What is TSP?
Nowadays, Artificial Intelligence is the rage across different industries. Surprisingly, the insurance industry is a significant investor in AI-driven technology. A 2017 Global Trends Study estimates that the insurance sector spent an average of $124 million in AI technology. Interestingly, this amount is $54 million more than the average of other surveyed industries. Recently, QBE, a global insurance powerhouse, invested massive amounts of funds in HyperScience, a machine learning company. What’s more, this is not QBE’s only AI investment.
Even so, a raging debate is ongoing regarding the benefits and drawback of AI technology. As a result, players in the industry have organized a summit to address the use of machine learning.
In the AI ecosystem, chatbots are essential elements. For instance, Allstate introduced a chatbot known as Allstate Business Insurance Expert (ABIE). Additionally, Singapore Life’s SingLifeChatbot helps clients on Facebook process their life insurance applications.
Consider the above examples as just the tip of the iceberg as many more companies are adopting the use of AI in business. Nonetheless, this is not to imply that the insurance industry has a monopoly over AI-powered chatbots. What is most surprising is the industry’s affinity for AI.
Despite perceived unsexiness of the insurance sector, it stands to reap tremendous benefits from AI applications. In particular, the widespread adoption of chatbots is a trend, now and in the future. Below are a few ways in which chatbots benefit insurance companies:
Benefit # 1: Reduced Customer Confusion
Data from a recent survey indicates that insurance jargon confuses 72% of clients. For instance, most consumers find it challenging to tell the difference between whole life insurance and term life insurance. But that needs not be the case, as chatbots can help reduce or eliminate confusion. Chatbots can translate complicated terms into everyday language as well as guide consumers through processing steps.
The difference between the FERS or CSRS Annuity and the TSP is that the annuity is based on your years of service, rather than how much you have contributed, and is also voluntary, as opposed to the annuity.
Regardless of which retirement system you qualify for, contributing to the Thrift Savings Plan is vital to your retirement, primarily if you contribute early. TSP compound interest means that the earlier you start to make contributions, the better. However, if you did not start saving at an earlier point, committing to a steady and consistent contribution schedule will almost always produce positive results.
Benefit # 2: 24/7 Availability
Regrettably, difficult controlling events lead to insured claims. In the event of a disaster, policyholders are restricted to filing claims during business hours. Unlike human who needs to recharge, chatbots can work 24/7 365 days. Even better, chatbots can handle all types of traffic without fatigue. This meansthat clients no longer need to wait on hold for a customer care rep.
Benefits # 3: Process Streamlining
Also, chatbots can help reduce the amount of paper and superfluous processing stages when filing insurance claims. Regrettably, most consumers dread the claims filing process. Despite the challenges involved, chatbots are helping transform insurance processes. In early 2016, for example, Lemonade Insurance’s chatbot, Jim, settled a claimwithin3 seconds.
Not all insurance chatbots can settle claims in record time. However, chatbots can reduce processing and wait times significantly. Besides that, the evolution of machine learning is still in its infancy. On the flipside, chatbots have no human empathy and are easy to manipulate. Luckily, developers are working on overcoming these drawbacks. Even so, chatbots are one way of solving challenges in this industry.