The insurance industry is broadly investing in chatbots

Insurance Industry - Chatbot

Insurers are looking for new ways to improve their customer experience amidst a hiring shortage.

The insurance industry worldwide is investing in AI-powered insurance chatbots to help boost the customer experience they can provide, even as they face their largest ever hiring shortage. Inflation, rising interest rates and greater global economic pressures have increased the drive insurers have to look at alternative opportunities to keep their customers this year.

Many consumers find that it is preferable to interact with chatbots for completing many tasks.

According to 2019 data (the most recent studies published by Statista on the subject), 44 percent of consumers are comfortable interacting with Chatbots to file their insurance claims. Moreover, another 43 percent of customers find Chatbots preferable when applying for a policy in the first place.

Insurance Industry - Chatbot help

As companies find themselves tightening their belts, chatbots are providing a new option to consider in redefining the way they interact with their customers. ChatGPT and other AI-powered solutions are expected to play an important role in the future of the insurance industry. Insurers are now deciding if they are ready to adopt these tools early on, to ensure that they are experienced in using them as they become commonplace, and to provide them with everything they need to move through the economic slowdown.

Chatbots have been making a splash since last November when ChatGPT was first launched.

The chatbot was demonstrated earlier this month at the Insurtech Insights Europe conference. When prompted about the advantages it could provide insurers, ChatGPT shared that its “knowledge”, which is based on about 175 billion data parameters, and its communication skills could provide customers with assistance regarding their basic queries and could help insurers keep up with customer needs and emerging trends.

The chatbot has become quite controversial in many industries for a spectrum of reasons, including in that it risks cutting humans out of their jobs and replacing them with software. That said, the insurance industry has been facing a hiring crisis in which it simply cannot hire enough people to fill the open positions. As was recently reported by Live Insurance News, new positions are regularly opening, and – as an aging industry – many people are retiring, but there simply aren’t enough people applying for these open positions.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.