How conversational AI is transforming the Insurance industry

This article was originally published in the Neurotech Africa blog post

Everyday technology continues to evolve from different angles, in this blog post I will explain through leveraging the power of conversational AI can make a difference in the insurance industry.

About the Insurance sector:

The insurance sector is made up of companies that offer risk management in the form of insurance contracts. The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

According to the 2020 Tanzania insurance report, “the Tanzania insurance sector is growing steadily, with 30 insurance companies and 112 insurance brokers currently active in the market (2014 TIRA data)”.

Through the statistics you can realize that the contribution of insurance to the National Gross Domestic Product remains very limited, paving the way for plenty of room for further growth.

Digital transformation in the Insurance industry

Digital transformation varies across multiple industries, but the worth truth is that 70% of digital transformation fails in the sense that they don’t meet their objectives, this is based on studies from International Data Group. The fun fact is that a company or an industry can’t be fully digital transformed at once but better be staged. May begin with system operational to employees to be aware of what transformation is capable of and how their contribution can improve the whole process of adopting digital transformation.

Source: tibco.com

The insurance industry is among the oldest financial businesses in the world. In fact, the industry tends to stay traditional and is slow to change, however, new technology trends have been impacting the insurance marketplace, creating extreme competition. The immense experience was during Covid-19 when insurance companies found themselves in the middle of the storm. A couple of times operations were done remotely and at the same time, they were fielding calls about changing coverage. Answering questions about business interruption policies and continuing to pay claims for life, health, and disability insurance.

The Need of accelerating digital transformation in the insurance industry

Digital transformation will help the insurance industry to solve some challenges and improve its business strategies. Let me just highlight some of the potentials of accelerating digital transformations:-

• Customer experience: spend enough time getting to know the customer and figuring out what it is they want and how to respond to it. This bit of the process should occur throughout the customer lifecycle, from prospecting until the moment of withdrawal.
• Value generation through data: data-driven is essential for decision-making in insurance companies. Understanding how you want to use data in a way that you can create value is important, and this experience can be influenced by executives to normal employees. By doing that, it will be possible to determine the various uses of data.
• Ecosystem development: the process of redesigning insurance strategies involves a couple of tasks like measuring, controlling, and assessing risks all of these are being transformed by the digital environment, and the leading insurance market leaders are aware of this. Understanding the ecosystem to know how strategies can be applied to regions or branches depending on the scenarios rather than using them because perform well around the city or elsewhere.
• Margin management: the digital transformation of the insurance business can only do one of two things: either reduce costs or increase them. Either way, it hinges on making the right decisions and then adopting new technologies to create business models based on those decisions
• Multichannel Strategy: using several channels means that your brand will utilize two or more marketing methods to share your content and messaging across several platforms. In simple terms, a multichannel strategy makes it easier for consumers to complete their sale transactions and interact with brands through the most suitable platforms.

Conversational AI use-case in the insurance industry

• Manage internal operations: through automation and speeding up repetitive tasks, employees can focus on more complicated tasks and further on developing their skills to improve operations.
• Customer awareness and education: conversation AI can bring closer customer awareness and education on how the process works, benefits, availability of offers, and compare as well as suggest the optimal policy, from multiple carriers, based on the customer’s profile and inputs. But also the engagement and interaction with customers, this can be through websites or social media platforms.
• Risk evaluation: leveraging conversational AI can improve the ways and processes of taking control of the data overwhelming to assess risks with high accuracy, better insights understanding, plans customizations, and make better decisions.
• Claims management: this involves claim processing and payment assistance, conversational AI can be trained to address your customer’s insurance claims and also follow up with them on the existing ones. But how about automating payment processes according to the preferences of customers.
• Customer feedback and reviews: most customers tend to share their feedback immediately after service apart from that it is rarely. Most studies suggest that customers are more likely to respond over live chat than email, and they do feel confident and well to contact the business through message rather than calls.
• Fraudulent prevention: Insurance firms must take care of customer data privacy and security. Conversational AI is efficient in monitoring and detecting warning signs of fraudulent activity and can alert both the insurer and the customer.

About Neurotech’s conversational AI solutions

Neurotech we are an AI company that builds solutions for businesses currently we do develop conversational AI for business needs which are controlled by our internal engine goes by the name Sarufi. We offer custom solutions to fit various business needs.

Why it is useful?

Our conversational ai solutions can provide seamless customer support across multiple platforms, enabling you to offer a more personalized, contextual service to customers, and you can explore more from here.  Our solutions ****are developed in such a way that can understand the contextual meaning of the interaction or conversation with targeted audiences, Our custom chatbots can be deployed on social media platforms like Whatsapp, Facebook, Instagram, and Telegram. This depends on what our customers need.

Currently, our solutions can work in two languages only Swahili and English, it can help out your business with customer support, save on labor costs and instead pay fewer support employees fair wages without being stretched to support a large staff, increase revenue and build opportunities with every customer interaction note that 😊.

Final thoughts

Is there a need of customizing customer experience in the insurance industry? Absolutely yes, innovation in the insurance industry with conversational AI in transforming the entire cycle of processes such as claims, can help to improve the awareness and the education of a large population with less cost money, and effort. Through conversational AI  will ensure faster settlements and optimized customer experiences, leading to improved risk evaluation with new technologies like Machine learning and Artificial intelligence in making appropriate decisions, ensuring personalized and customized customer services and experience.