Exploring the buzz around generative AI for insurers

A look at the potential impact of generative AI on the P&C insurance industry.

By offering helpful and relevant support, GenAI can generate interest and establish connections with potential leads, it could ask relevant questions to qualify leads and gather necessary information. Photo: AddMeshCube/Adobe Stock

Everyone wakes up today to the transformational potential of Generative AI (GenAI), the technology that underpins the talk of the town – ChatGPT – which gets 1.8 million visits per month. ChatGPT had 100 million active users just two months after its launch, making it the fastest-growing application. This jaw-dropping rate of growth is unrivaled. By comparison, it took Twitter more than two years to reach this number.

While the world is adapting to the adoption of GenAI, the insurance industry is yet to utilize the benefits and move from hype to practice. Is GenAI going to replace ChatBots in insurance? Or, will it live up to the transformational potential of re-inventing the insurance experience?

How can, and should, P&C insurers harness GenAI?

GenAI can be leveraged in various ways within the domain of Property and Casualty (P&C) insurance to enhance customer experiences and improve operational efficiency, leading to prudent insights. Let’s look at the value that GenAI can provide for each of these areas.

Customer experience

Operational efficiency

Insights

Is there any trouble in paradise?

It is essential to note that the method used to collect data for training GenAI should comply with relevant data protection laws. To ensure compliance with data protection regulations, organizations should take appropriate measures to obtain necessary consent, handle data securely, and provide transparency to users regarding the purpose and usage of their data. Respecting privacy and adhering to legal requirements are essential considerations when deploying AI models.

The road ahead

By integrating GenAI into various aspects of P&C insurance, insurers can improve customer satisfaction, automate routine tasks, reduce costs and enhance overall operational efficiency. As with any transformation technology, GenAI also comes with its own set of challenges. However, the technology is here to stay, and the time to adopt is now. Insurers will do well to utilize the power that GenAI provides them and transform themselves into more efficient and effective organizations.

Ramanujam Venkatesan (Ramanujam.Venkatesan@cognizant.com) is Head of Insurance Consulting, India, at Cognizant.

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