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How the insurance industry has reinvented itself post pandemic

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Rohit Java

Caribou Honig, co-founder of QED investors once said, “It’s hard for big carriers to innovate as they have so much to contend with already —industry headwinds, legacy issues. But they need to be in the game, right now.In today’s scenario, heavy reliance on manual operations and legacy work-flows make overcoming these challenges rather difficult and the insurance industry is embracing technology with great gusto. 


 

 

The Challenges 

By 2023, Juniper Research predicts that chatbots will have a disruptive impact on the insurance sector by effecting savings of close to $1.3B. However, with brands embracing automation and recognising the value of data, this exercise has now become easier. What still remains a challenge though, are the data silos. This data today is exchanged and passed along between systems and personas in the form of emails, SMSes, PDFs, call centres, online portals and posts. Insurance companies today fare grappling with the effects of the pandemic with additional challenges, chief among them being:

 

  • Competition from other industry players
    • Neo-Insurers today have an edge over every aspect of the conventional insurer.
  • Customer Expectations
    • 24/7 support is the norm and insurance companies have to be up to the expected levels of service.
  • Margins’ Pressures
    • Meeting sales targets and margins over scaling operations is a challenge without a compromise in the level of consumer satisfaction.
  • Scalability
    • With easier lead generation from bots, come scalability issues which need to be handled at the grassroots level.
  • Data reservoirs with mixed data formats
    • Mixed and muddled data is hard to separate and maintain.

 

The Solution

But what if we could speak to all these systems, collate all data points and bring these insurance touchpoints to a conversational solution? What if something as complex as raising a claim request, could be achieved in a couple of clicks on your channel of preference for over thousands of users at the same time? A solution, which truly could be referred to as OmniChannel and can pave the way for digitization? 

Enter bots. With the ability to speak to different systems of records and exchange packets to create a super data set, employ the inbuilt NLP (Natural Language Processing) layer, and get governed by the laws stated; these bots can be the light bearer of automation today across industries. 

Recently, brands have started recognising the power of chatbots and voicebots, and the ease of use they bring to the table. Bots today are functioning and empowering users throughout the customer lifecycle. Starting all the way from lead generation, up-selling/cross-selling, farming & closure, to servicing and enhancing the user experience across a myriad of industries

Data today has empowered the humble chatbot to drive e-nach, automate and regulate premium payments, among other services, offering a seamless solution to both the brand and the end user. The bot leverages the data parameters that were stored by the brand, to pre-fill e-forms and enable the process within just a few clicks for the user. This is a huge leap compared to the rather recent web-forms, and it’s an entire paradigm shift in comparison to the physical queues at banks. 

At Yellow.ai, we have had phenomenal success with Insurance companies being able to bring their operational costs down, increase the adoption of automation and even reduce the FTE drastically.


 

© Yellow.ai



 

Role of bots

The bots of today can assist and ease the lives of the modern user throughout their lifecycle (refer image). Here’s how-

 

Image - Typical Insurance Lifecycle

 

  • Product Exploration 

Users can identify and align personas; find suitable insurance products, whilst also addressing common FAQs, establishing and increasing customer confidence. Also helps in lead generation, premiums calculation, extent of cover and ultimately choosing the product most suitable for their needs.

  • Premium Payments

Enables users to identify policies, validate themselves and securely make payments towards their premiums all within a few clicks without any wait time with need-based live agent transfer and a possibility to set up e-Nach.

  • Smart Claims Handler

Reduces handling and cycle time of the claims processes to improve customer satisfaction by creating a condition-based solution, which will validate and verify the incoming request with inbuilt rule-based fraud detection capabilities. 

  • Fraud Prevention

Validates the user credentials through 2-step verification and SMS OTPs and eliminates any possible human errors as well making the entire system safe and secure.

  • Customer Service 

Leverages existing information and knowledge base to cater to customers queries and resolve challenges by empowering them with access to their data.

 

 

  • Multi-linguality

Bot can reduce up to 80% of the operational costs as substantiated by a major client. They have higher efficiency as opposed to live agents thanks to fatigue not being an issue and a 5x scaling capacity for context-based intent resolution.

 

Main pain points today in Insurance today

  • Lack of digitisation - brands still function in a very conventional manner and digitisation was only fast forwarded thanks to Covid
  • Self Service
  • Autopay penetration (eNach)
  • Rising Customer expectations
  • Underwriting

 

How are we solving these

  • Leveraging multiple of channels of engagement whilst establishing a 360 degree touchpoint
  • Meeting the expectations - when, where, why of the customer
  • Leveraging Data to take informed decisions


 

Additionally, the bot today has found a home within enterprises, helping them ease the pressure off of close-knit customer support teams, enabling them to render their services at a larger scale. Employees today fall back on these bots to generate quotations, evaluate parameters and be the smart underwriting solution they were looking for all this while. The rules can govern if underwriting today is automated or hybrid, on a case to case basis. 

 

In today’s fast-paced digitally-driven environment, consumers yearn for :

 

  • Better Engagement
  • Ease of Use
  • Instant Gratification
  • 24x7 Service
  • Ability to self serve

 

The end goal for every chatbot today is to come through on these, in as human as personalized and as native form as ever, something that holds true for a top insurance agent.

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Rohit Java

A car enthusiast by heart, Rohit is a success-cum-project manager by experience and has worked with many of Yellow.ai's top clients. In his spare time, he can be found driving into oblivion or lazing around in a beach with Brody, his beagle by his side.

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