Insurance Chatbot - The Complete Guide

Post by
Sten Koobas
July 4, 2021
Insurance Chatbot - The Complete Guide

1. Why Use An Insurance Chatbot?

The insurance business is frequently associated with ancient procedures, excessive paperwork, and complicated negotiations. So, how are AI chatbots affecting the insurance industry?

You might be forgiven for believing that there isn't much opportunity in the industry for digital change. No industry, however, is immune to the urge to innovate. Those that fail to ride the tide of innovation and create new market norms may find themselves fighting for existence. Customer expectations have shifted the way firms operate in a variety of industries. Companies are becoming more competitive, and customers now have more alternatives than ever before. New customers who are digital natives and have high expectations when it comes to how a business handles them have emerged as a result of generational shifts. These expectations should not be underestimated.

Furthermore, Covid-19 has emphasized the need of providing competent customer service to clients who are restricted at home, as well as overcoming the problem of being unable to reach personnel. Support centers are a common solution for catering to client concerns. These, on the other hand, are not only costly, but also nearly obsolete because staff cannot be reached to answer calls. Furthermore, the sheer volume of client demands requires a scalable customer service that can respond to these needs 24 hours a day, seven days a week, in many languages and through numerous digital platforms, while ensuring customized interactions. These requests are not unreasonable. Conversational AI is the answer to these needs, and it already exists.

2. How Can Insurance Companies Benefit From Chatbots?

Many chatbots are inconvenient because they can only respond to frequently asked questions and frequently stall when a conversation drifts somewhat out of context. The finest insurance chatbots would be able to have a natural-language conversation with the consumer and guide them through the process, offering personalized suggestions to decrease the estimate and leading them from start to finish.

Advanced conversational AI chatbots for insurance can provide omnichannel, round-the-clock, and multilingual support, to name a few obvious advantages. They can also help to deliver unique, high-quality customer experiences.

Many insurance companies have mobile apps to help their customers, but they are limited. Customers have been unable to continue conversations across several channels by switching, for example, from their mobile phone to their smart home device, because these apps can usually only be accessed via one or two channels.

In addition, many mobile apps do not give end-to-end assistance. To finish their operations, users must inevitably go to a website, where it can be difficult to obtain the exact information a client requires, or a contact center, where long lines, time constraints, and language barriers can be a major hindrance. This is why AI chatbots in insurance have shown to be the most effective ways to improve user experience while lowering operational expenses. Chatbots help clients manage their insurance claims quickly and easily, while also acting as a listening tool that delivers meaningful data into customer behavior and preferences.

This information enables insurance companies to provide customised services and better quotations that are tailored to the specific needs of each client. The lower the danger of human mistake and the higher the savings in operating costs, the more efficient customer service is.

3. Chatbot Use Cases In Insurance Industry

3.1 Improve Customer Service

The majority of clients purchase insurance because they know they need it but do not necessarily want it. Insurance companies, on the other hand, must be prepared to support clients in completing end-to-end seamless operations in a conversational and secure manner, so that making changes is not seen as an additional burden.

3.2 Cross-Sell And Provide Personalized Advice

Customer insights are most valuable when they can be leveraged to deliver better prices and guidance on quotas and insurance claims. Chatbots can provide tailored recommendations by keeping track of consumer behavior and habits.

3.3 Prevent Fraud

Insurance companies must protect the privacy and security of their customers' personal information. Chatbots are effective at monitoring and identifying symptoms of fraud, and they can notify both the insurer and the customer.

3.4 Manage Internal Operations

By using automation and speeding up repetitive tasks, staff can focus on further developing their skills or resolving more complex back-office operations.

4. The Most Important Features Of An Insurance Chatbot

Many organizations have implemented insurance chatbots, but not all of them are up to standard. They have limited functionality and might be time consuming to use. Customers still need to speak with a real agent in the end.

The best virtual assistants give guidance and go above and beyond what a FAQ chatbot can do. To do so, they must understand what customers want, completely comprehend the services provided by the company, and be able to learn from real data in order to communicate with customers and engage in human-like behavior.

They must possess the following qualities:

4.1 Conversational

The most natural mode of human communication is speech. It can be done in a variety of languages, both formally and informally, and these differences must be taken into account when humans and bots communicate.

There should be no reason why a chatbot can't understand the statement "my son broke my window" if a damage claim is being made. Virtual assistants must be able to understand the context in which they are used. A chatbot should be able to grasp it if an insurance advisor can.

4.2 Transactional 

A chatbot that is unable to perform operations is of little utility. When we speak with an insurance advisor, we want actions to be taken, quotas to be supplied, claims to be signed, and accounts to be opened.

A virtual assistant must be able to carry out the same tasks. They can accomplish so by using Robotic Process Automation to integrate with the company's back-office systems (RPA).

Because not all technologies on the market make use of these sophisticated integrations, it's critical to look for chatbot platforms that are simple to link with external and internal systems.

4.3 Prevent Fraud

Insurance companies must protect the privacy and security of their customers' personal information. Chatbots are effective at monitoring and identifying symptoms of fraud, and they can notify both the insurer and the customer.

4.4 Reliable

Insurance firms must be reliable to earn the trust of their customers. This transcends to the technologies they use. Errors in interpretation or transactions are unacceptable and can lead to the loss of a client. Conversational AI chatbots must be able to prove that they can be trusted.

4.5 Multi-Channel

Chatbots can be used in a variety of ways. Customers can now use their preferred channel to complete transactions, whether it's a phone call, a mobile app, a smart home device, or a messaging network like WhatsApp or Skype. The finest conversational AI platforms should be able to port apps across numerous platforms.

4.6 Security

As a result, conversational data must be included into a centralized authentication system and kept private from third parties.

Regulations such as GDPR (General Data Protection Regulation) must also be followed, allowing dialogues to be consulted, extracted, anonymized, encrypted, or deleted as needed.

5. Best Insurance Chatbot Platforms

5.1 AlphaChat

AlphaChat is a no-code end-to-end Conversational AI platform allowing anyone to build Natural Language Understanding insurance chatbots. The platform also offers advanced features for enterprise customers such as authentication, SSO, APIs, agent co-pilot mode and intelligent routing.

Top Features:

  • Built-in Natural Language Understanding for training Virtual Assistants
  • Live chat and seamless handover to agents
  • Authentication and APIs
  • Polyglot mode for multilingual support

What’s special about this tool: Standard Package offers everything from building your own AI. insights into customer conversations (topics discussed, customer satisfaction) and statistics on AI value performance. Enables to train the NLU chatbot in one language and have it automatically chat in any language. SLAs and AlphaOS with DIY custom code writing available for enterprise accounts. 

Pricing: 10-day free trial. Paid plans from €399/month. 

Try out AlphaChat for free.

5.2 Bold360

Bold360 is a chatbot software company offering live chat and messaging automation for customer support.

Top Features:

  • Omni-channel engagement
  • Proactive AI
  • Integrations
  • Intelligent routing

What’s special about this tool: Bold360 offers comprehensive tools for automating live chat for agents and for customers.

Pricing: Price available on request.

5.3 Chatfuel

Chatfuel is a no-code chatbot development platform for Facebook, Instagram and Messenger for increasing sales, reducing cost and automating support for insurance companies. One of the top chatbot companies in terms of popularity.

Top Features:

  • Lead qualification
  • Clickable menus
  • Integration to Facebook
  • A/B testing

What’s special about this tool: Chatfuel works with Facebook products and allows to create insurance chatbots to engage with users on their platforms.

Pricing: Free plan limited to 50 users, paid plans from $15/month.

5.4 SnapEngage

SnapEngage is an insurance chatbot tool for building customer service and engagement automation through Answer and Guide Bot modules.

Top Features:

  • CRM and help desk integrations
  • Live chat and chatbots
  • Omni-channel engagement
  • WeChat integration

What’s special about this tool: SnapEngage offers Twitter, Facebook Messenger, SMS and WeChat integrations.

Pricing: Paid plans from €15/user/month (plus platform fee, billed annually).

5.5 Zendesk Answer Bot

Zendesk Answer Bot is a platform from the contact center software provider that allows building chatbots for insurance with the Flow Builder.

Top Features:

  • Bot collects information for agents
  • Works with a knowledge base
  • 3rd party chatbot integrations
  • Bot marketplace

What’s special about this tool: Zendesk Answer Bot is an insurance chatbot tool for building a quick bot to answer common questions and escalate complex queries to the agents. 

Pricing: Paid plans from €49/agent/month includes up to 50 AI-powered automated answers.

5.6 LivePerson

LivePerson is an AI chat and chatbot customer service company that provides chatbot building tools for automating insurance customer service.

Top Features:

  • Train Virtual Assistants
  • Template for insurance industry
  • Bot-to-agent routing
  • Conversation analytics

What’s special about this tool: LivePerson gives various tools for automating chat end-to-end from chatbots to intelligent routing to live agents.

Pricing: Price available on request.

5.7 MobileMonkey

MobileMonkey is a chatbot platform for marketing, sales and customer support for Facebook, SMS and websites.

Top Features:

  • Omnichannel
  • Facebook integration
  • Lead generation
  • Templates

What’s special about this tool: MobileMonkey integrates with various channels and has extensive features suitable for marketing agencies.

Pricing: Free plan available, paid plans from $21/month.

5.8 Drift

Drift is an insurance chatbot builder that helps companies capture leads from your website and convert them to paying customers. 

Top Features:

  • Capture leads
  • Agent escalation
  • Visitor intelligence
  • Integrations

What’s special about this tool: Drift is focused on conversational sales and marketing through automation, chat and video chat.

Pricing: Price available on request.

5.9 Dialogflow

Dialogflow is a Natural Language Understanding engine from Google to connect with your insurance chatbot.

Top Features:

  • Visual flow builder
  • Omnichannel deployment
  • Voice integrations
  • Analytics

What’s special about this tool: Dialogflow NLU can be integrated in several 3rd party Conversational AI platforms. 

Pricing: Essentials edition $0.002/request, CX edition $20 per 100 chat sessions.

5.10 Freshchat

Freshchat is an insurance chatbot product from the freshworks family that also provides CRM and customer support software. 

Top Features:

  • Live chat
  • Train on CRM data
  • Book meetings
  • Gather leads

What’s special about this tool: Freshchat operates within the freshworks family of products that provide a variety of features.

Pricing: Paid plans starting from €69/month

6. Summary

Insurance chatbots can improve consumer loyalty and brand engagement while also cutting expenses and generating income. This can only happen if they interact with customers naturally and in the manner that they desire.As a result, selecting the best development bot platform to deliver excellent conversational characteristics that are both dependable and scalable is critical for insurance businesses.

If you are looking for AI chatbots for your customer service, then feel free to sign-up for an account with In just a few minutes you can get your own natural language understanding AI chatbot that you can connect with your website.