Remember when calling your insurance company meant sitting on hold forever, listening to elevator music, and praying anyone would finally pick up? Well, those days aren’t entirely gone, but they’re quickly fading thanks to a new wave of digital helpers: chatbots and virtual assistants.
If you’ve filed a claim, asked a billing question, or even just looked at your policy online recently, there’s a good chance you’ve interacted with a chatbot or virtual assistant. These AI-powered assistants are the new frontline of customer service in the insurance world, and they’re not bad at it.
What Exactly Are These Bots and Virtual Assistants (VAs)?
Chatbots are automated programs that carry on conversations with people, usually through a company’s website, application, or even texting. Virtual assistants, like Siri or Alexa, are a bit more advanced but trained to help you navigate the company’s available information for your insurance needs.
They answer common questions, update your personal information, walk you through a policy quote, or even start the claims process. These automated tools do everything without getting tired, cranky, or stuck on a lunch break.
Why Insurers Love Them
Insurance isn’t always the easiest thing to deal with. Policies are complex, claims are stressful, and nobody wants to spend time dealing with any of it on hold. These bots are becoming MVPs for insurance companies and their customers.
Here’s why people are warming up to them:
- 24/7 Help: Problems don’t follow a 9-to-5 schedule. Bots and VAs don’t sleep, so whether you’ve got a question at 3 p.m. or 3 a.m., they’ve got you covered.
- Faster Answers: No more endless menus or waiting in the phone queue, as these tools quickly provide information on coverage, deductibles, or claim status.
- Less Paperwork: Some virtual assistants can now auto-fill forms, file basic claims, and even send you policy updates without downloading or faxing anything.
- Consistency: Humans can give inconsistent answers depending on who you talk to. These tools follow the same rules every time, which means fewer surprises and more straight answers.
What Don’t They Do?
Bots are great at handling routine questions but don’t work well when things get complicated. Multiple claims, needing legal guidance, or appealing a denied claim are things bots can’t handle yet, so these more variable issues still need human touches. Bots are improving but still get confused by slang, typos, or specific scenarios.
A phrase like, “My tree fell on my neighbor’s car, but it was parked in my yard during a BBQ…” still freezes up a bot and requires human interactions.
The Human Touch Still Matters
Insurance companies also know empathy and human reasoning still can be essential for certain client interactions, and right now, bots and virtual assistants can’t deliver empathy.
So, the best insurance customer service systems are hybrids, with bots handling the easy stuff and humans addressing the messy, complicated items that can require human-to-human interactions to navigate successfully. Some platforms even let you type “talk to a person,” and you’re handed off without starting over from scratch.
Are They Safe?
Security is a big deal when you share personal information. Most insurance companies use encrypted systems to secure and protect your data, even when you’re chatting with a bot.
That said, consumers should always confirm they’re on your insurance company’s official site or application before giving out sensitive information. A bot should never ask for your full Social Security number or bank login.
If it does, back away and report the website or application to your insurance company so they may investigate it.
Bots and Virtual Assistants Are Not a Gimmick
What used to feel like a gimmick is now a serious part of how insurance companies operate. These virtual assistants are faster, wiser, and quicker in addressing frequently asked client concerns or issues.
These digital automated tools won’t replace real people anytime soon, yet they are making customer service more efficient, responsive, and bearable. So, the next time you need help with your insurance and a little bubble pops up saying, “Hi! I’m Ava, your virtual assistant,” give it a shot.
Ava can solve your problem before your coffee gets cold. Agility Holdings Group (AHG) invests in innovative InsurTech, HealthTech, and related companies that aim to revolutionize access to insurance products, establish patient care, and improve health outcomes.
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