As AI advances, so should our investment in human touch

AI gives us the gift of time. Invest that time in insurance agents to make the customer experience more delightful.

There will always be the need for human touch in insurance. (Credit: DIgilife/Adobe Stock)

The emergence of artificial intelligence (AI) in the insurance industry may have a transformative impact on agents and carriers. AI can enable us to spend less energy on time-consuming administrative tasks. It can synthesize large amounts of data, help us make decisions at rapid speed, and better assess risks.

When you boil it down, AI essentially gives us the gift of time. The question is: What do we do with this newfound energy? My suggestion: Invest in your agents which will make the customer experience more delightful.

The reality is, some customers are willing and eager to embrace AI, especially those of younger generations. But there will always be the need for human touch in insurance. In fact, almost half of customers prefer to interact with a human even after a policy is in place. It’s humans, after all, who build relationships, not AI. By devoting more time to our customers, we are better able to understand their unique needs and provide valuable advice and counsel.

AI technology in the insurance landscape

AI can serve as an ‘executive assistant’ by taking care of many administrative tasks. It’s capable of automating customer forms and policy renewals, extracting information from documents and maintaining detailed records. This can reduce wait times and get customers covered more quickly. For simpler transactions, AI can also provide customer support in an effective way that feels natural.

AI can also handle more complicated processes. It can provide real-time risk assessment and enable us to make decisions at rapid speeds. AI’s access to advanced data, such as telematics, remote sensors and satellite images, can help identify less overt patterns and risks that humans might overlook. Traditional risk assessments carry the potential of human bias, and error that can result in costly course corrections. AI’s enhanced data analytics and predictive capabilities involve less risk of error and can help us better assess the likelihood of a car accident or damage to a home. In turn, this enables us to provide more tailored coverage and better pricing for our customers.

The value of the human touch

While it’s come a long way, AI still has its limits. An over-reliance on automation can lead to automation bias. We can grow so dependent on automated alerts that when one doesn’t work the way it should, we fail to use our critical thinking skills to recognize the omission, leading to issues with customer policies.

Further, while AI may be able to analyze customer needs and provide optimal coverage, only an experienced insurance agent can impart the reassurance that clients often seek with these transactions. For instance, AI can provide a quote from Carrier A, which has the best coverage and rate. However, the customer may dislike Carrier A for political or environmental reasons. AI can offer an alternative, but without empathizing and providing additional context the way a live agent could.

Plus, discussing coverage needs for life’s uncertainties can be a sensitive topic. Talking with clients about their families, hobbies and overall lifestyle not only helps assess coverage needs, but also creates a foundation of trust. The bond that forms from these open and honest conversations can be critical for making important insurance decisions with confidence.

Servicing customers how they prefer

A recent study by Chubb reported that 65% of customers indicated there were some types of insurance they would only buy through traditional channels, such as a broker. While the future of insurance relies considerably on embracing AI, it relies even more heavily on transforming the customer experience to fit the needs of each individual. Today’s customers are seeking the convenience of an online purchase without compromising the level or type of service they desire. Combining the human element of an agent’s empathy and reassurance with the ease of secure digital tools enables us to reach a broader audience of consumers while engaging with everyone in the way they prefer.

The future of AI and insurance

Improvements to AI are happening rapidly, and it’s a race to see which company can expand its capabilities the fastest. But optimizing the use of AI requires more than just an investment in technology. AI should be leveraged to create a more delightful omni-channel experience for customers that includes human agents. AI enables agents to be better advisors and deliver a better customer experience. Over time, it can help empower consumers to make better informed decisions around their insurance needs. This combination of technology and human support will be key as we navigate the powerful capabilities still to come.

Bryan Davis is executive vice president and head of VIU by HUB. These opinions are the author’s own.

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