conversational AI

Bridging the Knowledge Gap in Insurance with Conversational AI

Insurance providers need conversational AI to close the customer knowledge gap and improve business success.

While a necessity, insurance isn't something that most customers are excited about purchasing. Confusing jargon and endless options don't make the buying experience positive, leading customers to make uninformed decisions and switch providers often.

These challenges stem from customer perceptions of a knowledge gap, which ultimately impedes sales and business success. For insurance providers to close this gap and delight customers, a new solution is needed–conversational AI. 

What Is The Knowledge Gap in Insurance?

Most people are insurance policyholders, so they have a basic understanding of insurance. However, people tend to get confused about the complexities, such as choosing and updating policies, making claims, and deciphering clauses. Many customers perceive insurance to be a complex maze of policy options, and 53% of them don't feel they're getting the most out of the insurance options available. 54% don't even understand the full scope of their current health insurance. 

This dilemma is known as the "knowledge gap" in insurance, where policyholders don't fully understand their own insurance policies. Without a clear understanding of the insurance process, customers are frustrated with their provider and their policies. As such, they may be hesitant to buy–making the knowledge gap a problem for providers. 

Ultimately, the knowledge gap creates a plethora of challenges for insurance companies, including:

  • Low customer satisfaction
  • High customer turnover
  • Declining sales
  • Failure to upsell customers
  • Ineffective application of policies

Clearly, this knowledge gap impacts more than just the customers who aren't maximizing the value of their insurance policies. But what can providers do to close this gap? 

Conversational AI helps insurance providers educate their customers–and more. We've all heard that "knowledge is power," and it's more than true in this case. With a thorough understanding of their insurance options, customers will not only maximize the value of their policies but be more inclined to upgrade their policies and remain loyal customers. Now, let's dive in. 

Conversational AI Brings Transparency to Insurance

It isn't feasible for insurance providers to provide each customer with an in-depth understanding of their policies, even if they want to. The time and resources necessary to achieve this would be astronomical–unless conversational AI enters the picture. Conversational AI provides both providers and customers with a database of knowledge and virtual AI assistants. 

When customers have questions about their policy, they can ask the conversational AI agent. Using components of Machine Learning (ML), Natural Language Processing (NLP), and integration with your internal enterprise systems and applications, the virtual AI assistant will respond with accurate and intuitive answers. Between access to the customer's file and the company's database, the conversational AI assistant can cater responses specifically to the customer. 

With this solution, customers can get the personalized answers they need without spending hours in an office or on the phone with their insurance provider. Plus, as conversational AI isn't limited by business hours, customers can get these answers anytime. 

Whether a first-time customer is looking to open an account or a returning customer looking is to understand and upgrade their policy, conversational AI will guide them in the right direction. With a deeper understanding of their insurance options, customers are significantly more likely to be happy with their insurance and continue to upgrade and buy.

While some providers may worry that their customers will miss human interactions, this isn't the case. 44% of customers feel uncomfortable asking representatives about health insurance enrollment, and 47% would rather call their friends or family for help when enrolling in insurance. 

Customers would rather not get information or receive potentially inaccurate information than seek their provider for assistance. But, with conversational AI, customers will be more inclined to seek the answers they need because it's convenient and stress-free. As ​​62% of customers say, they don't usually change their health insurance selections from year to year because it's too stressful. Reducing this stress could introduce significant sales opportunities. 

By closing the knowledge gap in insurance with conversational AI, customers will be more likely to be happy with their insurance policy, upgrade their policy, and stay loyal to your business–but that's not all.

How Will Your Insurance Business Benefit From Conversational AI?

Improve CX in Insurance

While educating insurance policyholders is a significant step towards happier customers and improved sales, that alone can't guarantee the success of your business. The customer experience (CX) is a major component of any business, particularly in insurance, where products significantly impact customers' lives. Before we dive in, consider these statistics from TechJury:

  • 73% of customers agree that CX encourages buying decisions
  • 86% are willing to pay more for a better CX
  • Businesses with a focus on improving CX see an 80% increase in revenue

Clearly, customer service matters–and customers are paying attention. Fortunately, this is just another way in which conversational AI thrives. As mentioned, customers prefer options other than a human representative. With conversational AI, customers can get the support they need 24/7 without entering lengthy conversations with a human representative. 

Plus, with NLP and sentiment analysis capabilities, conversational AI responds intuitively with the ability to recognize the conversational tone. As such, it can react accordingly, ensuring customer satisfaction. 

That said, should human intervention be necessary, conversational AI can transfer customers to providers and supply all relevant information for successful customer interactions



Expedite Insurance Processes

In addition to making customers happier, conversational AI can significantly boost employee satisfaction and productivity by automating countless tasks. 

Intake New Business Quotes

When insurance brokers submit new business quotes, they often lack the information to do so effectively, leading to inaccurate or insufficient quotes. But, with conversational AI, brokers can gain all the necessary information. The virtual AI assistant will automatically collect and upload data for the quote to be reviewed by the broker. As a result, brokers can accelerate the quoting process and improve accuracy. 

Seamless Claim Processing

Improving claim processing is a priority for most insurance firms but can be challenging. This process is often time-consuming as it requires receipts and invoices, both of which must be processed. Fortunately, conversational AI can accelerate this by automatically gathering these resources. Your conversational AI assistant will collect and analyze these materials, at your place, for claim processing, ensuring speed and accuracy. 

Improve Data Quality

Fact-checking is a crucial component of quality control in insurance, yet it's time-consuming and susceptible to human error. Conversational AI can scan all documents and interactions to ensure accurate fact usage, proper grammar, and correct documentation. This significantly speeds up repetitive yet essential tasks and eliminates the risk of human error in important documents and processes. 

Prevent Data Lapses

Each insurance policy has a coverage period, and brokers must be aware of the lapses between these periods. For customers and brokers, avoiding these lapses and maintaining continuous coverage is beneficial, but that requires consistent status monitoring. Conversational AI can perform 24/7 monitoring to ensure that policy lapses don't occur, saving brokers from performing tedious work and keeping customers insured. 

Conversational AI has the potential to be invaluable in the insurance industry. With a wealth of knowledge, automation capabilities, and intuitive language processing, conversational AI can close the knowledge gap in policyholders and improve countless processes for brokers.

Interested in learning more? Download our free whitepaper on How Can Insurers Rethink the Customer Experience? 

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