Use Cases of Chatbots in the Insurance Industry

Yellow Messenger


Insurance offices are no sinecure. There are a lot of responsibilities to handle daily, from the marketing insurance policy to process insurance claims. But the job, like many other customer-centric service providers, often gets tedious. Many times, the claims are not right, or there are just some trivial questions to be answered and what not. With the adaptation of customer engagement and customer experience automation aided by conversational ai, these things can be handled better.

Conversational AI-powered insurance Chatbots are already going everywhere, especially in an environment where customer services need to be improved. Chatbots have implored the market, it is the first mode of contact now to any insurance company. Bajaj Finance has worked with Yellow Messenger extensively to automate their business processes across most of their departments and it has immensely helped them to improve their customer experience. WhatsApp chatbot and website bots are gaining popularity like never before.

With the onset of the pandemic, most customer support systems closed down and the need for a conversational AI engagement solution for customer support was felt by most of the enterprises as well as by insurance companies. Conversational chatbot has successfully replaced customer support to a great extent and in the past 2 years, the NLP engine and intent analysis of chatbot has advanced to a level of providing almost human conversation experience.

According to Gartner, Conversational AI use cases:

conversational ai use cases by type

While industries such as banking or retail are likely to have felt more pressures to transform during the past few years, insurers are gaining more digital maturity. And so are the customer’s demands from the company.

And why not?

Buying Insurance like doing a major purchase is a critical decision, and customers before investing in a good insurance plan, love to research. Now imagine a healthcare chatbot that would suggest the best insurance plans for you by analyzing your information and the best insurance premier available in the market right in your preferred messaging platform, let's say WhatsApp business. Or you could message your agency directly from the Google search page through Google Business Messaging?
Does it sound too good to be true?

Well, it is possible! With the enablement of conversational chatbots in consumer-preferred messaging platforms like WhatsApp or on the website, it can add real value to the insurance industry. Chatbots are gaining popularity because they can provide quotes, immediate cover -24/7/365

According to a 2019 LexisNexis survey, more than 80% of large U.S. insurers have fully deployed AI solutions in place, including the research and development of chatbots.

Before we get into use cases, let’s have a look at some results Chatbots can drive for an Insurance Company

Enhanced Customer Experience

Increased Revenue through Up-selling and Cross-selling 

Here are the top use cases of how to improve the quality or aid the service executives to do their job better in insurance industries.

Use cases AI-Powered Chatbots

1.  Customer Engagement:

The first step of interaction with a customer in the insurance industry is through inquiry. Usually, customer service executives spend a lot of time providing policy information to users. Most of the time, the customer would ask trivial questions about the service, and the executives would need to answer those queries. But with a chatbot, these things can be handled easily. With the chatbot’s dynamic question and answering schema, most of the initial queries can be solved. Things like providing policy information to the user, query about the system and workings, etc. can be integrated into the chatbot. With this, executives can focus on real problems, where they are needed the most.

customer engagement with chatbot

2. Claim Processing

The second largest part of any insurance company is the claim handling department. There are literally thousands of claim processing requests every day. To handle that kind of in-flow of claim requests can be tedious as well as frustrating at times. Not all companies can afford to extend their service staff to incorporate faster request handling. Chatbots can be developed and set up such that they handle the initial claims and understand if at all, the claim is worth looking at. Chatbots can further simplify what exactly the customer requires. The claim amount, the reason for the claim, etc. can be extracted and given to the executives. It can make the job easier, as they do not need to read the entire claim to start claim processing.

Claim processing with chatbots

3. Premium Payment Collection

In the insurance industry, recurring payments and processing require the involvement of two parties. One is the customer who wants to make the payment and the field agent(s) who collect those premium payments. Although online payments are integrated, the customer still has a problem in deciding where to pay and how. Chatbots can be set up to get this payment service running smoothly. Chatbots can help the customer to find the appropriate channel through which they renew their policy. Customers can also find the relevant information required to make the payment. For example, chatbots can be developed to guide the customer through the process of making the payment. It can make it easier for a customer to get acquainted with the platform better and make the payments effortlessly.

4. Lead Generation and Conversion Rate

A lead is nothing but a potential customer. Leads are generated by the various marketing campaigns that a company runs. But they could also be generated by providing the information once the customer visits the portal or the website. Chatbots can provide specific information with which a lead can generate and then can be later handled by the marketing expert. It makes the whole process efficient for the marketing team. Not only lead generation, but lead conversion can also be handled by the chatbot. Chatbots can help in verifying whether the particular lead is good or not. With chatbots handling the lead generation and conversion, the marketing team can handle the customer base well and increase the sales efficiently.

quality lead generation with chatbots

5. Opportunity for cross-selling and up-selling

When a customer tries to buy a particular service or product, there is a small window of opportunity for cross-selling and up-selling. Sales executives know the other products that can be possibly sold to the customer. The most critical part is to get the products in line with the customer's needs. Chatbots can make this process more efficient. Chatbots can be integrated with learning models and recommendation systems that can logically guess which product the customer is more likely to buy. By remembering the profile of the customer and the product bought earlier, the chatbot knows well about the customer and can sell better. Chatbots can convert the opportunity for cross-selling and up-selling to a sale with a higher probability.

improve opportunity for cross selling and up-selling

6. Personalised Customer support· On all platforms

Day by day, the insurance industry is getting highly competitive. The key distinguishing factor is the relationship the company has with the customer. One thing that helps in making a better relationship is how well the customer is supported throughout the journey. Many questions need to be answered, other than the phases discussed above. Customers need to feel that they will be assisted whenever necessary. Chatbots can make customer support available all the time on all platforms like WhatsApp business, Apple Business Chat, Google Search page, Maps with the help of Google’s Business Messages. With chatbot handling the customer service requests, the staff can deal efficiently with customer’s requests. Chatbots can help retain the customers by providing them with the assistance they require at all times.

7.  Live Agent Support

Even with this competitive edge, the need for human presence might be required. In those situations, a voice and video chatbot sub integrated can really help out. As it's a bot it will still be the first level of support to help out users with general queries. Whatever queries the chatbot cannot answer can be transferred to the agent in real-time. At the backend helps agents with the conversation journey and helpful answers to the customers' queries.

8. Partner Assistance

With the help of the chatbot, enterprises can automate the entire process of partner onboarding and partner support. A chatbot not just helps your customers but also your agents by providing with all the documents that they may require to help assist any customer or in the agency like:

  • Customer Details: Details such as customer History, documentation, etc.
  • Policy Documents: Customer Documents, policy details.
  • Targets: Targets for the month, OKR scorecard.
  • Schemes: Company’s schemes and policy.
  • Incentives: variable reward, etc.


As seen, chatbots, if integrated well, can help in improving the flow of services provided and aid the staff. We hope that the article sheds enough light on why chatbot for the insurance industry is needed. A well-integrated chatbot can not only make your employees feel ease at working and making better sales but also can help retain customers efficiently.

A good deal of insurance CIOs are behind transformation and are planning or are already leveraging AI tech build foundations that many other industries have already started with. With Yellow Messenger’s Virtual Insurance 10X, your customer experience with richer conversations that deliver 10X value to your business. 
Don’t keep waiting! Start your journey of AI transformation with Yellow Messenger’s Virtual Insurance Agent - Demo

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