How carriers should be thinking about the latest AI tools?
Generative AI is everywhere. The internet is flooded with images created in Midjourney, a leading AI image generator, and articles created using ChatGPT, the AI text generator that brought generative AI into public consciousness. The world’s leading tech brands are racing to find innovative applications for this exciting new technology. All the while, companies across industries look for ways to implement generative AI to improve operational efficiency and stay ahead of competition.
For insurance carriers looking to understand these tools, it can be difficult to determine which programs will be useful, and which are just a flash in the pan. While it is important to stay on top of current technology for its competitive advantages, AI should be approached with care.
Let’s look at some of the key questions insurance providers should be asking themselves as they seek to adopt the latest AI tools.
What is generative AI?
Put simply, it is AI that can generate text, visual and audio content from a simple prompt or questions. By analyzing large volumes of source materials, generative AI can learn and emulate the ways humans write, speak and make art efficiently and with a high degree of accuracy.
These outputs are usually unstructured, but they can provide a stunning amount of content that is relevant to the prompt or question. For the output content to be useful, a person needs to come in and refine what has been generated. Luckily, generative AI is easy to use, making it highly versatile and accessible to anyone who can ask a question or think up a prompt
How can carriers use generative AI?
One way adjusters can utilize generative AI is in making a preliminary estimate using the information they have gathered during FNOL. Once the AI has compiled and written out all the information into a loose estimate, the adjuster can refine and correct as needed.
This may save adjusters valuable time they can use to focus on more complex claims or increase the number of claims they are able to process in a day. AI can help accelerate the claims process by removing some of the simpler more monotonous tasks, leaving the adjusters time and bandwidth to give more complex claims the time and care they deserve.
This technology also has a continued opportunity to support customer service representatives as well. For instance, an algorithm could be created to give detailed answers to policyholders’ most asked questions. Instead of receiving a generic preloaded answer, generative AI could answer more specific questions with increased granularity. In this way, customers can get quick, more personalized answers to questions without having to contact their provider. In addition, customer service representatives are then free to help with more involved questions
What are the drawbacks of generative AI?
Like any new technology, generative AI isn’t perfect and there are a few significant risks that carriers should investigate before adopting.
Since generative AI produces content based on thousands of existing examples, there is a chance that generated content may infringe on copyright, trademarked or patented materials. This can pose a significant threat to your business and should not be taken lightly. It is important to be deliberate in your prompts and always review the content thoroughly to ensure quality.
Security and privacy are also a concern. Generative AI tools learn from input content, meaning they are incorporating information into its foundation, including sensitive information. This could infringe upon the the privacy of your policyholders and adjusters and lead to potential security risks for your proprietary data
What are the next steps?
That just leaves the question: how do I make generative AI work for my business? Well, there are a few things that insurance executives should be taking into consideration.
It is true that many of the generative AI tools available today are free — making the barrier to entry virtually nonexistent. However, carriers should avoid rushing into the widespread adoption of new technologies. Start small and work up to larger utilization.
Customer service could also be a concern for some carriers. While there are some obvious advantages to AI in customer service, some claims still need to be handled by empathetic adjusters who have the policyholders’ best interests at heart. AI can refine the customer experience in some instances but in others—nothing can replace the human touch policyholders expect from quality customer support.
Generative AI is an ever-evolving topic that doesn’t show signs of slowing down. The carriers that have the most success with Generative AI will be those who examine their existing workflows and incrementally introduce the technology where it will best serve employees and customers.
