My previous blog posts in this series highlighted natural language processing (NLP) technology, which enables computers to understand and process human languages, and its benefits for insurers. Carriers have embraced NLP and are implementing it to increase automation capabilities, become more efficient and create a more sophisticated, engaging customer interface.
It’s just the beginning…today’s break-throughs are tomorrow’s inevitability and NLP adoption is no different. Nearly all insurers will eventually be using chatbots and virtual agents, it’s just a question of whether they want to be leaders or followers. Chatbots and digital agents for CSR are all the rage today, but internal processes for insurers will likely be next.
Lemonade is a good example of the pressure insurers will soon feel from competitors in their ultra-competitive industry. In addition to their A.I. Jim claims bot, which closes claims in as little as a few seconds, Lemonade’s chatbot, Maya, sells inexpensive homeowners’ and renters’ insurance. Customers can use the Lemonade app to do everything, from buying insurance to making a claim in minutes. Customers can record a video testimonial via the company’s app, instead of filling in forms.
This hands-off, high-tech approach, which relies heavily on NLP to communicate with customers without having to bring them through the door, appeals to young consumers who aren’t used to the traditional process of sitting in an office and filling out paperwork. In fact, 81 percent of Lemonade’s customers are between 25 and 44 years old; and 87 percent have never previously bought home insurance.
There will be a fundamental change in the way insurers interact with their customers. The ability of organizations to offer efficient, automatic communications via natural language processing is fast becoming a pressing need.
To attract and retain today’s consumers and maintain a competitive advantage, the adoption of NLP services throughout the insurance lifecycle, from onboarding, to claims and customer service, is no longer a nice-to-have, it’s essential.
For more information, please check out our white paper, Insurers Can Benefit from Natural Language Processing (NLP), which outlines the advantages of NLP for insurers and explains what is needed to maximize NLP.