Jarrod Davis
Authors name: Jarrod Davis November 2, 2023

Prepare to be amazed: the title of this blog is undeniably clickbaity, yet it's also 100% accurate. A single agent handles a staggering 20 million calls annually for a Fortune 100 insurance company.

To clarify, this agent's role is to identify and verify the caller, determine their intent, and then smoothly transfer the call to the most qualified agent. Still waiting for the catch? Well, it’s an AI Agent specially trained to handle a specific high-volume, low-complexity task. This remarkable AI Agent has achieved a 95% automation rate for ID&V and reduced AHT (Average Handle Time) by 1.5 minutes, which amounts to a 27% improvement. Importantly, the AI Agent didn't replace any human workers; instead, it enhanced their job satisfaction and made their work more fulfilling. Now, let's explore the compelling reasons why you should consider hiring AI Agents without delay."

Labor Shortages, Legacy Systems and Regulations

How do you eat an elephant? As the saying goes, one piece at a time. Insurance companies often feel overwhelmed by issues such as legacy systems, strict security and privacy regulations, as well as the challenge of finding and retaining staff. Not to mention the limited automation in your service processes. But that's no excuse for inaction. While there is never a shortage of reasons why something might be difficult, digital transformation is not an insurmountable challenge. But like our metaphorical elephant, you must do it one piece at a time. So, let’s get into the details.

What is an AI Agent?

An AI Agent is simply a useful metaphor for a cutting-edge AI-based software solution. It is designed to interact with customers and human agents in a natural, human-like manner and ultimately get things done. They consist of two main components:

AI AgentConversational AI: This allows the AI Agent to engage in real-time dialogues with users. It understands user inputs, processes them, and responds in a way that mimics human conversation. Conversational AI is adept at understanding context, managing multi-turn conversations, providing service across multiple channels in the same conversation, and providing relevant responses. Critically, it is integrated into your backend systems and can actually get things done, i.e. carry out service processes either partially or end-to-end.

Generative AI: While Conversational AI provides the business logic, structure, and guardrails, Generative AI produces unique, contextually relevant content on the fly. It's not limited to pre-programmed responses but can generate answers and solutions, or even creative content. With Conversational AI serving as the initial and exclusive point of contact for the customer, it can carefully select and tailor responses using precise prompt templates. This process ensures the Language Model (LLM) performs reliably without encountering issues such as hallucinations or other risks.

Together, these technologies empower the AI Agent to deliver a seamless, personalized, and efficient user experience. Whether it's answering queries, providing support, or guiding users through complex processes, an AI Agent powered by the perfect combination of Conversational and Generative AI ensures that all interactions are fluid, relevant, and indistinguishable from human counterparts.

What AI Agents Do:

  • Close staffing gaps by providing support
  • Address specific, focused tasks efficiently
  • Excel in repetitive, specific tasks without attrition
  • Boost overall automation rates and cost reduction
  • Alleviate tier 1 and repetitive tasks for human agents

What AI Agents Don’t Do:

  • DON’T replace people
  • DON’T replace your customer experience with technology
  • DON’T require benefits or expensive training
  • DON’T get tired of repetition and quit
  • DON’T require technical skills or training for you

Your Winning Recipe to Get Started

So how can you find exceptional use cases amongst all the red tape, complexity, and skepticism? Here’s how:

  1. Identify narrow, clearly defined use cases that account for significant costs (of money, human resources, time, or all of the above)

  2. Consider the impact of automating this work with an AI Agent.
    1. How will it improve the customer experience?
    2. How will it assist agents?
    3. What realistic goals can you set to improve it?
    4. How long would it take to achieve ROI?
    5. Is the ROI worthwhile?
  3. Once you have a small group of high-quality use cases, it’s time to decide. This may require management buy-in or talks with other stakeholders to ensure nothing has been missed

  4. Select one use case of the above

  5. Hire an AI Agent

  6. Let Cognigy design and train it on your specific needs, policies, use cases, etc.

  7. Go live within 3 months

So, what could an AI Agent do for you? Proven examples from our customers include:

  • Conversational IVR and intelligent routing
  • ID&V
  • GPT-powered FAQs
  • Detecting license plates
  • Collecting E-signatures
  • Document collection
  • Policy changes (upgrades/cancellations)
  • FNOL report (either partially or end-to-end)


In today's fast-paced and hurdle-rich insurance landscape, AI Agents stand as a beacon of innovation, bridging the gap between legacy challenges and modern customer expectations. These agents, powered by Conversational and Generative AI, not only streamline specific tasks but also enhance both the customer and human agent experience. As the industry continues to evolve, embracing AI Agents will be pivotal for companies aiming to stay ahead, ensuring efficient, personalized, and cost-effective service delivery.