Chatbots are quickly gaining popularity in the insurance industry. Insurance buyers are getting used to making their initial transactions in cyber space before engaging with human advisors for more bespoke guidance. Chatbot technology is a quick and efficient way to get the insurance process started and a useful data collection tool for insurance carriers or brokers.
However, not everyone has had the luxury of gaining robo advice to get their insurance transactions off the ground. High net worth (HNW) individuals – with significant assets and equally substantial insurance needs – have been somewhat underserved in the digital realm… until now.
Kelly Klee, Inc., the digital insurance broker for successful Americans, announced on Wednesday the release of a first-in-kind hybrid human-robo advisor for HNW personal insurance. Consumers who visit the Kelly Klee website will be able to pre-select an expert human advisor before engaging with the chatbot.
The broker’s hybrid robo advisor will deliver a personal coverage score and detailed coverage analysis after the consumer answers 14 simple questions about their assets and lifestyle. Users who want to receive full coverage plans can then continue with their pre-selected expert human advisor, who will compare offerings from appropriate insurers.
“Up to this point, online insurance has been about quickly delivering plain vanilla products to the masses. Many of our clients spend over $10,000 per year on their policies and have significant assets to protect. Unfortunately, about 80% come to us with severe coverage gaps. They need expertise. That’s why we built the online coverage advisor with a seamless transition to licensed experts,” said founder and CEO, Jon Kelly.
“A lot of our clients have interesting and bespoke assets which they’ve collected over time. The robo advisor portion of our hybrid solution can identify those assets – whether it’s a unique painting or a valuable wine collection – and quickly tell the client insurance coverage is available and would be beneficial. The human advisor can then tailor the coverage and direct the client to the most suitable carrier.”
Kelly Klee’s hybrid human-robo advisor also benefits the brokerage in that it provides a detailed framework for the human advisors to work off. The robo advisor collects the primary data (assets, insurance needs etc.) and Kelly Klee’s brokers simply have to tailor coverage based on that framework.
“We’re a digital brokerage, so most of our clients are more tech savvy than the average consumer. But this hybrid human-robo advisor is an example of us going above and beyond our customer demands, and looking to provide the highest possible value solution before our consumers have to engage with us one-on-one,” Kelly told Insurance Business.
Funding for the innovative project came partly from the $4.5 million in seed funding the brokerage has been raising over the last 18 months. Investors participating in the funding include Gary Tolman, the former CEO of Esurance; David Fitzgerald, former head of business development for Google Compare Insurance; David Wong, former General Partner at Brentwood Associates; LowerMyBills founder Matt Coffin; Kelly Klee CEO Jon Kelly, and Langdell Investments.
This funding will also go towards expansion of Kelly Klee’s human workforce. The brokerage is planning to hire new human advisors to compliment the hybrid robo system. Kelly added: “If all goes to plan, we hope to have some very rapid growth this year.”
