The NLP Trend is Just around the Corner

By CIOReview | Thursday, June 20, 2019

The explorations of the many benefits of NLP for the insurance sector, including its extensive use as a cost-effective alternative to repetitive tasks that will streamline processes. The entire process will lead to greater customer satisfaction.

FREMONT, CA: AI is starting to bring massive insights into productivity, efficiency, and business value to a wide range of industries. But few are more enthusiastic to reap the technology’s profits than insurers. Natural language processing (NLP), a budding subset of AI, is on a pathway to see considerable growth over the coming years. NLP provides a diverse assortment of potential for insurers, banks, retailers, and digital assistants. Credence Research had recently forecasted that the global NLP market will develop at a compound yearly growth rate of 11.7 percent from 2018 to 2026. The market will reach the value of a projected $28.6 billion worldwide.

Customer experiences suggest that NLP is set to become a significant game-changer for the insurance sector. NLP provides insurers a cost-effective solution for eliminating repetitive tasks and aids in streamlining processes and enhancing customer satisfaction. Sophisticated chatbots and digital agents enable insurers to digitize legacy systems and operate more competently.

By leveraging NLP’s abilities to study human language and to produce dialogues using uncomplicated and conversational terms, some chatbots are already ushering in new efficiencies to customer onboarding. This liberates customer service agents to focus on more intricate and high-priority customer queries. Chatbots feed all relevant data to the agents, which enables them to attend customer needs quicker.

An added benefit for insurers (and for other sectors implementing NLP for customer service) is that NLP technology is competent in analyzing not only the intention but also the emotion behind the human language. Therefore, generating valuable insights into customer sentiment becomes much more appropriate.

NLP-driven chatbots and virtual agents also carry greater convenience accessibility to insurers’ operations. With Gartner foretelling that 85 percent of customer service exchanges will be taken care of without human participation, the insurance sector is situated to be at the vanguard of the shift toward more digitized operations.