UC Advanced - issue #3


How digital transformation is advancing the insurance industry in 2023 The insurance sector may be in line to be the first major industry to benefit from Gen AI

Driving Extraordinary Customer Engagement While the use of bots in the insurance sector is not a new phenomenon, those that have been used thus far have mostly been non-AI, rule-based bots that simply answer common questions. This year, we are witnessing a continuing transition from these basic bots to fully-fledged digital assistants that can leverage customer profile data and history to tailor responses and actions to each customer’s specific needs. Personalisation has become the name of the game and AI chatbots are becoming more than just a cost-saving solution for insurance companies According to Gartner research, insurers define customer experience as a success factor and nearly 60% of insurance executives report increased spending in digital innovation for improved customer

The three-year pandemic, followed by a mind-blowing “GPT-themed” spring of 2023, drove the digitalisation of the entire world to new heights. Interestingly, the insurance sector seems to have been affected the most by advances in natural language processing and conversational models. So, what are the emerging potentials for AI in insurance in 2023? Supercharging Claims Processing One of the most notable impacts of digital transformation and AI in the insurance industry is the optimisation of claims management and processing. Insurer claims processing is a critical function and has long been dominated by manual work, resulting in increased costs and inefficiency. According to Deloitte, claims processing takes up to 70% of an insurer’s expenses. Automation of claim processing has emerged as a game-changing innovation of the decade. More and more carriers are taking advantage of conversational AI for claim filing to eliminate inefficiency, and reduce manual labour and costs. Now instead of having to wait on hold or navigate through a confusing automated phone system, customers can simply speak to an insurance voice bot and get the help they need. Voice bots can ask customers specific questions about their claims, such as the date of the incident and the type of damage and can use this information to start the process. Thus, BNP Paribas Cardif, the global insurance leader operating in 33 countries, streamlined claim processing with the first call resolution (FCR) rising to 83% and saved $9m+ in operational costs over two years after the implementation of a voice bot Cardi.

More and more carriers are taking advantage of conversational AI for claim filing to eliminate inefficiency, and reduce manual labour and costs.

engagement, a trend that could

remain until 2025. Thus, GEICO, an

auto insurance company, has developed an intuitive and easy- to-use virtual assistant that helps the company’s prospects and customers with insurance and policy questions. It starts conversations and provides the necessary information to help the company turn prospects into paying customers. The new generation of smart chatbots provides immediate assistance and personalise the customer experience. For example, if a customer has a history of filing




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