Connect with us

Top 10

HOW CHATBOTS ENSURE PREMIUM SERVICE IN INSURANCE

Insurance providers, such as AA Ireland, are transforming customer engagement and increasing sales conversion rates using chatbots and conversational AI, explains Cathal McGloin, CEO of ServisBOT (www.servisbot.com):

 

Introduction:

Writing in Insurance TimesOliwia Berdak, principal analyst at Forrester, commented that, among all the technologies that insurers are exploring, “pragmatic AI has the biggest potential to deliver on insurers’ top business priorities in 2019, improving customer experience and generating revenue.”

 

Rules of engagement:

Within the sphere of ‘pragmatic AI’, conversational AI interfaces, such as chatbots, offer a whole new engagement model where customers can obtain a quote, file a claim, renew a policy, request information, and complete onboarding more conveniently and at a lower cost to the insurance provider.

Insurance companies can no longer expect people to engage nine-to-five. Consumers want to interact on their time and using their preferred channels, which may include voice assistants such as Amazon Alexa, or Google Home, messaging apps, SMS, web or mobile apps, as well as the more traditional email, live chat, and phone channels.

 

Cathal McGloin

Premium service:

While price will always be an important factor when purchasing an insurance policy, the customer experience is key. Is the policy information easy to find, or is it hidden in the small print? How responsive is the insurance provider when customers make a claim? The more positive interactions they can provide, the more likely the insurer is to increase loyalty and retention.

Virtual assistants or chatbots that integrate securely with relevant business systems and third-party data, can provide more contextual and personalised engagement that enhances the customer experience. Deploying these task-oriented chatbots drives business results such as higher retention rates through renewals, increased conversation rates on policy quotes, and increased revenue through more effective onboarding.

Besides an insurance company making services more accessible and automated, chatbots also make it easier for insurers to understand the exact intent, or need, of the customer. Chatbots can work across different functions more seamlessly so that, for example, a Policy bot can work alongside a Quote bot to better inform customers on the difference between policies and which one best suits the customer’s circumstances. This leads to greater transparency and personalisation, positively impacting conversion and sales.

 

A friend in need

Since chatbots work 24/7, services are always available when a customer needs them.

A customer reporting an accident and filing a claim on the spot provides a perfect example of the benefits of having a chatbot constantly available to engage at the point of need and in the customer’s preferred channel. The customer may choose to interact via the insurance provider’s mobile app, SMS, or a messaging app, on their mobile device, while they’re stood on the roadside awaiting recovery of their vehicle. A claims bot can request image uploads of a driver’s license, registration plates, and photos of damage, on the spot, helping to shrink the claims filing and processing timeframe. This also reduces a lot of the friction that customers normally have to deal with in filing a claim.

ServisBOT works on the principle of deploying and co-ordinating an army of insurance bots that can do everything from generating a quote, on-boarding a new customer, renewing a policy, collecting payments, and many other use cases: bringing convenience and lower costs, while improving the customer experience.

 

Case study: Using Bots to Win Business

To combat rising digital advertising costs and reduce the incidence of missed webchats, AA Ireland investigated how to employ chatbots to improve conversion rates on incoming quotation requests that came in out of hours, or when call centre employees were busy on calls.

AA Ireland used our conversational AI platform to develop its own Quote Bot, within seven weeks the bot was trained and ready to use. Within twelve weeks AA Ireland Quote Bot had increased conversion rates on online quotes by 11 percent and reduced the number of missed webchats by 81 percent. Additionally, where customers had interacted with the Quote Bot to answer their initial queries online, they spent 40 percent less time on the phone with customer service employees.

AA Ireland reports that the Quote Bot is reaching people who haven’t previously contacted the insurer. Working in combination with the Quote Bot allows customer service specialists to focus on answering more complex queries and overcoming objections to win customers’ business.

AA Ireland Customer Lifecycle Manager, Louise McCormack comments, “Increasing conversion even by one to two percent helps to make the business more profitable. The potential to use AI-powered chatbots to improve our conversion rates, while providing operational efficiencies across customer service, was an opportunity we couldn’t ignore.”

Following the success of Quote Bot, AA Ireland has deployed a customer service bot and a travel quote assistance bot, with plans for additional bots.

 

 

Conclusion:

Lloyds of London has drawn up its six-part transformation blueprint, with five of the areas involving building out a technology platform. The goal is to double the value of insurance business done, to increase the efficiency of processing policies and reduce the cost of sale of premiums which is currently 40p in every £1.

AI in all its forms is becoming integral to business systems, processes, and engagement models. For our part, we are making it easier for insurance providers to implement and launch conversational AI without needing a data scientist or solutions architect. We take away technical complexity so that insurance providers can focus on how they can apply AI to help them engage with customers more efficiently.

In 2020 as more pragmatic AI success stories emerge, we foresee other insurance companies moving beyond tactical deployments and adopting a chatbot strategy that is cross-functional across the whole business and customer life-cycle. This strategic approach will allow them to benefit from the genuine transformation that chatbots can bring.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top 10

PREMIUM RATES REQUIRE PREMIUM SERVICES

By Kash Amini, CEO and Founder of MasLife

 

A few years ago, the UK world of finance was disrupted by the likes of Monzo, Revolut, Starling and other neobanks. They have managed to play the roles of the ‘good guys’ and built an impressive customer base – ending 2019 with almost 20 million customers globally according to Accenture’s Digital Banking Tracker. Now, it seems the unicorn fairytale is about to end with ongoing challenges to grow profit. It’s not all rainbows and corals, fintechs need to offer more if they want their customers to pay premium rates.

For quite a while, the narrative used to be all about trust. Good old HSBC or Lloyds Bank might not have the quickest customer service or interactive mobile app features, but they had customers’ trust. It was a question of changing the UK customer mindset to venture out and see what neobanks had to offer. With a decent few millions of customers in the UK, we parked this conversation and started with ‘How can traditional banks compete with fintechs?’. New era. More technology, more flexibility, better customer service.

New chapter – 2020 has led the fintech conversation strongly with profit challenges. People are still more inclined to pay premium rates to the industry veterans rather than to flying unicorns. You probably know all of this, now, scrap that. Forget all you knew about the last few years and months in the consumer finance space. This is 2021 we need to talk about and customers now want more than ever.

 

This year has changed us all.

In the UK, three out of four people reported a change in their wellbeing, according to Deloitte’s The Impact of Lockdown on Wellbeing and the Economics of Happiness from July this year.

Google analysis shows that people are looking for ethical brands, now more than ever.

According to McKinsey, each month, more consumers expect the impact of COVID-19 on the economy will last a year or longer.

We could carry on listing stats and customer research but what do they mean for the fintechs struggling with profitability? These changes mean that you need to think about the impact your brand has on customers’ wellbeing. Yes, even a financial institution should do this. Consider your brand purpose, how have you helped the world to go through the pandemic? The future is blurred and unpredictable and people will think at least twice about where they pay their premium rates.

The fintech vs traditional banks war started with trust. Now, let’s admit it, the oldies have an upper hand of a long history in times of financial uncertainty. To fight on their level, you have to offer more than just seamless technology, apps with emojis and solid customer service. This is what your customers already expect, they don’t want to pay premium rates for what they consider standard.

Based on the behavioural changes the pandemic storm has brought, here are three key attributes the unicorn breed of fintech firms are missing, which could spell the difference between an onwards-and-upwards trajectory rather than a crash-and-burn scenario.

 

Do some good

We are not talking about an all singing and dancing corporate social responsibility campaign with a big PR stunt about it. Consumers don’t buy that anymore. It’s about the real impact of your services.

The finance sector and most fintech apps do not have the consumer’s interest in mind. They are intentionally letting users go into debt in order to generate revenue. This isn’t the way to humanise the finance sector, and it is definitely not a mindful approach to customers’ wellbeing and future finances. Customers are looking for ethical applications, so fintechs who can show and prove they care about not just the customer, but about scenarios chiming with customer feelings – like improving the climate or wellbeing will likely be chosen.

Helping people realise how to reach their potential is missing big time. Fintechs need to give users a 360 degree approach to their life and realise the need for a holistic approach to customer finance.

 

Be human

Years ago, this would have sounded strange in the context of financial services. For  a long time, it’s been one of the most sterile industries. But fintechs are missing a trick here.

When you’re looking at finance holistically, it’s important to realise that a healthy relationship with money is part of one’s wellbeing and affects all the other aspects of your customer’s life – personal, business and health.

Gamification can offer the answer to humanising financial services. It moves the process of dealing with money away from it being ‘just a finance app’ and adds more support to creating a healthier approach to personal finance.

Dr. Bradley Klontz, respected financial psychology expert, has conducted several studies on customers’ relationships with their finances. People with money avoidance issues will avoid looking at account balances, bank statements, will not adhere to budgets and run away from their financial problems. Gamification and calming features can help people overcome the worry of opening their money account and make them feel more connected.

 

Look premium

Most people wouldn’t pay a premium price for a basic t-shirt, so why would they when it comes to a banking app? If you want to charge premium rates, you need to offer premium looks as well and emoji icons and neon colours are not going to make the cut. Think about the design of your app and payment card, do they really look premium? Do they attract premium customers?

Design is the base for good looks but it should go in hand with the points raised earlier – gamification and overall wellbeing. Consider images that decrease the anxiety associated with financial matters, together with a calming user interface design. Incorporating nature and meditation features to give a much more holistic feel will also promote a better relationship with one’s finances. Health and wellness themes will make it more pleasant for people to deal with finances.

We have seen new trends emerging in the last few months with some consumer brands having approached new ways of engaging with their customers. But the big unicorn fintech world still awaits a strong player which can take a lesson from this year’s changes, offer additional value and cater to the current and future premium customers.

 

Continue Reading

Business

SOCIAL MEDIA AND THE FINANCIAL INDUSTRY: TOP 5 REASONS TO DEVELOP A LONG-TERM STRATEGY

Social media is not just for people to share stories and opinions anymore, and it has not been just that for a long time. Nearly every platform is a place for businesses, including financial institutions, to build a following, share important information with active or potential clients or customers, and reach out to people in a variety of ways, whether through text, images, or videos. And while we doubt a solely meme-based strategy will work for your business, a social media presence is vital, and you should consider how your company can use it to its fullest.

To do so, you will need a long-term strategy. While developing one might not be easy in a constantly changing online landscape, here are some of the top reasons to start developing your long-term strategy as soon as possible:

 

1) You Can Be Ready for Major Opportunities

The world is constantly changing, especially in these current times, and while there are many things that can happen, there are some key situations you know your business is prepared for. Whether it is a downturn in the economy or circumstances that would lead to a ramping up of investments across the board, you want people to be able to know where to go and who to talk to. With a social media plan, you can respond to these opportunities quickly and effectively, ideally with less confirmation and more action.

And waiting for the right time to start is the only wrong choice that matters now. Your business will need time to build an infrastructure, a social media methodology, and a following. By the time that is done, any new opportunities will have passed, or will certainly not have been seized on to their fullest potential.

 

2) You Can Build Trust in Your Institution

While you likely do not want your clients constantly worrying about their accounts (that is what your institution is there for, to alleviate such concerns), you also should not be completely absent from their minds or exist only as a distant and replaceable entity that provides a very basic service. You want what makes your organization great to shine through, and with a social media plan, that is more likely.

By staying in the public eye through providing important and useful information to them free of charge on social media, among other initiatives, you can improve your company’s brand in a significant way, and likely retain clients and gain new ones in the process (whether by word of mouth or improved natural traffic) through positive reputation and a sense of trust in your people. It is an investment that might take time to pay off, but it will pay off.

 

3) You Can More Easily Promote Your Online Systems and Resources

If you can provide direct links to your pages, sites, and tools, it is much better and quicker than giving someone a pamphlet that they might never read. Social media allows for just that, without the commitment of an email newsletter or similar techniques.

And while you certainly have people already using your institution’s online tools (and it would be hard to imagine your company does not have them in 2020 to at least some degree) you can use social media pages to better direct them, increase usage as opposed to more inefficient methods, and provide information as to their best uses. You want the investments made in technology and design to pay off. Use a social media plan to make that happen.

 

4) You Can Build a Team and Mission

As you are certainly aware from all other parts of your business, a good team and good processes make all the difference, and with a long-term plan, you can create the foundations for those personnel to thrive and give them clear instructions on how you want the company to be seen by active and prospective clients. Once people know what they are working with, they can work better.

A planned team will be able to be more organized and be able to use data of several types more efficiently than a simple unplanned posting schedule. You will be able to track what is working and what does not all the better for the changes.

 

5) You Can Be Proactive Instead of Reactive

Rounding back to the first point, if you have a long-term social media strategy for your financial institution, then you can plan for the future, even if that future is uncertain. You can have a plan that allows your social media and marketing teams to work more easily in conjunction and to target the likely people to use your organization’s services in the near future. As opposed to responding to events, you will be at times anticipating them.

Consider the top websites of recent years. While you probably aren’t operating on the same scale, does a single one of these websites not have a significant social media presence on at least a few platforms, if they are not one of the most trafficked websites in the world? Your financial institution needs to go to where the people are, and ideally be there before people start looking for answers. A long-term social media plan allows for just that.

 

Conclusion

You do not need to start investing all of your marketing budget into social media or create a team that’s as large as some of the top companies in the world. You just need to get started and get your priorities clear when it comes to social media. Even devoting just a few resources towards creating a consistent, long-term strategy can make the difference between stagnation and success over the next decade, and given that every competitor is either already working with a plan or soon will, its best to start working as soon as you can.

 

Continue Reading

Magazine

Trending

Top 109 hours ago

PREMIUM RATES REQUIRE PREMIUM SERVICES

By Kash Amini, CEO and Founder of MasLife   A few years ago, the UK world of finance was disrupted...

Business11 hours ago

THE REASON WHY YOU NEED A LAWYER FOR YOUR BUSINESS

– Peter Before we get into deeper into the law of business, let’s find out who the lawyer is or...

Business12 hours ago

SOCIAL MEDIA AND THE FINANCIAL INDUSTRY: TOP 5 REASONS TO DEVELOP A LONG-TERM STRATEGY

Social media is not just for people to share stories and opinions anymore, and it has not been just that...

News12 hours ago

2020: THE YEAR THAT CHANGED US ALL

There isn’t an industry that hasn’t felt the impact of 2020. Every sector has had to adapt to deal with...

News12 hours ago

TECHNOLOGY: THE SAVING GRACE OF THE MONTH-END HEADACHE IN FINANCIAL REPORTING

The end of the month is a challenging time for many accountants and financial analysts as they race to close...

Banking13 hours ago

WHAT STRATEGIES CAN BANKS USE TO COMPETE WITH NEW DIGITAL PLAYERS?

Banks are experiencing a gradual loss of their monopoly, due to the arrival of new players born from digital transformation....

News13 hours ago

VIVA WALLET BRINGS GOOGLE PAY TO ITS CUSTOMERS IN 11 COUNTRIES

Today, Viva Wallet, the European digital-first payments provider, is announcing its customers can now enjoy the benefits of Google Pay, the most popular mobile payment...

News13 hours ago

SINNAD ENABLES FINANCIAL INSTITUTIONS IN BAHRAIN TO OFFER SECURE AND TOKENISED MOBILE PAYMENTS

SINNAD, a leading GCC third-party payment service provider based in Bahrain, has teamed up with trusted partner Compass Plus to enable its...

TAX HAVENS TAX HAVENS
Finance13 hours ago

HOW TO ENSURE YOUR CHILD’S ASSETS ARE PROTECTED

Making money is one thing, but protecting it is another – this is particularly true if you want to pass...

Business14 hours ago

HOW DOES COLLABORATION TECHNOLOGY BENEFIT HR AND RECRUITERS?

People management plays a large role in human resources today. Both customer and employee expectations are higher than they have...

Finance14 hours ago

THE IMPORTANCE OF THOUGHT LEADERSHIP CONTENT IN THE FINANCIAL SERVICES SECTOR

The collapse of Lehman Brothers in 2008 marked a turning point in the financial services industry. Not only did the...

News14 hours ago

BIAN SPEARHEADS THE NEW FRONTIER OF BANKING WITH UPDATES TO ITS SERVICE LANDSCAPE

Not for profit organization announces its 9th update to innovation model   Today, BIAN, the independent not-for-profit association, announces Service...

News14 hours ago

ORACLE BRINGS BIG BANK ANTI-MONEY LAUNDERING PROTECTION TO SMALLER INSTITUTIONS

New cloud application suite helps mid-sized banks stay safe, compliant, and ready for growth   Oracle today announced new cloud...

Technology14 hours ago

HOW TO ACHIEVE THE BEST POSSIBLE CUSTOMER EXPERIENCE THROUGH ARTIFICIAL INTELLIGENCE

By Craig Charlton, CEO of SugarCRM   Before high definition televisions were introduced, home entertainment was limited to a grainy...

News14 hours ago

MEEZAN BANK INKS DEAL WITH BPC BANKING TECHNOLOGIES TO ACCOMMODATE PAKISTAN’S DIGITAL PAYMENTS BOOM

Pakistan’s largest Islamic bank kicks off its digital transformation programme with the upgrade of its legacy payment platform   Partnership...

News3 days ago

ESSENTIAL SCREEN BREAK COMPLIANCE AT AN ALL-TIME LOW AMONG REMOTE WORKERS DURING PANDEMIC

Fewer UK workers are taking Health and Safety (HSE) recommended screen breaks than ever while working remotely, a new survey...

News3 days ago

GALA TENT LAUNCHES OPEN BANKING SOLUTION FOR TELEPHONE PAYMENTS

Gala Tent, the UK’s largest manufacturer and supplier of commercial marquees and gazebos, has launched an open banking application programme...

Finance3 days ago

THE IMPACT OF CORONAVIRUS ON CRYPTOCURRENCY AND ITS FUTURE

The beginning of March was disastrous for major global markets. When news of the coronavirus pandemic spread, the stock market...

Banking4 days ago

BANKS SHOULD NOT TAKE DATA PRIVACY FOR GRANTED IN THEIR BREXIT TRANSITION PLANS

Rich Vibert, CEO and Co-founder, Metomic   UK banks are not as prepared as they should be for Brexit. This...

Wealth Management6 days ago

UNDERSTANDING THE RISKS INVOLVED IN TRADING FOREX

The foreign exchange market attracts numerous traders every day because penetrating the market is easy. To venture into trading forex,...

Trending