All over the globe, AI powered applications are evolving and growing at an astonishing pace and the value that they are able to deliver in most industries is truly remarkable. After all, any technology that can offer reduction in cost, better data management, and increased customer satisfaction is already on its way to creating a buzz across industries.
Customer experience during the claims process plays a vital role in increasing customer retention. According to J.D. Power 2019 U.S. Property Claims Satisfaction Study, many insurers are falling short on managing customer expectation during servicing and settlement. Couple of key findings of the study are “Many insurers miss the mark on customer communications” and “Setting accurate claim length expectations is critical”
With the increase in use of AI enabled virtual assistants (VAs) or Virtual Chat Assistants (VCAs) , the insurance industry is looking to offer a hassle-free and more pleasant experience to its customers. VAs having conversational workflows are becoming valuable communication assets for insurance industry. The VAs are created to respond to queries posed by customers without requiring human assistance. VAs use deep learning algorithms and Natural Language Processing to decipher the significance of “intent” of the end user’s questions and the “context” of the conversation. The derived interaction context, based on training phrases , is used to enable users to access their claims data in near real-time and provide claims settlement process updates along with the anticipated timelines within minutes. VAs are already speeding up backend processes in departments like claims settlement, leading to savings and increase in customer satisfaction.
Better customer satisfaction scores with chatbots or VCAs
Chatbots are slated to be integrated in 25 percent of customer service and support operations by 2020, as compared to 2 percent participation in 2017. Why? Because it’s working! Gartner figures further add that with the use of VCAs of chatbots, companies are experiencing up to 70 percent reduction in inquiries via other channels (voice calls, email, and chats, along with increase in customer satisfaction ratings. One of the research claims that as many as 80 percent of the surveyed customers are satisfied with the chatbot interactions.
The Advantage: Better customer satisfaction ratings in insurance can directly translate a significant increase customer retention numbers. As insurance customers switch their carriers frequently in search of better experience and rates, delivering a superior service experience can make huge contribution toward gaining market share and increasing revenue.
With AI enabled solutions like VAs, it is possible to deliver impactful and measurable outcomes, such as reducing the cost burden of claims settlement processes and increasing customer retention rates. Shaving time off the claims settlement process and reducing the resources required to settle claims would automatically affect the bottom line positively, give the insurance carrier an edge over its competition, and help them retain their customers and market share.