Insurance chatbots are the new buzzword ruling the insurance companies currently. The primary objective of a chatbot is to provide a faster and an efficient system for communication with the customers and streamline the tedious insurance tasks. The insurance sector is playing hard to automate their on-boarding, sales and training processes and make it available for the hand-held devices. But, the significant issues still lies with the sales force management where customers are a lot more aware, and the insurance products are more sophisticated and specific. A chatbot is the real game changer when it comes to salesforce management and revolutionizing the Insurance processes.

Here is a list of a few examples of how IT is transforming the insurance:

1. Virtual customer representative:

The typical scenario of the manual customer care system goes like putting the customer on hold with a constant background reminder that you need to wait for a few more minutes as our customer representative is on another call. It has always been a turn off for a customer because it is annoying, time-consuming and lacks efficiency. Insurance chatbots are here to put an end to these tiresome phone calls. Chatbot act as a virtual customer representative who is available at all the times. With the help of natural processing and artificial intelligence, they process the customer’s queries in just a few seconds with a personalized response. The total number of queries that can be handled by insurance chatbots is incomparable to the real customer care support.

2. Saving costs:

Business insider has predicted that implementation of insurance chatbots can save up to $12bn of labor costs. Insurance firms often invest a massive amount of money in recruiting, training and mentoring a workforce to make it eligible for the insurance processes. Leveraging the benefits of AI, and natural language processing and developing the agent, and customer chatbots can help to save substantially on these costs.

3. Better understanding with the customers:

When it comes to insurance then it is the most intimidating sector for the customers. 72% of the people are of the belief that they are not able to decipher the Insurance jargons used by insurance companies. It doesn’t give them a clear picture of what they are getting into when buying an insurance plan which makes them quite skeptical about investing in insurance. Chatbot is a great way to provide the straightforward answers to the customers and make them understand better.

4. Cut-down redundant processes:

The excessive paperwork involved with insurance lifecycle needs a dedicated workforce to manage it. Not just insurance agents but even the customers dread it. Chatbots together with AI make these processes much faster and easy that saves a lot of time. Though this is still in the nascent stages of development, it will be one of the key advantages of insurance chatbots in the future.

5. Providing customized solutions:

Customers can get solutions tailored to their needs instantly through chatbot. They will need to provide information like their salary, savings, what are they looking for in the insurance plan, duration and an automated insurance solution based on those inputs is presented to them. Apart from that they can also set renewable insurance dates, access their documents online, set reminder with the help of Insurtech Chatbot implementation.

Though there has been a surge in the use of Chatbots for insurance, still it has a long way to go. InsureTech responsible for implementation of IT in insurance companies needs to come up with more effective solutions to make the customer engagement a lot more pleasant and user-friendly.

Start your chatbot journey with Mantra Labs today. Know more https://www.mantralabsglobal.com/

References:

https://www.streebo.com/blog/how-ai-powered-chatbots-changing-insurance-sector/

https://venturebeat.com/2018/06/19/why-insurance-companies-are-betting-big-on-ai-powered-chatbots/

https://www.streebo.com/blog/chatbot-insurance-industry-chatting-betting-high-on-smart-bots/

NPS in Insurance Claims: What Insurance Leaders Are Doing Differently

By : Divyanjali Gupta

Published on Jul 24, 2025

Customer Experience CX Insurance NPI In Insurance

Claims are the moment of truth. Are you turning them into moments of loyalty?

In insurance, your app interface might win you downloads. Your pricing might drive conversions.
But it’s the claims experience that decides whether a customer stays—or leaves for good.

According to a survey by NPS Prism, promoters are 2.3 times more likely to renew their insurance policies than passives or detractors—highlighting the strong link between customer advocacy and retention.

NPS in insurance industry is a strong predictor of customer retention. Many insurers are now prioritizing NPS to improve their claims experience.

So, what are today’s high-NPS insurers doing differently? Spoiler: it’s not just about faster payouts.

We’ve worked with claims teams that had best-in-class automation—but still had low NPS. Why? Because the process felt like a black box.
Customers didn’t know where their claim stood. They weren’t sure what to do next. And when money was at stake, silence created anxiety and dissatisfaction.

Great customer experience (CX) in claims isn’t just about speed—it’s about giving customers a sense of control through clear communication and clarity.

The Traditional Claims Journey

Forms → Uploads → Phone calls → Waiting
No real-time updates
No guidance after claim initiation
Paper documents and email ping-pong

The result? Frustrated customers and overwhelmed call centers.

The CX Gap: It’s Not Just Speed—It’s Transparency

Customers don’t always expect instant decisions. What they want:

To know what’s happening with their claim
To understand what’s expected of them
To feel heard and supported during the process

How NPS Leaders Are Winning Loyalty with CX-Driven Claims and High NPS

1. Real-Time Status Updates

Transparency to the customer via mobile app, email, or WhatsApp—keeping them in the loop with clear milestones.

2. Proactive Nudges

Auto-reminders, such as “upload your medical bill” or “submit police report,” help close matters much faster and avoid back-and-forth.

3. AI-Powered Document Uploads

Single-click scans with OCR + AI pull data instantly—no typing, no errors.

4. In-the-Moment Feedback Loops

Simple post-resolution surveys collect sentiment and alert on issues in real time.

For e.g., Lemonade uses emotional AI to detect customer sentiment during the claims process, enabling empathetic responses that boost satisfaction and trust.

Smart Nudges from Real-Time Journey Tracking

For a leading insurance firm, we mapped the entire in-app user journey—from buying or renewing a policy to initiating a claim or checking discounts. This helped identify exactly where users dropped off. Based on real-time activity, we triggered personalized notifications and offers—driving better engagement and claim completion rates.

Tech Enablement

Claims Orchestration Layer: Incorporates legacy systems, third-party tools, and front-end apps for a unified experience.

AI & ML Models: For document validation, fraud detection, and claim routing, sentiment analysis is used. Businesses utilizing emotional AI report a 25% increase in customer satisfaction and a 30% decrease in complaints, resulting in more personalized and empathetic interactions.

Self-Service Portals: Customers can check their status, update documents, and track payouts—all without making a phone call.

Business Impact

What do insurers gain from investing in CX?

A faster claim is good. But a fair, clear, and human one wins loyalty.

And companies that consistently track and act on CX metrics are better positioned to retain customers and build long-term loyalty.

At Mantra Labs, we help insurers build end-to-end, tech-enabled claims journeys that delight customers and drive operational efficiency.
From intelligent document processing to AI-led nudges, we design for empathy at scale.

Want a faster and more transparent claims experience?

Let’s design it together.
Talk to our insurance transformation team today.

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