Rising Service Costs and Higher Customer Expectations: AI Is No Longer Optional
Insurers are under pressure to deliver faster service, reduce operational load, and modernize customer journeys – all while staying compliant and managing complex legacy systems. Insurance AI helps you close this gap safely and at scale.
- Insurance customers now expect fast, convenient digital interaction across all channels, especially in service and claims.
- Service & claims teams face rising inquiry volumes and persistent capacity constraints, especially during seasonal peaks.
- 30–40% of all insurance customer inquiries are repetitive or informational-only, according to industry benchmarks and real case data.
- Many insurers have invested in self-service portals, but adoption remains low due to complexity and poor discoverability.
This combination of rising expectations and operational pressure has turned Insurance AI from a nice-to-have into a strategic requirement across the insurance value chain.
See What Insurance AI Can Do — Live
See how an AI assistant can automate repetitive service requests, support acquisition journeys, and operate fully GDPR- and EU AI Act–compliant. We’ll walk through real insurance use cases and show what’s possible based on your current systems.
Why Insurance AI Matters Now
Four Shifts define the Transformation of Customer and Operational Journeys
- Customers expect instant and intuitive digital service instead of complex portal navigation.
- Operational teams struggle with rising volumes and limited staffing capacity.
- Thirty to forty percent of inquiries are repetitive or informational, which makes them ideal for automation.
- Digital investments fall short because adoption is low and ROPO behavior increases acquisition costs.
Taken together, these forces show why insurers need a scalable way to improve customer experience, reduce operational load and increase digital adoption in a compliant and controlled manner.
Customer Expectations Have Shifted
Insurance customers increasingly expect the same convenience, clarity and speed they experience in fully digital industries. These expectations have been shaped by frequent interactions with digital-native services because those services offer seamless journeys and intuitive support.
Customers expect fast, simple and reliable digital service across every channel because other industries have raised the customer experience benchmark.
They want clear guidance during stressful moments, for example after an accident or when they need coverage information, because these situations create emotional pressure.
Customers expect consistent handovers between channels because fragmented journeys and repeated questions undermine trust.
Expectations continue to rise as new digital competitors and comparison platforms make traditional experiences feel slow and complex.
What this means:
Insurers need to simplify and modernize customer interaction because expectations are now shaped outside the industry and apply equally to insurance.
Operations Are Under Persistent Pressure
Service and claims organizations face sustained pressure as inquiry volumes rise while staffing capacity remains constrained. Insurance operations rely on manual processes that slow teams down because inquiries are often time sensitive and require multiple steps.
Contact volumes continue to increase because products, documents and regulations become more complex.
Peaks in service and claims activity create bottlenecks because teams cannot scale quickly in response to seasonal demand, and limited flexibility puts additional pressure on operations.
Recruiting and retaining skilled staff is difficult because talent pools are small and turnover is high, and budget constraints further restrict available capacity.
Manual processes and legacy systems increase workload because employees must handle repetitive tasks that do not require human judgment.
What this means:
Insurers cannot rely on expanding teams to manage demand, therefore they need scalable ways to handle routine inquiries and relieve operational pressure.
High Automation Potential With Low Customer Risk
A large share of insurance customer interactions follows predictable patterns because many requests are informational or administrative. This makes them suitable for intelligent automation that improves both speed and consistency without increasing risk.
Industry benchmarks and insurer case evidence show that thirty to forty percent of inquiries are repetitive or informational only, which means they can be automated safely.
Tasks such as address changes, policy updates, payment questions and document submissions follow structured workflows that can be handled autonomously.
Customers prefer fast and reliable answers for simple issues because they do not want to wait for human support.
Automation allows experts to focus on complex scenarios because routine work no longer consumes their time.
What this means:
Insurers can significantly reduce workload and improve service quality by automating predictable interactions that do not require human decision making.
The Digital Investment Gap Is Growing
Insurers have invested heavily in portals and self service tools, however adoption remains low because insurance is a low-frequency business. Customers interact with their insurer only occasionally, which means they do not remember how to use portals or apps when they need them. In many cases, interactions occur in stressful moments when guidance matters most.
Self service portals are underused because customers rarely engage with them, which means they forget passwords, processes and available options.
Insurance differs from other financial services because customers interact with banks ten to twenty times more often, which helps them build digital habits that insurance does not benefit from.
ROPO behavior is widespread because customers research online and purchase offline. ROPO means research online and purchase offline, and it is common in insurance because customers explore products digitally and then contact a broker or call center when they need reassurance or clarity. This increases acquisition costs because online journeys create intent while offline channels capture the conversion.
Digital journeys often break when customers face friction or uncertainty, which leads to abandonment and high-cost service escalations.
What this means:
Insurers need digital interaction models that work even when customers engage infrequently, which means they should guide users through key tasks without requiring them to navigate complex portals.
Improving Service Capacity Through Intelligent Automation
A leading German Direct Insurer introduced an AI assistant powered by our partner moinAI to handle a large share of repetitive service inquiries. The assistant supports customers around the clock and resolves common questions instantly, which reduces workload for service teams and improves the overall experience during peak demand periods .
Benefits achieved:
- More than 10,000 customer interactions automated every month
- Around 37 percent fewer repetitive manual inquiries handled by staff
- 12 percent reduction in call volume because simple topics are resolved immediately
- Higher service availability because the assistant responds continuously
- More time for service teams to focus on complex and value-relevant cases
Improving Digital Acquisition for a German Multiline Insurer
A major German Multiline Insurer introduced an AI assistant powered by our partner moinAI to support customers during online research for pet insurance products. Pet insurance journeys often involve detailed questions about coverage, exclusions and pricing. The assistant guides customers through these decisions, answers questions instantly and provides clear next steps, which reduces friction and helps more users complete the process digitally.
Benefits achieved:
- Higher quote completion
- Fewer abandoned sessions
- Reduced ROPO behaviour
- Better qualified leads
- Increased sales efficiency
Core Services That Make Insurance AI Deliver Real Impact
AI Strategy for Insurance
We define where AI creates real value in your customer interaction because insurers need clarity on which use cases improve acquisition, service and claims. You gain a clear roadmap, expected outcomes and measurable success criteria.
Insurance Customer Journeys
We design digital journeys that work for low-frequency and high-stakes interactions because insurance customers need simple and guided experiences. Your organization benefits from higher digital adoption and more consistent engagement.
Conversational AI & Automation
We implement AI assistants that automate routine tasks and support customers across channels because insurers must reduce operational load while improving service speed and accuracy. Our solutions integrate seamlessly into your existing systems.
AI Governance & Operations
We ensure AI works safely and transparently in customer-facing insurance processes, which is essential under GDPR and the EU AI Act. Your teams operate AI solutions confidently and benefit from clear accountability and continuous improvement.
We combine these services to help insurers turn complex requirements into clear, actionable steps. With a structured approach to Insurance AI, your organization can deliver better customer experiences while controlling risk and improving efficiency.
Ready to See What Insurance AI Can Do for Your Business?
Insurance AI delivers measurable impact across acquisition, service and claims because it improves customer experience while reducing operational load. Book a demo to explore real use cases and see how an AI assistant works in your environment.
We do not offer a generic product demo because every insurer has different processes and customer expectations. We prepare specific use cases based on your product lines and current challenges, which means you see how Insurance AI works in your environment, not in a theoretical example.
Tell us about a process, journey or KPI you want to improve, and we will prepare focused examples that show how Insurance AI can support that change.
