Insurance Robo-Advisor

What Does Insurance Robo-Advisor Mean?

Insurance robo-advisors are AI-driven software that provide insurance services with little to no human involvement. These robo-advisors offer relevant assistance by gathering information from the customer and processing it through an algorithm to deliver personalized recommendations.

Insuranceopedia Explains Insurance Robo-Advisor

Robo-advisors are often described as the future of insurance. Currently, most insurance applications are handled by human agents, typically through face-to-face interactions. However, web-based applications and automated processes are expected to replace traditional brokers. Most people already see early versions of this technology when they go online to compare car insurance quotes, where the system asks for driver and vehicle details and then returns rates from several companies in seconds.

Insurers stand to benefit from robo-advisors by significantly reducing labor costs. As the technology advances and as new customers become more adept at using and interacting with digital tools, robo-advisors have the potential to deliver customer service that matches or even surpasses that provided by human agents. The same approach is showing up in the life insurance market, where shoppers can answer a short health questionnaire online and get quotes from several life insurance companies without speaking to anyone.