Mr. K V Dipu - Senior President  & Head - Operations & Customer Service, Bajaj Allianz General Insurance Co. Ltd.

In today's fast-paced, digital-first world, customer expectations are shifting rapidly, and insurance companies are under pressure to meet these demands. Conversational AI, often seen as a tool for the future, is already here, redefining how insurers interact with customers, particularly in customer support and claims servicing. With AI-powered chatbots and voice assistants leading the charge, call centres are no longer seen as cost centres but as strategic hubs for delivering superior customer experience.

Let's break it down with real-world use cases and data from industry leaders to see how this transformation is unfolding.

Enhancing Customer Experience Through AI-Driven Conversations

Consider this: An insurance customer requests a claim after a car accident. The traditional process often involves:

• Navigating through call centre queues
• Waiting for a human agent
• Repeating details multiple times

Today, conversational AI offers a different story. Chatbots or AI-powered assistants handle these requests smoothly, gathering claim details and initiating the claims process within seconds—24/7. This is the future of insurance service delivery.

A recent report by McKinsey indicates that up to 50% of customer service interactions across industries can be automated using conversational AI, and the insurance sector is at the forefront of this shift. AI's ability to interpret natural language allows customers to receive human-like interactions, not just in one language, but in multiple languages—crucial for markets like India with its vast linguistic diversity.

AI-Driven Call Centers: The Silent Revolution

Conversational AI is revolutionising call centres, traditionally bogged down by long wait times and high attrition rates. Insurers are not merely deploying chatbots but are integrating them into the heart of their call centre operations. This results in faster query resolution, improved accuracy, and, most importantly, a shift from reactive to proactive customer service. This proactive approach is a sign of the promising future of customer service in the insurance industry.

By automating routine tasks—policy renewals, billing inquiries, and claim status checks—human agents can now focus on more complex interactions, where empathy and expert advice are critical. Data from Boston Consulting Group (BCG) suggests that insurers integrating AI into their call centres have seen a 25-30% increase in first-call resolution rates while reducing call handling times by 15-20%. This shift directly contributes to customer satisfaction and loyalty, a win-win for insurers and their clients.

If the system detects frustration or negative sentiment in a conversation, it can immediately escalate the issue to a human agent, ensuring no customer leaves dissatisfied. This hybrid AI-human model is quickly becoming the gold standard for call centre operations in insurance.

 Data-Driven Insights Fueling Innovation

The role of conversational AI goes beyond answering questions or guiding users through processes. It serves as a treasure trove of insights. Every interaction with a chatbot or voice assistant provides data that can be analysed to understand customer pain points, improve product offerings, and personalise services. Deloitte estimates that 70% of insurers will rely on AI-driven insights to design more targeted products by 2025.

For instance, insurers can analyse interactions during claims processes to identify common causes for delays and bottlenecks, allowing them to streamline these processes further.

Conclusion: A New Era of Insurance Service Delivery

Conversational AI is not just a buzzword in insurance—it's a game-changer. From streamlining customer service and automating routine tasks to transforming call centres into efficient, data-driven engines of growth, AI is setting new standards for customer engagement in the industry. As PwC highlights, insurance companies leveraging AI to enhance customer experience stand to increase their profitability by 20% over the next three years. This potential for improved customer experience is a reason for optimism about the insurance industry's future.