In the 60’s there was a quirky show, Lost in Space, where one of the main characters was a robot. The robot was the surrogate guardian of one of the young space family members, Will. When the robot sensed a threat, it would mechanically say, “Danger, Will Robinson”. The robot looked like a refrigerator with dryer vent arms, but it could sound the alarm. The robot’s ability to respond to situations and suggest options is not too dissimilar from intelligent chatbots. Although today, the robots are virtual and have a human-like appearance and voice.
Insurers are under increasing pressure to cut costs and offer better digital services to their customers. While core systems replacement and modernization activities close the gap to a degree, insurers are looking to a range of automation technologies to improve service, reduce costs, and increase profits. Virtual agents are an adoptable form of cutting-edge technology that is getting a lot of attention from insurers for its ability to improve efficiency and generate operational excellence.
In my new report, The Virtual Agent, Natural Language Processing in Insurance, I define types of chatbots, provide use cases, and define best practices for getting started with natural language processing. Advances in artificial intelligence mean that chatbots can automate more interactions than were previously possible with older technology. Now, enterprises can use artificially intelligent chatbots as virtual agents or assistants to replicate the effectiveness of their best customer service representative (CSR) to reduce customer frustration and wait times.