Chatbots making headway in the insurance sector

Dan Smith - 15.09.2017

By 2020, artificial intelligence will influence 85% of customer relationships, according to Gartner.

While this might seem like a long way off, insurance companies will need to start implementing plans now or risk falling behind rivals who are keeping up with the fast-paced technological world we live in.

Chatbot AI: The future of Customer Service

According to The Future of Insurance Survey Report 2016 by Insurance Professionals, a third of those working in the sector believe that “tech capabilities and legacy systems” are slowing their business down the most.

And, as reported by Chatbot’s Life, a survey revealed that out of date technology was seen as the biggest barrier to change for insurance.

However, there are some in the sector who are leading the way when it comes to adopting technology as a means of enhancing consumer experience.

Co-op Insurance leading the line

Co-op Insurance, for example, is the UK’s first motor insurance company to trial a chatbot.

The technology, which uses a Facebook Messenger chatbot, is available 24/7 and aims to give customers a car insurance estimate within 30 seconds.

It asks consumers four questions — relating to their age, location, value of vehicle, and the driver — with multiple choice answers, and compares the information against the company’s database to calculate an average cost from people who fall within the same categories, excluding any optional extras.

Commenting on the decision to trial the technology, director of distribution and marketing for Co-op Insurance, Charles Offord, explained: “In order to keep up with changing consumer behaviours we cannot afford to shy away from digital innovation, and creating the Co-op Insurance chatbot is one of the ways in which we’re hoping to do just that.

“Customers want quick and easy access to information without compromising on customer service and we’re confident that through our chatbot we can be there for our customers at a time that best suits them and their busy lifestyles.”

Why should your brand consider using chatbot technology?

How can your insurance company utilise technology to meet consumers’ growing instant gratification needs?

Research by ushur revealed that 40% of millennials want insurance firms to use instant messaging for customer engagement. Of those who have used automated communication with a business, 88% said they would do it again based on their previous experiences.

With instant and automated messaging, you’ll be meeting their expectations, as 72% of millennials expect businesses to respond to their questions within an hour, while 30% expect answers instantaneously.

Chatbots represent just one of the latest tools that insurance companies can use to boost their digital marketing efforts. Want to make sure your strategy keeps pace with consumer behaviour? Contact Fireworx today.