Amidst the swift evolution of customer expectations and ongoing digital transformations, insurance companies grapple with the challenge of harmonizing empathetic policyholder assistance with operational effectiveness. Intelligent Virtual Agents (IVAs) are proving to be a transformative solution, empowering insurers to deliver continuous support, optimize claims processes, and elevate policyholder contentment.

Let’s explore how IVAs are revolutionizing insurance services and why they’re becoming an essential tool for forward-thinking institutions.

The insurance landscape: Challenges and opportunities

Insurance carriers have long been pillars of support, but they now face increasing pressure to modernize their services while maintaining the personal touch that builds long-term trust. Key challenges include:
Rising policyholder expectations: Today’s customers expect instant, 24/7 access to policy information, claims status, and support across multiple channels.

  • Operational efficiency: Insurers must optimize resources—from underwriting to claims processing—to remain competitive without sacrificing service quality.
  • Regulatory compliance: Navigating complex, state-by-state financial and data privacy regulations while ensuring smooth operations.
  • Technology integration: Modernizing legacy systems and core platforms without disrupting existing services or policyholder trust.

IVAs offer a powerful solution to address these challenges, enabling insurers to enhance their service offerings while staying true to their core values.

“AI has changed consumer expectations to the point that customers now expect higher accuracy and reliability during the consumer journey, human-like conversations with AI bots… hyperpersonalized offers and communication, and on-demand products and interactions tailored to their [needs].”

Source: McKinsey & Company, “The future of AI for the insurance industry” (July 2025)

What are intelligent virtual agents (IVAs)?

IVAs are AI-powered software applications designed to interact with policyholders using natural, conversational language. Unlike basic chatbots, IVAs can understand context, intent, and nuance, allowing them to handle complex inquiries and transactions across various channels—web, mobile, phone, and SMS.

Key capabilities of IVAs for insurance companies include:

  • Natural language processing: Understanding and responding to policyholder queries in a human-like manner.
  • Multi-channel support: Providing consistent experiences across digital and voice channels.
  • Personalization: Leveraging policyholder data to offer tailored recommendations and support.
  • Seamless handoffs: Transitioning complex issues to human agents or adjusters with full context preservation.
  • Compliance management: Ensuring all interactions adhere to regulatory standards.

The value of IVAs for insurance companies

Average Handle Time (AHT) Reduction: For the calls that do get transferred to a human, the AHT is still lower. Because the IVA has already collected and verified the policyholder’s name, policy number, and intent, it saves the human agent 1-2 minutes per call on verification and data entry.

Sources: BCG, McKinsey
  • 24/7 policyholder support: IVAs enable insurers to offer round-the-clock assistance, addressing common inquiries such as policy coverage details, premium payment status, and requests for ID cards. This constant availability enhances policyholder satisfaction and reduces the workload on human staff.
  • Streamlined claims processing: By automating the First Notice of Loss (FNOL) and guiding policyholders through the initial application processes, IVAs dramatically streamline claims operations. This not only speeds up the process for distressed customers but also allows human adjusters to focus on more complex cases and high-touch relationship-building.
  • Enhanced fraud detection: IVAs can quickly flag and respond to suspicious account activities or claims submissions. They can analyze interactions for inconsistencies and immediately escalate high-risk cases, allowing members to report concerns without waiting for a human agent. This rapid response is crucial in preventing financial losses.
  • Personalized quoting and guidance: Leveraging data analytics, IVAs can offer personalized product recommendations, guide potential customers through the quoting process, and identify cross-sell opportunities. This proactive approach helps insurers add value beyond basic transactions and grow their business.
  • Scalable customer service: During peak times or catastrophic (CAT) events like hurricanes or wildfires, IVAs can handle massive surges in inquiries without the need for additional staffing. This scalability ensures consistent service quality and helps insurers manage operational costs effectively.
  • Regulatory compliance: Configured to adhere to financial regulations, IVAs help insurers maintain compliance in every interaction. They can be programmed to follow specific scripts for disclosures, ensure proper documentation, and flag potential compliance issues for review.

Implementing IVAs: Best practices for insurers

  • Start with clear objectives: Define specific goals, such as reducing FNOL call volume, improving quote completion rates, or enhancing policyholder satisfaction scores (NPS).
  • Focus on high-impact use cases: Begin with common policyholder inquiries (e.g., “Where is my claim?”) and transactions (e.g., “Pay my bill”) to demonstrate quick wins.
  • Ensure seamless integration: Work with IVA providers that offer easy integration with your existing core policy management systems, billing platforms, and claims databases.
  • Prioritize policyholder privacy and security: Choose IVA solutions with robust security features and ensure they comply with all relevant data protection regulations (e.g., HIPAA, PCI, GDPR).
  • Provide for human escalation: While IVAs can handle many tasks, ensure there’s a smooth process for transitioning complex or empathetic issues to human agents when necessary.
  • Continuously monitor and improve: Regularly analyze IVA performance metrics and customer feedback to refine and expand its capabilities over time.

Why RingCentral IVAs stand out for insurance

RingCentral’s IVA solutions are particularly well-suited for insurers, offering:

Easy implementation: A user-friendly interface and pre-built templates for common insurance use cases allow for quick deployment.

Omnichannel consistency: Seamless experiences across web, mobile, and voice channels, maintaining context as customers switch between platforms.

Advanced AI capabilities: Leveraging natural language processing and machine learning to understand and respond to complex policyholder inquiries effectively.

Robust security and compliance: Built on a secure cloud platform with encryption and features to ensure adherence to financial regulations and data protection standards, including SOC 2 & 3, PCI-DSS, and GDPR.

Integration flexibility: Easy connectivity with existing insurance systems and third-party applications through APIs and pre-built integrations.

Scalability: Cloud-based architecture that allows insurers to easily scale their IVA capabilities as needs grow, especially during peak events.

Conclusion: Embracing the future of policyholder service

As insurers navigate the challenges of digital transformation, IVAs offer a powerful tool to enhance policyholder experiences, streamline operations, and stay competitive. By providing 24/7 support, personalized service, and efficient problem-solving, IVAs enable insurance companies to maintain their commitment to customer-centric service while embracing technological innovation.

The time is now for insurers to explore and implement IVA solutions. With RingCentral’s advanced IVA platform, companies can confidently step into the future of financial services, delivering exceptional experiences that blend the best of technology with the human touch that policyholders value.

Ready to transform your insurance company’s customer service? Discover how RingCentral’s IVA solutions can help you achieve your goals. Check out our latest eBook on IVAs for Financial Services to learn more and get started today.

Originally published Nov 10, 2025