Laggards no more: Insurers appear as early AI adopters
Nearly 60% of insurance companies surveyed reported already leveraging generative AI.
The insurance industry is viewed as slow to change, particularly when it comes to embracing new technologies, but companies across the insurance ecosystem have been diligently delegitimizing the characterization.
During the pandemic, the industry showed an ability to step on the gas when it comes to digital adoption and this hastened pace of technology implementation hasn’t waned. According to a survey of U.S. and U.K. insurance professionals by Sprout.ai, 59% of insurers with more than 100 employees are already using generative AI technologies, such as ChatGPT. Further, 27% of U.K. insurers are using generative AI in their processes, while 40% of U.S. insurers are doing the same, Sprout.ai reported.
The survey queried 126 U.S. and U.K. insurance professionals at companies with more than 100 employees during April 2023.
When it comes to use cases, marketing and claims are the two areas with the biggest opportunities to leverage AI, Sprout.ai reported, noting more than half of survey respondents highlight those two areas. Administration and underwriting functions were also key areas that could benefit from generative AI.
When it comes to claims management, one of the most important tasks is being able to identify and prioritize which claims in a collection need the most attention, Michael Combs, president and CEO for CorVel Corp., said, noting generative AI performs this task exceptionally well.
Adjusters are more like jewelers than miners, Combs said, explaining there is little value in having adjusters sift through large troves of data.
“The value is, once they have the specific information to be able to act on that,” he said. “They’re trying to find the most relevant and important information for these claims and determine which claims need action first.”
Combs gives pharmacy reviews as an example, as AI has the ability to shift through large volumes of data and extract the most important points.
“Our goal is to enhance the abilities of the adjuster, not replace the adjuster,” Combs told PropertyCasualty360.com. “An adjuster’s empathy and compassion, that human connection, you are not going to get that from generative AI.”
He said that over time, generative AI will evolve into a virtual assistant role for adjusters.
Training up on AI
As with any emerging technology, AI’s implantation won’t be without its challenges. Training staff on generative AI is the biggest concern, with 47% of survey respondents worried about bringing staff up to speed.
When it comes to the learning curve of AI, Combs said it “will be based on the elegance with which the technology is implemented.”
“You want to limit the amount of knowledge you need to be successful in the system. It should be intuitive and easy for people to come up to speed,” he explained. “People have higher expectations of systems than they ever did before.”
While the insurance industry’s love affair with AI seems to be off to a fast start, the technology isn’t without its risks. This begs the question if the industry should be heeding the Bard’s advice concerning loving moderately though. Too swiftly, so it goes, arrives as tardy as too slow.
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