference, whether your goal is to improve policy management, expedite claims processing, or improve customer service. I have listed the top 5 chatbot platforms that you can avail yourself of whenever you plan to build an insurance chatbot for your brand.
1. Copilot.live
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You can save documentation, automate support, and receive programming help with AI support with Copilot.live. You can integrate the tools and changes across the entire customer journey and leverage many capabilities like sophisticated AI, in this case, Copilot.live insurance chatbots.
Copilot.live is a multimodal tool that engages your client through the various media they use, including websites, WhatsApp, and Instagram. It has 50+ languages. Copilot.live is your source for your next chatbot service, with seamless agent-to-human handoffs and a simple 4-step setup process. Supported by Gemini, Claude, Llama, and Deepseek chat, Copilot.live is your go-to solution for all you chatbot queries.
Copilot.live is an AI-first platform that can be integrated with over 100 platforms and offers competitive message pricing per unit. With Copilot.live, you can quickly change the look and feel of your chatbot with the built-in themes, or, if you want more control over how your chatbot looks, select your fonts, colors, and all other UI components. The Persona tool enables you to establish the tone, mannerisms, and answer characteristics of your chatbot, ensuring consistent brand voice.
Key features
- You can rapidly change the appearance of your chatbot by utilizing any of the published themes available to you, or if you want to own the look and feel of your chatbot fully, simply select your fonts, colors, and other UI components.
- Unlike most platforms, Copilot supports both text and voice, allowing users to hold real-time AI phone calls for a conversational experience without needing to type on their keyboard devices.
- You can deploy your chatbot where your users are located, on a website, on WhatsApp, in a phone call, or a public link, or wrap it into mobile apps using the SDK.
2. Haptik
The Haptik chatbot is a flexible AI agent that provides engaging and enjoyable user experiences much like human agents. Created with leading AI models like GPT, Llama, and Claude, Haptik allows you to test drive what works for your specific business needs. Haptik allows you to deploy your chatbot on web, chat, and voice message channels, which helps your brand easily reach your customers at their preferred channel of choice.
Haptik supports over 100 languages, making it easy to communicate with customers worldwide. The result is that the customer issue is mapped out properly or resolved sooner. If you have large volumes of phone-based inquiries, you can choose to utilize intent detection if you want to respond based on contextual information.
Haptik gives your customers the ability to talk rather than type, leading to richer interactions and allowing quicker, easier, and more personal engagements. This allows you to properly route the call to meet a customer's actual need, rather than having them select one of many menu options, ultimately leading to better customer satisfaction.
Key features
- You will get access to custom dashboards that give you a full view of agent performance so you can allocate resources correctly and improve customer support.
- The Haptik chatbot can make accurate product recommendations to your clients based on information from your product portfolio.
- With Haptik chatbot, you can gain business insights by using AI recommendations, CSAT & NPS, smart funnels, and real-time conversation data.
3. Yellow.ai
You can leverage the impressive AI capabilities of the platform to be more efficient in your customer service activities with accurate, fast, and personalized interactions. Yellow.ai utilizes verbal, chat, and email interactions to replicate human conversations. With internal LLMs and over 150 plug-and-play integrations, you can get speed and precision and better launch times.
You can automate support lifecycles to increase agent productivity and reduce effort per ticket. To further support your team, you can also offer your employees AI capabilities such as tone changers, coaching tools, and sentiment detection with yellow.ai.
Yellow.ai chatbots then identify events and intents in complex exchanges to kick-start escalation tickets and anything else you need. To improve support workflow, we provide reply recommendations, a 360-degree view of your customer, automated ticket assignments, and collaboration tools.
Yellow.ai implements numerous protections and protocols to ensure the security of both users and businesses. With approval for HIPAA, GDPR, ISO, SOC 2, and responsible AI, yellow.ai ensures the protection of confidential information with best practices and a foundation of industry-leading security and compliance.
Key features
- Yellow.ai features AI-powered agents that speak over 135+ international and regional languages.
- Leverage dynamic AI agents that can engage in empathetic conversations and quickly identify ways of thinking.
- Leverage 35+ channels to connect with your clients on their preferred platforms.
4. SnatchBot
With their enterprise-grade platform, you can build intelligent, conversational AI assistants that create a world-class experience for every interaction with a customer. Build, deploy, and manage AI assistants utilizing enterprise-level tools built for the modern business.
Your assistants could be deployed to various channels, including WhatsApp and Facebook Messenger. You can create rich voice experiences, featuring natural language conversations and multilingual capabilities, while also natively connecting to your telephone and smart devices.
SnatchBot features a voice assistant, unlimited bot templates, a dedicated account manager, unlimited conversations, a Service Level Agreement (SLA), 24/7 support, and community support.
Key Features
- Access meaningful dashboards with predictive functionalities to gauge your performance metrics, analyze user engagement trends, and assess the metrics around the conversation.
- Going from idea to production has never been easier with a production-ready AI assistant spin-up in minutes using point-and-click templates, drag-and-drop flows, and one-click integrations.
- Enterprise-grade security that includes SOC 2 Type II compliance, end-to-end encryption, role-based and scope-based access controls, and complete audit trails.
5. Botpress
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The Botpress platform leverages the unlimited possibilities of the largest language models (LLMs)—including OpenAI, Anthropic, Groq, FireworksAI, and more. You can use Botpress to build agents that incorporate LLMs for richness in the conversation and create a compelling conversational experience using natural responses. You can also import knowledge from your custom data, such as websites, docs, or PDFs.
The Botpress chatbot integrates with websites and also connects to multiple platforms, including WhatsApp, Telegram, Make.com, Calendly, and Hugging Face. By automating information management, you can save your sales reps' time and eliminate manual data entry. This will also help you exponentially scale your lead generation by providing new opportunities to grow your lead pool continually.
You can be at the forefront of artificial intelligence with the Botpress Hub. There are numerous possibilities available to you, particularly in terms of capturing user inputs for the vectorized database and developing third-party integrations to provide customized chatbot experiences.
Key features
- With Botpress, your bot can feature real-time collaboration, domain whitelisting, enhanced knowledge bases, increased usage limits, and live chat support.
- Botpress also provides handoff conversations to a live agent, custom analytics, increased usage limits, and community support.
- Furthermore, Botpress offers a visual building studio, free monthly AI credits, an integration hub, and platform API access.
Top 3 insurance chatbot examples
Now that we’ve covered the previous points, let's take a look at the top 3 real-world insurance chatbots and their key features.
1. GEICO
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GEICO is one of the leading providers of auto insurance, offering a virtual assistant to enhance its customer service. I believe the chatbot does well in answering your questions related to insurance or policies quickly. However, the biggest thing I learned while testing the bot is that the simpler and more direct you make your prompt, the better your response will be. A simple and clear request will enable Geico's chatbot to comprehend the request more quickly.
Although the GEICO chatbot handles several requests, it is usually easier to communicate with a real person in certain situations. You can synthesize and come in and ask to speak with someone during any phase of the conversation.
- The bot is designed to provide a speedy entry point for users, helping them understand the information they are seeking.
- GEICO's bot can initiate conversations and attempt to understand users' intent.
- The bot is also meant to acquire user feedback at the end of each interaction. This enables GEICO to refine and upgrade its chatbot continually.
2. SWICA
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More than just an insurance company, SWICA is your personal and competent partner throughout your life, supporting you at every stage. Their support services will complement the health promotion and preventive assistance program services, and when seeking medical advice for individuals managing health restrictions, they will provide seamless care that assures you always get the right support.
In terms of insurance, SWICA offers a variety of options, including basic insurance, supplementary insurance, hospitalization coverage, loyalty bonuses, and combination advantage offers. SWICA will cover 90% of the costs for every one of the Completa Forte supplementary insurance elements to the value of 500 francs per calendar year.
- SWICA's chatbot—IQ—is available 24 hours a day to give users access to the ongoing services.
- IQ incorporates intelligent natural language understanding to process information and respond in a unique manner. IQ provides seamless integration and compatibility with software from BSI to provide the most effective and customer-friendly service workflow.
- The SWICA chatbot has a continual learning capacity, which allows the chatbot to improve at all times.
3. Lemonade
Lemonade is an AI insurance company that provides state-of-the-art, industry-leading chatbots at every step of the customer journey, from applying for a policy to paying and claims management. Lemonade recently announced that their chatbot, Maya, is the sole point of contact for policyholders to manage their insurance from inception to completion. Lemonade's chatbot, Maya, has been making headlines because of its speed and efficiency.
Maya is a world record holder for processing and paying a claim in less than 3 seconds. Lemonade is a great example of how an AI-driven chatbot can completely transform and simplify the insurance process, and with that transformation, compel insurance companies to reduce the time it takes to resolve a claim. By automating nearly every interaction that a customer will have, Lemonade has created a chatbot that captures the future of insurance fast, efficiently, and with the customer as the focal point.
- Maya's smiling avatar and warm, friendly voice create a welcoming and positive user experience consistent with Lemonade's brand.
- Maya can assist users in filing claims and walking them through the necessary claims process.
- Maya may also sell complementary insurance products and services during the quote.
How to create an insurance chatbot?
At Copilot.live, creating your insurance chatbot will only take four easy steps: visit the website and sign up for free, give your chatbot a name and customize it, train your insurance chatbot, and finally test and deploy your insurance chatbot.
Though this is a gist of how you can build your insurance chatbot. However, we have a detailed and elaborate blog wherein we have discussed the steps-wise process to build an insurance chatbot for your understanding. And, if you still have queries after that, feel free to call us, we are just a call or a click away!
Conclusion
While insurance chatbots can change the way you think about customer engagement, workflow automation, and streamlining various processes such as claims processing or policy management, however you interpret the benefits of insurance chatbots, you do need the proper support structures in place for implementation and continued effective use.
Copilot.live offers you the means to help implement insurance chatbots into your business and also helps enable your employees and your customers to use the capability of this technology effectively.
In real-time, you can help your clients enhance chatbot capabilities to offer personalized guidance, increase employee productivity, and boost customer satisfaction with Copilot.live.
