Empathy AI in the Insurance Sector

     

Mr. K V Dipu - Senior President  & Head - Operations & Customer Service,

Bajaj Allianz General Insurance Co. Ltd.

"Empathy AI has the potential to bridge the gap between human understanding and machine intelligence, creating a world where technology is not only smart but also compassionate." - Unknown.

 According to a report by Markets and Markets, the conversational Market of AI in India is expected to increase from USD 267 million in 2020 to USD 1,628 million by 2025, at a CAGR of 43.9% during the forecast period. The global empathy AI market was valued at $1.3 billion in 2020 and is expected to grow at a CAGR of 33.2% from 2021 to 2028. (Source: Grand View Research)

This growth of AI can be attributed to a range of factors, such as increasing smartphone usage, the need for personalised customer experiences, and the growing demand for chatbots.

AI has come a long way in the last few years, and conversational AI is one of the most exciting developments in the field. With the ability to simulate human conversation, conversational AI has the potential to revolutionise customer service, education, healthcare, and much more. But there is one area where conversational AI can genuinely shine: empathy. Human advancement has been driven by improving tools, machines and innovation that enlarge our regular abilities. However, our emotional mind – the part that controls our empathy has had little assistance from creation.

 According to a study by Salesforce, 80% of customers say the company's experience is as important as its products and services. And one of the critical factors in a positive customer experience is empathy. Customers want to feel understood and know that the person they are talking to cares about their problem. A study by HBR (Harvard Business Review) found that customers who feel emotionally connected to a company are more than twice as valuable as those who are satisfied with the company's products or services alone.

Many labs are designing software to understand and respond to how what humans say and how they feel. The applications of artificial empathy are wide-ranging, from market research to transportation to advertising to customer service. Herein lies the opportunity to create exceptional experiences while retaining the hearts of consumers all the while. For example, one startup created a bot for mental health. It is a conversational AI system that provides mental health support. The system uses cognitive-behavioural therapy techniques to help users manage their emotions and improve their mental health. According to a study published in the Journal of Medical Internet Research, this mental health bot effectively reduced symptoms of depression and anxiety in users.

 Empathy AI can also help insurance companies improve their reputation and build trust with their customers. Empathy AI can help insurance companies differentiate themselves by providing a more human and compassionate approach to customer service in an industry often viewed as cold and impersonal. This can increase customer satisfaction, loyalty, and positive word-of-mouth.

 One of the critical areas where empathy AI can bring in immense value is customer service. In the insurance industry, empathy AI can help insurance companies provide a more human and compassionate approach to customer service, which is crucial in a sector that has traditionally been viewed as cold and impersonal. By leveraging NLP and ML to understand and respond to human emotions, empathy AI can streamline the claims process, predict, and prevent customer churn, and improve the overall customer experience.

 Empathy AI is not about replacing human empathy but enhancing it. As mentioned in the article, the emotional mind - the part that controls our empathy - has needed more assistance from innovation. Empathy AI has the potential to revolutionise the way we understand and connect with people's emotions, which can lead to exceptional experiences and customer loyalty across various industries.

 The growth of empathy AI presents an opportunity for the insurance industry and other industries to improve their reputation, build trust with their customers, and provide a more human and compassionate approach to customer service. By leveraging AI to understand and respond to human emotions, companies can create exceptional experiences that retain the hearts of consumers.