7 Key Use Cases for Insurance Chatbots

In the insurance market, things get tricky.

Choosing the right insurance is a complex decision. Having competitive prices is just the tip of the iceberg; insurance companies work on the basis of promises and need to earn the customers’ trust that they’ll deliver on those promises.

Not to mention that insurance is a tailored product. What works for one customer won’t work for the next. Under these conditions, clear communication is vital. If you can explain your plans more quickly and clearly than your competitors through personalized communication, you’ll put your business at an advantage.

That’s why chatbots are a unique solution for this approach. You can offer immediate, convenient and personalized assistance at any time, setting your business apart from other insurance agencies.

Here are eight powerful chatbot use cases for insurance businesses.

  1. Ask questions to help choose an insurance plan
  2. Explain insurance plans in simple terms
  3. Automatically process claims
  4. Cover policy details and answer questions
  5. Collect more applications and qualify customers
  6. Assist customers with insurance payments
  7. Receive feedback on your plans and customer service

Ask questions to help choose an insurance plan

Chatbots can help make purchasing insurance a casual affair. Your business can set itself apart by using automation to simplify an otherwise tedious search process.

A proactive chatbot can greet your customers and offer to answer any questions they may have about claims, coverage, regulations and more. Likewise, it can ask your customers questions about their lifestyles to help determine the right plan — such as their age, occupation, travel frequency, and any risk factors.

For example, Geico uses its virtual assistant to greet customers and offer to help with insurance or policy questions. The user can then either type their request or select one from a list of options.

screenshot of chatbot on Geico website
Geico’s chatbot even provides a convenient link to help hurricane victims receive immediate assistance.

Setting something like this up is rather simple if you have an existing FAQ page or chat transcripts to determine what customers inquire about most. Geico offers customers to get a policy quote, make a payment or get ID cards, likely their most popular requests.

We recommend getting started with a customer messaging solution to start learning about what your customers are inquiring about most.

Explain insurance plans in simple terms

A chatbot is a great tool for clearly explaining your insurance plans. You can use a bot to ask qualifying questions to learn the customer’s needs before recommending plans.

For example, you could create scripts for each plan so that your chatbot can do a comprehensive price breakdown. This would be a transparent way to show customers what they’re getting for the price and how much is covered depending on the need or accident.

Many sites, like TARS, offer pre-made insurance chatbot templates so you don’t need to start from scratch when creating your scripts. You can focus on editing it to include your insurance plan information and not worry about setting up logic.

Chatbots are extensions of your team, but customers don’t need to give them their full attention like they would with an agent.

When translating your insurance plans into chatbot scripts, consider adopting a casual, conversational approach. In Allstate’s FAQ page, questions are phrased how a customer would ask them:

infographic of messaging support in the adoption curve, a major customer service trend

If Allstate started using a chatbot, they could easily use this page to write simple and helpful scripts to help customers across their website. This saves customers having to click away from your plans to find the contact page.

Automatically process claims

In insurance, customers value speed. The time consuming process of submitting and processing claims or applying for insurance can be easily mitigated by a chatbot.

According to Statista , only five percent of insurance companies said they are using AI in the claims submission review process and 70% weren’t even considering it.

When you consider how automation can help, this number seems ludicrous. Chatbots can detect inconsistencies in a claim, report fraudulent details and reduce the processing times for validating death certificates by cross referencing government websites.

example image of customer uploading an image to show car damage

“By starting with deep industry expertise and AI-based tools, companies will benefit from increased speed, accuracy and efficiency. Further, the increased productivity opens up more time for insurers to develop the personal connections customers are looking for when making insurance decisions.” - Yoann Michaux for IBM

According to IBM , robotic process automation in insurance can speed up claims processing since it can move large amounts of claim data with just one click. Traditional claims processing requires employees to manually gather and transfer information from multiple documents.

With a customer messaging solution like Userlike , your customers can upload media within the chat (for example, pictures of the damage), which your chatbot can then quickly and easily forward to an agent for processing. Handovers are also possible at any time just in case customers need immediate human assistance.

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Cover policy details and answer questions

Customers may have specific policy requirements, or just want to compare what your business offers to your competitors.

For insurance and legal jargon, you can use button options or keyword recognition so customers can learn more about difficult topics and terms. For example, you could display button options within the chat to help guide the conversation.

screenshot of Ubie on chatbots page
You can test our Logic Bot by talking to Ubie on our chatbot page .

You could use such button options during policy explanations so customers can learn more about what you offer.

For example, your chatbot can skip covering the conditions of a policy and instead give the customer the chance to select if they would like to hear more about it. This puts the customer in control and lets them learn about the aspects that matter most to them.

Collect more applications and qualify customers

Visitors are likely comparing your insurance to other companies’, so you have to get their attention. This is where live chat and chatbots prosper; you can proactively approach more potential customers directly on your website to create leads.

screenshot of chatbot on Concordia homepage
Concordia Insurance uses website chat to make its agents readily available on the homepage.

With Userlike, you can ask for an email address before the customer even begins the chat. Then your chatbot can take care of the rest of the lead generation process : stoking interest, converting the customer and leading to a sale and/or forwarding to an agent to complete a transaction.

image of chatbot sending a download link in chat

You can even have your chatbot send forms and downloadable content directly within the chat. That way your customer doesn’t have to search your website for what they need.

Your chatbot can then take all the necessary steps to qualify your customers and only push the serious ones through to your agents.

If you haven’t done it yet, we also highly recommend using our post “4-step formula for calculating your chatbot ROI” to determine how much you can save and earn by using a chatbot. This will also help you determine how many customers you could earn per month.

Assist customers with insurance payments

At the German insurance agency LVM , they use live chat to respond to customers asking for the status of their damage claim.

A chatbot can assist with this process by collecting the customer’s user ID and question to help forward the request to an agent, or share the status of their claim.

According to our chatbot survey, “What do your customers actually think about chatbots?” almost 40% of customers are also comfortable making payments using a chatbot.

A chatbot can also help customers inquire about missing insurance payments or to report any errors. A chatbot can either then offer to forward the customer’s request or immediately connect them to an agent if it’s unable to resolve the issue itself.

example image of a chat being forwarded in Userlike

A chatbot can also help customers close their accounts and make sure all charges are paid in full.

Receive feedback on your plans and customer service

Giving feedback to a business takes time and effort. When a customer has their inquiry covered, why stick around a few minutes more to answer questions?

image of star rating system

Chatbots help you cleverly collect feedback directly in the chat box. It can be as simple as showing button options or asking your customer to leave a few words about their experience at the end of the chat.

Or you can have your chatbot automatically send a survey through email or directly in the chat box after the conversation ends.

Plus it’s important to know how your chatbot is doing so you can monitor its performance and make any necessary improvements. With Userlike, our chatbot shows a five-star rating system at the end of every chatbot conversation. Customers can also leave written feedback, and agents can use the chatbot’s transcripts to see how the conversation went.

Your AI options for your insurance business with Userlike

At Userlike , we offer a chatbot within our customer messaging solution to assist your agents. It uses simple syntax so you can easily write scripts for every customer scenario — from applications to emergency assistance.

Since our chatbot, also known as the Logic Bot, is connected to our customer messaging solution, all customer conversations and chatbot controls are in one place. We offer several routing modes so you decide when your chatbot is active.

You can use it as the first contact for customers, as backup for your agents or for requests received outside of service hours.

Screenshot of configuration settings for chatbots in Userlike

Our chatbot also has sophisticated button and carousel options for quick and easy navigation.

To get a feel for our Logic Bot, you can test it out by talking to Ubie on our chatbot page.

Screenshot of conversation with Ubie on Userlike chatbots page

If you build a chatbot with an external service, we also offer a chatbot API . This lets you connect your pre-built bot to our service and take advantage of all the functions we mentioned above.

Some benefits of using our Logic Bot or connecting a bot to our API are:

  • Allow easy handovers to an agent at any time
  • Being able to monitor transcripts for improvements
  • The freedom to set your ideal chat parameters
  • Setting up your bot to proactively message customers
  • Provide 24/7 service
  • Connect your chatbot to the many integrations we offer

If you’re interested in our chatbot solution, start a chat on this screen to talk to a member of our team. And if you’re in need of a high quality customer messaging solution, try our 14-day trial for free , no strings attached.