The Future chatbots And Their Importance In The Insurance Sector



Chatbots have become, at present, an integral part of corporate initiatives that are busy updating their business and developing their digital customer experience, in conjunction with the increase in the popularity of messaging platforms, and the massive and rapid development in the fields of artificial intelligence and machine learning alike. 

According to some estimates, chatbots are expected to have more than $ 8 billion in global revenue in 2022. The characteristics and features of a chatbot in customer service, around the clock, seven days a week, with less time and higher speed, increase Customer satisfaction, and meeting their expectations.

In spite of this, the interaction of the chatbot remains automatic, and sometimes less or less than the normal human conversation, which may contribute to the loss of business, if companies do not plan and implement these programs very carefully, to overcome their strategic and tactical challenges.

What is a chatbot - a chatbot?

It is an artificial intelligence (AI) program that can simulate a voice or text chat, with a human user in a natural language, when customers use some websites, smartphone applications, or even over the phone. Chatbots often treat conversations as if it were a game of tennis: talk and respond, speak, and respond.

Chatbots interact with customers, every day of the week, and are not limited to a specific time or place. This makes using them or including them, useful and attractive to companies, especially those that do not have the workforce, or sufficient material resources, to make employees work around the clock. 

How does a chatbot work?

The chatbot works through machine learning, as it has an artificial neural network, inspired by the neural ganglia of the human brain. It is also programmed for self-learning and receiving new conversations and words. In fact, when a robot receives new voice or text conversations, the number, and accuracy of its answers to inquiries increases.

Facebook, for example, has a machine-learning robot, which works to create platforms for companies, with the aim of interacting with customers, through the Facebook Messenger application.

The importance of chatbots in the insurance sector

With so many areas of customer service available in insurance operations, chatbots play an important role across the insurance value chain. Including pre-purchase, on-purchase, customer service, and background processes.

This is in order to facilitate complex insurance transfers, which take the nature of manual filling of detailed forms and questionnaires, in addition to time-consuming, verification of basic information, staff shortages, and cumbersome customer service. That is why insurance companies, when adopting AI capabilities, can achieve broad-spectrum customer satisfaction.

Nowadays, chatbots have thrived several factors. Including the emergence of messaging applications, the widespread application of the ecosystem, developments in artificial intelligence and related cognitive technologies, the fascination with the use of conversational user interfaces, and the wider use of automation.

Why do users prefer chatbots?

It is clear that users prefer chatbots, due to certain interactions. One study indicated that 69% of users prefer chatbots, due to receiving instant responses. The same percentage reported that they use chatbots for customer service inquiries. While 22% of users expressed confidence in the recommendations of chatbots to buy products. 


Companies see chatbots as not only a way to reduce operational costs, but also a way to improve the customer experience. In another study, more than a third of startup founders said chatbots and virtual agents would be at the top of the list of AI users over the next five years. 

Are Chatbots Changing the Insurance Industry?

Over the next decade, the evolution of chatbot technology will re-imagine the insurance industry completely and comprehensively. Consider the following scenario:

Ahmed has a meeting outside town. His personal digital assistant books a ticket for his trip, comparing travel insurance quotes. He teams up with the travel insurance company's chatbot, chooses the rate, and upon confirmation, makes the payment.

Then he books a car for Ahmed to drive as soon as he arrives in Medina. It was also done by collaborating with the chatbot of the auto insurance company, which offered him its quotes.

As soon as the plane landed, Ahmed began driving. Ahmed is involved in a collision by another car. As soon as Ahmed's car stops driving, he receives a message from the insurance company's automated chatbot And he provides him with the necessary instructions, such as taking some pictures of the rear bumper and the area surrounding the accident. As soon as Ahmed returns to the driver’s seat, his personal digital assistant informs him of the damage and then assures him of his approval. And because the car can still be driven and walkable, Ahmed arrives at the meeting at the right time, without worrying about the claim. 

This scenario might seem far fetched, or a fantasy. But the use of chatbots is becoming more and more popular in different and varied areas of business, especially with regard to customer service.

Creating an effective chatbot

Although chatbots are important and necessary for insurance companies, not all are equal. There are features and functions that enable these systems to have a significant impact on both operational costs and customer experience. This includes conversation maturity, integration with back-end systems, emotional intelligence, self-inference, consumption of structured/unstructured data, seamless experience across channels. In addition, customers and companies always expect intelligent and intuitive conversations from chatbots, to stick to their context, and in comfortable language, across multiple channels. They want a very natural conversation.

The most important characteristic of successful chatbots


1- Communication

That is the ability of a chatbot to communicate effectively with the user. It also defines the mode in which the user can communicate with the robot, is it text or voice? It can set different characteristics of communication, including language/status, types of communication, channels, moods, and more.



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