Generative AI is going to have a transformative impact on insurance
A recent survey by Celent reveals that by the end of 2023, half of insurers say that they’ll have tested generative AI (gen AI) solutions in the form of large language models (LLMs).
For a technology that has only been in the public eye for 12 months or so, the drive for adoption by the insurance industry has been remarkably rapid. But what we’ve seen so far is merely the tip of the iceberg, with gen AI’s impact only just beginning to make itself felt.
Looking forward, the potential for gen AI to transform the insurance industry is huge. It will be able to shoulder much of the burden of routine work – and more – that’s common in the industry today. Take claims assessment. An appropriately trained LLM will be able to interpret an event in the context of even the most complex contracts and determine a claim’s validity (or not) within seconds. This will allow, for example, many insurers to complete nearly 100% of missing claims information from complex submissions, which is expected to generate significant savings from greater operational efficiency and lower claims costs.Transforming insurance front to back
Gen AI’s impacts will extend to many other areas of the industry. For example, it can be used to analyse vast quantities of data to provide simple, accurate summaries to underwriters as they make their assessments. Meanwhile, other functions, such as marketing, will also see gen AI completely change the art of the possible. It will be able to take standardized product and service content and blend it with personalized customer information to create truly bespoke communications at scale.
