Insurance Chatbot Global Market Report 2024

The insurance chatbot market size has grown exponentially in recent years. It will grow from $0.61 billion in 2023 to $0.77 billion in 2024 at a compound annual growth rate (CAGR) of 26.3%. The growth observed in the historic period can be attributed to a focus on personalization in insurance services, the expansion of multichannel capabilities for better customer engagement, increased utilization in claims processing for efficiency, the application of predictive analytics for decision-making, and the integration of insurance chatbots with voice assistants, enhancing accessibility and user experience.

The insurance chatbot market size is expected to see exponential growth in the next few years. It will grow to $1.94 billion in 2028 at a compound annual growth rate (CAGR) of 26%. The anticipated growth in the forecast period can be attributed to rising customer expectations, a focus on cost efficiency and automation in the insurance industry, the increasing prominence of digital channels, enhanced customer engagement facilitated by insurance chatbots, and the rapid growth of insurtech. Key trends in the forecast period encompass continuous advancements in artificial intelligence (AI), the adoption of explainable AI (XAI), the implementation of dynamic scripting and adaptive conversations in chatbot interactions, the utilization of AI-powered fraud detection, and the incorporation of human augmentation in customer support processes.

The increasing demand for automated services is poised to drive the growth of the insurance chatbot market in the coming years. Automated services involve processes, tasks, or systems operating with minimal human intervention, utilizing automation technologies, algorithms, and artificial intelligence (AI) to execute predefined actions or workflows. Insurance chatbots, virtual assistants powered by AI, play a crucial role in automating tasks and services for insurance companies and their customers. These chatbots handle routine tasks, provide real-time support, and contribute to a more seamless and responsive customer experience. According to Formstack, a US-based software company, in May 2023, approximately 76% of organizations employ automation to optimize daily workflows, 58% use automation for data and reporting to facilitate planning, and 36% integrate automation to ensure compliance with regulations. This increasing demand for automated services is a key driver propelling the growth of the insurance chatbot market.

Major players in the insurance chatbot market are actively developing new products, particularly focusing on chatbots for customer service, to gain a competitive edge. Customer service encompasses a range of activities and support provided by businesses or organizations to assist and satisfy customers throughout their purchasing journey. For instance, INZMO, a Germany-based financial services company, launched NIMO, a ChatGPT-powered chatbot, in June 2023, to enhance customer service on its consumer website. NIMO, leveraging OpenAI's ChatGPT technology, provides 24/7 personalized assistance to INZMO customers, streamlining interactions on queries related to insurance policies, claims procedures, coverage options, pricing structures, and more. INZMO plans to further enhance NIMO's capabilities, exploring features such as self-service functionality, sales guidance, personalized recommendations, and support in the claims and settlements process.

In June 2022, Glia Technologies Inc., a US-based customer service technology company, acquired Finn AI for an undisclosed amount. This acquisition enriched Glia's Digital Customer Service (DCS) platform by integrating Finn AI's proven conversational AI solutions. The integration allows Glia to offer a comprehensive and industry-leading chatbot solution for financial institutions, streamlining customer interactions and driving operational efficiencies at scale. Finn AI, a Canada-based AI-powered chatbot platform, brings valuable expertise to Glia, reinforcing its position in the dynamic landscape of digital customer service. This strategic acquisition underscores the commitment to advancing technology solutions in the insurance chatbot market.

Major companies operating in the insurance chatbot market report are Amazon.com Inc., International Business Machines Corporation, Allstate Corporation, Oracle Corporation, Geico, Nuance Communications, Verint Systems Inc., Userlike, Shift Technologies, LivePerson Inc., Lemonade, Yellow.ai, Boostlingo, Conversica, Ada Support Inc., ShareChat, Snapsheet, Insurify, Lexalytics Inc., Spixii, Chatfuel, Livegenic, Violet, Alphachat.ai, Sense360, Botsify, ManyChat, Engati, Inbenta Technologies Inc., SANA Benefits.

North America was the largest region in the insurance chatbot market in 2023. The regions covered in the insurance chatbot market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurance chatbot market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The insurance chatbot market includes revenues earned by entities by providing services such as customer service, lead generation, claims processing, underwriting, and policy recommendations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The insurance chatbot market consists of sales of computers, mobile devices and smart speakers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

An insurance chatbot is a specialized chatbot created to assist users with inquiries, tasks, and transactions related to insurance. These chatbots are designed to enhance operational efficiency, improve customer satisfaction, and facilitate seamless interactions between insurance providers and policyholders.

The primary types of insurance chatbots comprise customer service chatbots, sales chatbots, claims processing chatbots, underwriting chatbots, and others. Customer service chatbots are automated systems specifically crafted to engage with customers, handle inquiries, deliver information, and provide real-time assistance. These chatbots utilize various user interfaces, including text-based and voice-based interfaces, and are deployed across various platforms such as web-based and mobile-based applications.

The interface chatbot market research report is one of a series of new reports that provides interface chatbot market statistics, including interface chatbot industry global market size, regional shares, competitors with interface chatbot market share, detailed interface chatbot market segments, market trends, and opportunities, and any further data you may need to thrive in the interface chatbot industry. This interface chatbot market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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