AI in pension schemes: Creating added value with a chatbot

Digitalization and innovative technologies are playing an increasingly important role in the world of pension schemes. The goal is to optimize processes, reduce administrative costs, and improve interactions between employers, employees, and pension providers or insurance companies. In this context, inquiries must be processed with absolute efficiency. Manual processes, however, are often time-consuming and error-prone. The future of pension scheme administration lies in artificial intelligence (AI), in particular in chatbots that provide for automated information and responses to inquiries. In this blog article, we’ll look at chatbots and their potential benefits for pension schemes.

Reduced costs and increased efficiency

Potential customers of pension schemes request information from employers, pension providers, and insurance companies in a variety of different ways, such as by telephone, inquiry forms (tickets), and email. Traditional inquiry processing methods are not only time-consuming, but also subject to risks such as duplicate processing and errors. Potential errors must therefore be identified and corrected, which in turn leads to longer processing times and higher costs. With an AI-based chatbot, pension providers can reduce costs and increase efficiency significantly. A “chatbot” (a combination of “chat” and “robot”) serves as a virtual assistant for pension schemes and interacts with users in natural language to provide information, answer inquiries, perform tasks, and even engage in simple conversations. Chatbots can respond more efficiently to user requests, save resources, and improve customer service. The AI also “learns” from corrections and continuously optimizes the system.

Chatbots “trained” in the respective pension scheme can answer basic questions, calculate individual pension rights, and offer personalized tips. They can also respond to specific requests, and make it easier for users to access relevant information. The important thing is that the chatbot be configured in accordance with the knowledge base of the respective employer.

AI chatbots: Machines that answer inquiries and trigger processes

Chatbots create considerable added value by automatically responding to inquiries and starting business processes. A “trained” chatbot can answer repeated inquiries, formulating answers that have been shown to be of the highest quality. A chatbot can also forward inquiries to a live chat system with specialists, providing the optimal solution for complex requests.

Chatbots answer questions from users on a variety of different topics, including pension rights, pension contributions, insurance benefits, and other pension-related issues. They can also provide the answers to frequently asked questions on pension-related topics, and thereby represent a comprehensive source of knowledge for users. In addition, chatbots can inform users of the current processing status of their pension inquiries or applications, as well as provide basic information on various pension options, insurance conditions, legal aspects, and training documents. Based on the information provided by the user, a chatbot can also offer recommendations to help the user choose the right pension options.

AI’s cognitive search integrates established and verified sources of knowledge, thereby enabling questions to be answered comprehensively. A chatbot can assist the user by carrying out certain processes associated with the pension scheme. Among other things, it may help the user apply for an exemption from contributions, report a long-term illness, or modify deferred compensation. For complex or specific inquiries, the chatbot can transfer the user to a live chat system with pension experts.

Benefits of chat and chatbot features

Pension providers benefit greatly by integrating chatbots into their customer service. In particular, chatbots help them meet the increasing demands of their customers:

  • Increased efficiency: Chatbots can perform repetitive tasks such as the provision of standard information and the clarification of frequently asked questions. This relieves the staff and allows for resources to be used more efficiently.
  • Participation: Partners can be integrated into the discussion seamlessly.
  • Inquiry statuses: Users can request the processing status of their inquiries at any time.
  • 24/7 availability: Chatbots are available around the clock, even outside regular business hours. Employees can therefore access information on pension schemes whenever they like.
  • Speed: Chatbots meet customer expectations for quick and precise answers.
  • Personalized tips: By analyzing user data, chatbots can make personalized pension recommendations. They can identify individual pension miscalculations and suggest products to help reduce (or close) the retirement gap.
  • Data analysis: Chatbots can collect and analyze data to identify trends and patterns in employee inquiries.
  • Cost savings: Thanks to the automation of recurring tasks, chatbots can help reduce the costs of offering support and services

Outlook: The future of inquiry management with AI

In the future, pension scheme administration will also be shaped by AI – a revolution that not only saves time and resources, but also significantly improves the quality of services. Pension providers and insurance companies will rely more and more on AI-based chatbots to automate their cross-channel inquiry management. Continuous optimizations will also occur as AI “learns,” thereby ensuring constant adaptations to new requirements. Chatbot technology will continue to develop to handle even more complex tasks, and to provide for seamless interactions between humans and machines. The resulting cost savings will be enormous. It is now believed that 80% of inquiries relating to pension schemes will be handled by chatbots as level 1 support in the future.

However, it should be noted that strict data protection measures must be in place during the handling of sensitive information. It will be essential that chatbots meet the highest security standards to create the required level of trust. Since pensions are a complex topic that also involve emotional aspects, chatbots must be able to respond sensitively to individual needs and make difficult issues understandable. In order to implement AI and chatbots, pension providers must develop a comprehensive strategy that takes into account both the respective legal framework and the needs of users.

Interested in learning more about how adesso can help with the digitalization of pension schemes? Feel free to contact our expert Jens Gustenhoven, a business developer at adesso insurance solutions.

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