Insurance is something complex that common people find difficult to understand. Usually, it’s associated with legacy processes, paperwork, and other affairs. 

That too, to start with insurance, it needs a good investment, time, and energy from the customer’s end. Though people don’t want to skip this, it helps them secure their lives in terms of health and assistance in emergency conditions for themselves and their loved ones.

To go with any insurance policy, customers must have constant support from experts at every stage of their customer journey. For instance, based on their financial condition, executives must provide them with the most probable insurance schemes that can help them secure their lives. 

So, how to give the proper assistance and make customers comfortable to go with the insurance schemes?

Like other sectors, the insurance sector is also taking steps to leverage the maximum from the AI chatbots to change their businesses. 

AI chatbots are also proven as a powerful business strategy to engage and serve their customers. 

As per some studies, it’s estimated that chatbots are assumed to create over $8 billion in savings worldwide by 2022, providing round-the-clock service, faster resolution, lower and straight-through processing leading to enhanced customer engagement and satisfaction rate. 

What are Insurance Chatbot?

What are insurance chatbots

An Insurance chatbot is an AI-enabled virtual assistant solution built to fulfil customers’ needs for various purposes during their life journey. 

Insurance chatbots have changed the complete business strategy of the companies in how they acquire, engage, satisfy and retain customers. 

The percentage of people more willing to share or interact with brands is chatbots than human agents. 

The demand for insurance is high in the market, which leads to more competitors in the insurance sector. More companies are entering into these insurance sectors to fulfil the needs of the customers with more specifications. 

An analysis by Accenture shows that 74% of customers are inclined towards buying insurance from non-insurance companies. 

Let’s Understand What the Features of Insurance Chatbot Is?

When we talk about insurance companies, we can find a list of companies offering these services.

But among them, there are only a few who provide the satisfied service or right offers to the customers. The limited service from brands leads customers to end up talking with live agents. 

Chatbots work on a different level. Some can answer basic level 1 and 2 queries and chatbots with AI capabilities can analyze the customers’ needs and provide offering and assistance according to their needs or send them to the respective department agents.

Generally, AI Chatbots Hold the Following Features:

chatbot features in insurance


In the insurance industry, agents need to provide many services and many operations that need to be handled. Customers want their queries to be resolved as soon as possible with the right solution. 

A virtual assistant that is AI chatbots are capable of doing so in less time and with accuracy. They can perform these operations by accessing back-office systems through Robotic Process Automation(RPA).

Also, you need to keep in mind all chatbots are not capable of performing every operation. AI chatbots hold these capabilities, so before deploying any chatbot for your business, you need to check the features of the chatbot from different vendors available in the market.


When we go with human agents, the conversation is truly conversational. And the customers expect the same with the chatbot because most of the time, they are unaware of who is present at the other end. 

 Like agents can understand the customers what the phrases they speak in any mode. Chatbots must also be capable of understanding the context of customer speech. 

Otherwise, a chatbot may deliver the wrong solutions to the issues. That is very dissatisfying to customers and badly impacts the brand image. 

So before deploying the chatbot, you must check for chatbots who implement all the latest technologies and complex integrations that can smoothly perform overall operations. 


Insurance matters a lot in one’s life to secure their life and assistance to deal with emergency conditions. So customers don’t want to take any risks and look for the most trusted source to go with it. 

Generally, insurance amount transactions are done online or offline; a single error in transactions or interpretation will lead to a considerable loss to customers and insurance firms. 

AI chatbots must be checked multiple times till you get satisfied with the outcomes. 


Customers won’t stick to a single channel, and they want service wherever they present in their preferred channel.  

Chatbots with multichannel integration can do this for your insurance company. 

Using multichannel integration chatbots, you can connect with your customer on call, messaging platforms, smart home devices, mobile apps, and many other channels.

This is one of the factors that you must check before deploying for business. 


In the insurance sector, the data provided by the customers is confidential. A little negligence or error in handling customer data may lead to disastrous results.  

So how can you deal with this? Most chatbots can provide you the assurance of securing your data. Even they take consent from the customers before storing their details and chat history. 

40% of customers say security plays a vital role in trusting insurance companies. 

Also, in the consent note, they mention how and where they can access and use customers’ data and will not provide any access to third-party sources before taking consent from them.

Also, will delete the same on customer request at any point in time.

Chatbot companies must also comply with rules and regulations about customer privacy and security law such as GDPR

Chatbots can improve customer loyalty and brand engagement considering the operational cost and within your budget limits. 

Chatbots can efficiently perform this by connecting with customers more naturally. 

You don’t require all these features for every chatbot you deploy for different industries. 

The features you need for different industries are different based on what you can utilize. 

Let’s discuss-

The Most Common Insurance Chatbot Types Here:

Types of insurance chatbots

Health Insurance Chatbot

Health insurance chatbot generally assists the insurance plan members and patients solve their queries and provide the information they need related to their insurance plans. 

You can design your health insurance chatbots based on various use cases apart from resolving or providing information to them such as-

  • Monitoring patients recovery
  • Symptom assessment
  • Insurance underwriting
  • Scheduling service programs for chronic diseases patients
  • And similar other ways.

Car Insurance Chatbot

These chatbots help the customers and prospects compare and purchase the vehicle of their choice with confidence. 

Car Insurance chatbots can provide all the necessary details customers need at their fingertips. Generally, they provide services like- 

  • Claims handling
  • Insurance options have on their preferred vehicles
  • Customer service

Life Insurance Chatbot

Life insurance chatbots help customers find the best life insurance schemes based on their eligibility and rates. Various use cases of this type of chatbots are-

  • Claim handling
  • Sales
  • Customer service.

Home Insurance Chatbot

Generally, people have so many questions regarding their home insurance. 

It’s a critical decision, and before taking it, people want to be clear and confident enough to not get into any risk. 

Chatbots can help them in building that confidence by providing timely support and answers to their queries. 

Other Insurance Chatbot Types Include-

  • Property Insurance
  • Travel Insurance
  • Rental Insurance

Insurance Chatbot Benefits for Insurers

benefits of insurance chatbots

Let’s Discuss Insurers’ Benefits.

Chatbots can be deployed in various ways to build strong customer engagement and satisfaction rates irrespective of the industry.

Generate Leads

Chatbots can easily interact with the customers at any point in time and collect basic and other customer details. 

These details help the sales and marketing team to better deal with the customers. 

These details can be used later for improving customer experience, customizing services, offering the right offers, and many more. 

Process Claims

Customers have so much confusion, how to start claims. 

Chatbots can assist the customers in providing complete guidance and necessary resources to understand process claims and payment methods involved in it.

Educate Customers

For every question, chatbots will have answers. They can access the web or database, provide the appropriate solution to the customer queries, and even provide them with the best available information. If not, chatbots transfer the call or chat to the respective departments in a fraction of seconds.

Engage with Customers and Collect Feedback

Chatbots are best at taking suggestions and recommendations from customers easily and comfortably. 

Most people hesitate to respond to the live or human agents. 

Chatbots are more effective in collecting information from customers than on any other channels and platforms. It can compile data on their various customer service inquiries.

Free-Up Employees

Chatbots handle level 1 and 2 queries, and the complex tasks forward it to the human agents. That frees up the employees to focus on more complex tasks and let chatbots handle repetitive or providing information to the customers.

Let’s focus on-

Where Exactly Do Chatbots Help in Insurance?

Chatbots for insurance

The decisions customers make for insurance are quite complicated to them. Because they have so many options from different insurance providers, choosing the best for them is a daunting task and requires detailed information. 

While selecting insurance, customers need to check for the tax deduction, features, returns, investments, and other benefits that need good knowledge. 

Generally, when they go for insurance providers, they won’t provide complete knowledge because customers spend a couple of minutes understanding the policies; that’s not enough for them to get a complete insight. 

While insurance providers provide a brief of the policy to the customers, this information can easily be caught by the knowledgeable customer. Still, there are some people who are not from a finance or accounting background. Many terms go above their head and feel a little confused in understanding. 

When we consider the chatbot, they can understand the level of knowledge the customer holds from asking a few questions; based on that; it can provide resources and guides from the ample research and browsing through a list of web pages. Or transfer the call to the agents who can make them understand that topic clearly. 

With the evolution of online platforms and channels, customers’ expectations are also at the peak level, and they won’t tolerate a single error from the companies. To fulfil their needs, companies must understand the roadblocks and work on them to be parallel with the changing digital environment.

Insurance chatbots can understand the challenges customers face and provide the necessary assistance at every stage of their customer journey. Which includes-

  • Pre-purchase
  • Customer service
  • Back end operations

All These Operations Insurance Chatbot Can Perform With-

  • lower processing time and cost
  • 24/7 availability
  • Faster resolution
  • Direct processing

Let’s discuss-

The Various Use Cases of Insurance Chatbot in Detail:

usecases of insurance chatbots

Customer Awareness

Chatbots can easily educate the customer at every stage of their customer journey with the technical or account knowledge required by the customer to understand the process through web services resources and guides. Also, on various static faqs like-

  • Policy comparison
  • Policy suggestion
  • Process flow and many more.

Claim Processing and Payment Assistance

You can leverage the maximum from chatbots if customized according to your requirements. 

Insurance claims are one of the most apparent customer inquiries; with the help of chatbots, you can quickly reduce the burden of the customer executives by automating this process.

Additionally, chatbots also take the feedback to check whether they have resolved the issue or not to provide further assistance. 

It also updates the customer with notifications about the payment and claim status. The complete lifecycle will be simplified with just a conversation with the chatbots.

Lead Generation and Conversion

Chatbots, with their features, help companies in generating leads and conversion. 

Chatbots can collect the necessary details from the customers and, based on their requirements and chat history, offer the right policies appropriate to the customer.

That triggers the customer to take further action on that. This helps the insurance companies to convert prospects into customers.

Pre-sales and Sales

Insurance chatbots convert prospects into customers and segment the customer based on factors such as age, preferences, behaviour, interest, and many more. 

This segment further helps the sales team to understand the needs of the customer. When they encounter the customer, they can be confident enough to tackle their issue without further delay.

Sales teams can also take the customer segment with complex problems and work on it to target them better.

Customer Experience and Feedback

Generally, most of the customers hesitate to provide detailed info to the human agents. Also, there is some information they don’t want to share with strangers. 

In all such cases, chatbots have proved to be an efficient tool for companies to take quality customer information. Because when the customers know the other side is a chatbot, they feel comfortable disclosing that information. 

Even Insurance chatbots conduct surveys and take valuable feedback from the customers that help the company develop their services and even develop their website.

Insurance Chatbot Is Becoming the Industry Norm.

Insurance chatbots are becoming a non-avoidable strategy in their business operations. To be competitive in the insurance industry, chatbots are playing a vital role for companies.

Insurance companies now prioritize the chatbots to deploy them for various use cases and consider it as a great way to gain good ROI. The way companies deploy insurance chatbots is different based on the various types of services they offer. 

The various use cases include- 

  • Problem-solving,
  • Processing claiming, 
  • Lead-generation,
  • Pre-sales, sales, 
  • Customer awareness, 
  • And many more.

The insurance process is quite complex for the customer who lacks knowledge of tax, accounts, and finance. Insurance chatbots can significantly help them understand the technical terms and risks or benefits of the policy in the future.

The more common benefit of chatbots is that it’s cost-effective, takes less time, is automatic, and is available 24/7.

The major challenge here is to select the right chatbot vendor, which satisfies your company requirements and improves the overall process.

To suggest you, SmatBot is the best chatbot platform that can help you in all possible ways by customizing your chatbots and round-the-clock technical support. 

You can even go for a 14-day free trial. You will love it!