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By Tim Warren on July 18, 2023

Automated Customer Service in Insurance: The Rise of Chatbots

Customer service is critical for any business; especially so in the insurance industry. Policies often require a level of support to explain and clarify for customers. Customers rely on insurance providers to provide accurate and helpful information so that they are able to make an informed decision regarding their coverage. A positive customer service experience is essential for building trust and loyalty with a customer. 

Insurance providers need to invest in customer service, both in people and technology. Many technology solutions are available to streamline customer service. Mobile apps and websites are an everyday expectation these days, while chatbot technology is quickly becoming the norm in customer service. These provide customers with answers to frequently asked questions and even the ability to claim quickly, often without needing to involve a human agent.  Chatbots work well in tandem with human agents, enabling the customer service team to better prioritise how they handle inquiries and speeding up the overall service experience.

Chatbots are uniquely beneficial in their ability to handle surges in customer traffic, something that’s especially important in the insurance industry. After a major weather event (floods, hurricanes, etc.), customers are likely to have a lot of questions and concerns. TVNZ’s Fair Go reported that one major insurer added around 350 additional staff to answer queries and help manage event-related claims and established a dedicated disaster response team.

Insurance providers with automated chat have the added capability to respond to customer inquiries in a timely manner and make sure no one is left without help, particularly during a time of crisis. Chatbots help with this significantly, as they handle hundreds or thousands of simultaneous conversations.

Customers want an immediate response. Prioritising quick response times for customer service inquiries demonstrates how companies care for their customers. Any technology that accelerates response times and leverages chatbot technology so that customers can quickly get answers to their questions is one worth considering. 

Ultimately giving customers choice about the channel they use, putting great technology there to support a response and delivering a quality experience will deliver operational and financial benefits. This technology is here now, the option is there for providers to enable this for their customers.

Published by Tim Warren July 18, 2023