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Korea’s AI-based Chatbots To Replace Insurance Agents By 2022

By February 16, 2017 at 6:14 am
Insurance Agents Aid In Signing People Up For Affordable Health Care Act Coverage (Photo : Joe Raedle/Getty Images)

Artificial intelligence or the AI-based chatbots might be selling insurance policies by the year 2022 as announced by the Financial Policy Department at the Korea Insurance Research Institute. This type of marketing will definitely replace the current human insurance agents.

Kim Seog-young, the director of the above mentioned financial policy department claimed that these AI-based programs will surely solve the issue on the lessening number of insurance agents as well as the increasing fees for those agents.

The Korean economy has felt the growing number of affiliated agents each company has which leads to the competition between the insurers. According to Korea Times, with the presence of these AI-based agents, the current marketing channel will be transformed into a high-functioning sales workforce.

This latest breakthrough in the insurance marketing will also provide and offers services like healthcare, financial planning. With this, it has the tendency to speed up the competition over services and products.

Kim understood that human agents are good at determining the needs of the clients or the consumers then explain to them some of the intricate insurance policies. However, even if this is already high-functioning, the cost is somewhat burdensome.

So as insurance firms through the Korean government will embark on the AI-based chatbots, they will still carry the same strengths but the cost will just be minimal. The reason for its practicality is because these chatbots can handle and manage an infinite number of clients at the same time as per Asia Insurance Review.

People are already aware that insurers are already employing the AI technology but it is still in its early stage. It was last November when LINA Korea used the chatbot service which has been regarded as the first in the Korean industry.

The process starts with clients asking queries using the Kakao Talk mobile messenger service then the chatbot will provide multiple answers. If the AI-based chatbots will push through, the company projects that it will be able to save 140 million yen or $1.24 million from its payroll.

Apart from serving clients in their insurance needs, KIM also predicted that these AI-based chatbots will also help insurers expand their services on healthcare and hospitals.

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