The integration of advanced technologies such as generative AI has paved the way for further evolution, offering improved efficiency, reduced costs and enhanced customer experience. Various AI applications are currently in use in the insurance industry, ranging from underwriting to claims processing. Speakers at the Insurance 2030 conference themed AI, the future revolution and quantum leap, discussed how generative AI can help and change business models, how insurers can leverage AI for more streamlined operations and how AI can enhance customer experiences.
“AI has been a top priority for companies who have done transformation projects in the last few years. 49% of said companies looked at future-proofing their organization. Out of this percentage, more than half of them use AI as a tool to deal with fraud management, improve their agents’ performances and for recruiting valid agents through AI,” said Oliver Wyman APAC head of insurance and vice chairman Chia Tek Yew.
Speaking about generative AI, Mr Chia said “In the last year, this idea about open AI and ChatGPT catapulted the whole idea of AI. You cannot have a conversation with a client without them asking you about generative AI. On the insurance side of things, we are already seeing a lot of efficiency- many global insurers and financial institutions are exploring on how to use AI for claims underwriting, decision-making processes and fraud management”.
Insurers ‘co-piloting’ with AI has been on the rise in many decision-making processes such as underwriting claims, recruitment and human capital decisions. One of the main challenge of insurers ‘co-piloting’ with generative AI is the level of data accuracy.
“It has always been a challenge with traditional AI because we don’t have enough data long enough for us to trust and make a universal decision. Even if we have the data, we don’t know if it is real or false data. This is also an area many regulators are concerned about,” he said.
While the world is adapting to the adoption of generative AI, the insurance industry is yet to utilize the benefits and include AI into its practice. Will the insurance sector allow AI to replace chat bots in insurance and live up to the transformational potential of re-inventing the insurance experience?
“2030 seems to be a magic number. We talk about 2030 climate change, 2030 for generative AI. At the pace of activity today, I think we will see generative AI becoming a mainstream product in 3 years. We see a momentum building up, we see the efficiency drivers.
“The ecosystem is still nascent but the good thing is, because it involves big technology organizations, the ecosystem will grow very quickly. The opportunity is massive and insurers need to prepare for the future which will inevitably involve AI,” he said.
The Insurance 2030 conference: From Science Fiction to Reality organised by Asia Insurance Review runs from 23 to 24 August 2023.
