How Chatbots Change the Insurance Gameplay for Startups

By CIO Applications| Tuesday, January 28, 2020

Insurance startups slowly realize the potentials of chatbots, and they are introducing them to reach a wider audience spectrum at an affordable cost.

FREMONT, CA: The insurance industry is witnessing massive transformations, especially with the emergence of technological innovations. The budding insurance companies today are more flexible to changing customer needs. They are faring well when it comes to technological incorporation too. In addition, accelerating internal operations, insurance startups are also focusing on customer-facing applications like chatbots. Chatbots are allowing intelligent conversations with users and customers. They have immense potential for insurance startups as well as for the customers.

Insurance startups lack deep financial pockets. However, they are not under pressure to embrace advanced technologies on top of their traditional systems either. Thus, technological innovations are the easiest way for them to compete with conventional insurance giants. Focusing on customer interaction, chatbots can reduce the need for insurance startups to invest in human representatives, which is cost-intensive. Chatbots can deliver highly improved operational efficiencies to the firms by managing and answering thousands of queries at the same time. On the customer side, chatbots stretch the interaction window with 24 hours of availability a day.

Chatbots are also being used by insurance startups to educate customers about relevant policies and procedures. Thus, brands can effectively interact with the customers resulting in reduced pressure on human labor. Further, chatbots can help customers with claims processing by providing them necessary updates regarding the procedures. Upcoming payment notifications and simplification of the payment process are other noteworthy aspects of insurance where chatbots can reduce the pressure on startups.

Given that, it can be concluded that chatbots are leveling the ground for insurance startups by providing unparalleled benefits.

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