Balancing Lower Costs and Improved Customer Experience: Conversational AI in Insurance

Conversational AI has emerged as a transformative technology in the insurance industry, offering the potential to streamline customer service, reduce costs, and enhance the overall experience for policyholders. In a recent conversation between industry experts, Gary Leyden from InsTech.ie , Gerry Mc Kenna from Parly.ai, and Michael Hardy from Verisk, key considerations surrounding the implementation of conversational AI strategies in insurance were discussed. This article explores the insights shared during the conversation, highlighting the importance of maintaining cost-effectiveness while prioritizing customer experience, leveraging data for enhanced interactions, addressing data privacy and security concerns, understanding the nuances between conversational and generative AI, and ensuring ethical and regulatory compliance.

Striking a Balance - Lower Costs and Improved Customer Experience

The conversation began with Gary raising the question of how to provide both lower costs and a better customer experience through centralized and automated customer service. Gerry responded by emphasizing that lower costs can be achieved by integrating conversational AI into the insurance journey. By leveraging chatbots and virtual assistants, insurance providers can offer assistance to customers online, reducing the need for them to engage with contact centre staff. This not only reduces costs for insurers but also provides customers with a convenient self-service option. Gerry further highlighted that customer usage data and feedback are crucial in continuously improving the customer experience and driving revenue growth.

Leveraging Data and Conversational AI

Michael shared his perspective on the use of data in conjunction with conversational AI. He emphasized that providing consistent information and minimizing the need for customers to search for answers enhances the overall journey. Michael highlighted the importance of accurate data to ensure pricing accuracy while making the customer experience as seamless as possible. The panellists acknowledged the potential of language models to improve over time, but cautioned against deploying generative AI without human verification, particularly in regulated environments.

Ethical Considerations and Privacy

The conversation also touched upon ethical considerations, privacy, and data security. Michael stressed the need for awareness regarding what users could potentially upload, such as driving licenses and other sensitive documents. Protecting personal identifiable information (PII) and handling customer data with care is of utmost importance. The panellists agreed that robust security measures, encryption, tokenization, and collaboration with cloud infrastructure providers like AWS are vital to ensure data protection.

Conversation Design and Challenges

The design of conversational AI systems emerged as a critical challenge. Gerry highlighted the importance of creating seamless customer journeys while navigating legacy platforms and incorporating the expertise of insurance professionals. By augmenting existing systems rather than replacing them, insurers can leverage the benefits of conversational AI. The ability to modify conversation flows easily through a no-code/low-code platform enables quick adjustments and improvements.

Regulatory Compliance and Auditable Conversations

Regulatory compliance and auditability were key concerns discussed during the conversation. The panellists emphasized the importance of providing accurate and verified answers to ensure compliance with industry regulations. Parly.ai's approach involves assigning a confidence score of 100% to ensure precise answers. This not only satisfies regulatory requirements but also enables regulators to trace the customer journey and understand the advice given.

Conclusion

Conversational AI presents immense opportunities for the insurance industry, allowing insurers to strike a balance between cost reduction and enhanced customer experience. By leveraging data, ensuring privacy and security, focusing on conversation design, and maintaining ethical and regulatory compliance, insurers can harness the power of conversational AI to transform customer interactions. As technology evolves and language models improve, the insurance industry stands to benefit from continued advancements in conversational AI, ultimately providing policyholders with personalized, efficient, and seamless experiences.

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