It's hard for consumers to think of the insurance industry as tech-forward or on-trend when digital innovation is concerned. However, the reality is that an increasing number of consumers choose to deal with digitally innovative companies in the insurance sector.

Approximately two-thirds of customers would rather speak to a chatbot than wait 15 minutes for a human on a call, according to a recent study by Tidio, which means your clients and prospects could receive faster and more efficient service with the help of a chatbot.

Insurance chatbots are digital assistants that use artificial intelligence (AI) to provide customer service support. Companies can utilize various kinds of insurance chatbots. Some of these are customer-facing, like contact center software. But another type of chatbot works on the back end. These virtual assistants can generate and send tickets, streamline the claim management process, and help in many other ways. These nifty chatbots can be deployed through the company's internal messaging or email systems for maximum efficiency.

Insurance is a competitive industry that can benefit from innovation, and insurance chatbots can provide just that. They're easy to set up, don't require additional software, and can be managed through a third-party vendor.

Here are four ways insurance chatbots could lead to innovation at your agency: 

1) 24/7 support. The best thing about using automated chatbots is they're always available. You don't have to worry about customers messaging at odd hours because they'll be able to get the help they require anytime and anywhere. 

2) Multilingual features. Hiring different operators for different languages is hard on your wallet and a mess to stay on top of. Insurance chatbots can address queries no matter which language they're posted in for efficient and effective customer support.

3) Tailored insurance advice. One of the best features of AI is that it's always learning. This is what makes insurance chatbots so innovative. They can learn consumer habits and preferences over time. These preferences are then matched to customer queries, meaning chatbots can automatically give great advice on insurance claims and other factors. They can also suggest good deals and make relevant recommendations depending on what consumers want. 

4) Fraud prevention. It's imperative that insurance companies take strict measures against fraud and data theft. Consumers willingly hand over personal information to insurance agencies and one slip-up could have major fallout. Insurance chatbots are an excellent way to protect against fraud. AI processes customer requests and continuously monitors activity to detect fraud and security violations.

These chatbots can send constant alerts to both the consumer and the relevant employee to warn them against possible fraudulent activity. It's innovative and efficient, since you don't need continual human supervision in the process.

Grace Lau is the director of growth content at Dialpad, an AI-powered platform for better and easier team collaboration. She has over 10 years of experience in content writing and strategy.