Insurance experience to be fully managed by chatbot
2nd November 2017
Cove is soon to introduce the first insurance experience in New Zealand to be fully managed by a chatbot.
Cove is a local insurance startup led by Andy Coon, Rob Coon and Brett Wilson. Andy & Rob grew up around insurance, with father Chris a founder of industry stalwarts Sovereign and Partners Life.
For nearly a year the Cove team has been working on making Kiwis’ insurance experience simpler, drawing on the founders’ international experience and through local focus groups.
“Most people we spoke to admitted they didn’t really understand how their insurance worked or what they’d actually bought. In general, what they wanted was an insurance experience that was quick and painless and provided them with rock-solid cover”.
“We took note of how simple and clear the customer processes are with Lemonade and the emerging breed of digital financial service providers, as well as how quickly they are gaining enormous popularity” explained CEO, Andy.
So what do chatbots bring to the table?
Chatbots are still a relatively new technology, however their growth in recent months has been substantial. Both Air New Zealand & the responsible drinking campaign Cheers are trialing, or have launched, chatbots in New Zealand with a positive reception.
Chatbots can simplify the process of purchasing traditionally complex products such as life insurance, and make it a smoother process to navigate without reams of paperwork. More importantly, chatbots can seamlessly connect with a range of other technologies, such as facial recognition software, to detect a person’s age and health from a simple selfie.
Internationally, chatbots in the insurance industry have enabled claims to be paid in as little as 3 seconds, and policies purchased in just 90 seconds.
“Initially we are looking at offering insurance products that will be clear and easy to understand, easy to manage, and simple to purchase” explained Head of Product, Rob.
“Early feedback from consumer testing on our next range of insurance products has been extremely positive, and we look forward to introducing them to New Zealanders in 2018.”
Insurance purchases are typically triggered by life events or significant purchases - having your first child, buying your first home, etc. As traditional insurance companies struggle to connect with this younger digitally-focused market, chatbots offer a way to open the conversation and educate this audience of the role life insurance plays in their lives, and provide a simple manner to purchase the policy that best suits the individual.
As the younger and more technologically adept market continues to grow, the insurance industry has a responsibility to transform its image from a complex, policy focused sector, to one that is more in tune with providing an exceptional user experience for all New Zealanders.