What is an insurance chatbot?

Insurance chatbots are digital applications that are scripted to handle customer inquiries through automated conversations. These bots can operate on any text-based interface, including websites, apps, and messaging applications, programmed to provide instantaneous responses to common inquiries.

While insurance chatbots can certainly help in thinning out the volume of calls for basic things like policy updates, reviews, claims, renewal, and overall coverage inquiries, their answers are scripted and efficient only in handling straightforward requests. They can even be frustrating for customers who are dealing with more complex matters, adding even more hours to their experience before they eventually request turnover to an agent.

What is an insurance virtual assistant?

An insurance virtual assistant is similar to an insurance chatbot in functionality, but the key difference is that a virtual assistant is AI-powered and uses either rule-based programming or natural language processing (NLP) to understand user input and deliver relevant information.

Insurance virtual assistants aren’t scripted like insurance chatbots; instead, they’re designed to offer human-like interactions based on NLP, learning from training and interactions to deliver a better understanding of customer needs.

What are the pros & cons of an insurance virtual assistant over a chatbot?

Pros:

• Handles complex queries: Unlike chatbots, virtual assistants can analyze the context of a customer’s question and provide tailored solutions, such as quote requests, claims processing updates, and even advice, all while reducing the need for human intervention.

• Greater automation capabilities: Beyond just answering questions, virtual assistants can process transactions, assist in claims filing, and recommend personalized policies based on customer data.

• More human-like interactions: With NLP, virtual assistants can better understand, context, tone, and intent, which makes interactions more natural and reduce miscommunications, reducing process frustration for customers.

• Higher customer satisfaction: By delivering relevant, nuanced responses and reducing the need for escalation to human agents, virtual assistants improve the overall customer experience.

• Continuous learning and adaptation: AI-driven virtual assistants can improve over time by learning from interactions to refine their responses and better address customer needs. This means investing in a tool that perpetually improves.

Cons:

• Higher implementation costs: Because virtual assistants require AI training, data integration, and NLP capabilities, they often involve a greater initial investment, but they can lead to significant cost savings on admin tasks over time so that your employees can focus on high value efforts instead.

• Requires data quality and maintenance: To function effectively, virtual assistants depend on accurate and regularly updated data, requiring ongoing monitoring and optimization, but this ensures the system remains reliable and up to date, especially when it comes to keeping up with new insurance regulations. You wouldn’t want your tools to leave you open to noncompliance.

• Potential misinterpretation risks: While virtual assistants are more advanced than chatbots, they still have limitations and may misinterpret highly complex or ambiguous queries, requiring human support in some cases. This means that at the end of the day, a human agent always has the opportunity to intervene and engage directly with their client.

Statistics

While not all insurance virtual assistants are equal, Olivo, Koios’s insurance platform, has been on the market for several years and seen some unique successes. Here are some primary statistics we’ve gathered based on customer data:

• The average progression rate in the quote process for Olivo is 68%. This means that clients using the Olivo see reduced drop-off rates in their customer journeys.

• 55% of clients complete Olivo’s long form quotation form to receive auto quotes VS the industry benchmark of 15-30%. That’s an increase of up to 266% compared to industry standards. OlivoOlivo provides more chances of converting form completion to leads.

• Only 4-5% of Olivo clients request to transfer to a live agent.

Chatbots are a start, but here’s the rub:

Insurance chatbots are already widespread, and they provide a first step in automating customer interactions. In an industry where service is wanted on demand, quick answers, 24/7 availability, and fluid interactions is a must. However, the limitations of chatbots—including difficulties in handling complex inquiries and a lack of personalization—can lead to frustration. AI in the insurance industry, like any other tool, needs to be optimized and used correctly to fully benefit your business. Without proper integration and understanding, it can leave you behind as competitors leverage its potential.

AI-powered insurance virtual assistants take automation to the next level. With NLP, machine learning, and sentiment analysis, your business can reduce call center strain, improve customer satisfaction, and more.

Introducing Olivo