The insurance industry has been at the forefront of adopting artificial intelligence (AI) compared to other sectors. The potential benefits of AI, particularly generative AI, in transforming various processes within the insurance industry are impossible to ignore. Generative AI can automate routine tasks and free up underwriters to focus on strategic functions. In this blog, we will discuss how generative AI can transform the insurance P&C business and the skills needed for working in the AI and the P&C industry.
generative AI and underwriting.
Underwriting is one of the most overworked functions within an insurance enterprise. Generative AI can automate routine tasks, such as summarizing benefits documents, and free up underwriters to focus on more strategic functions. Raghu Chandrasekaran, SVP for cloud data for Randstad Digital, explains that underwriters are often overworked and spend a lot of time on administrative tasks that can be automated with generative AI. Pavan Goteti, VP of Innovation and BPM at EMC Insurance, commented that to help Underwriters at EMC, we are piloting a UW Assistant, a digital assistant that summarizes hundreds of underwriting manuals and guidelines.
Underwriting is often burdened with numerous time-consuming aspects of the insurance workflow. Raghu Chandrasekharan, SVP for Cloud and Data at Randstad Digital, notes that Generative AI presents an opportunity to automate many routine tasks, such as summarizing benefits documents, thereby freeing up underwriters to concentrate on more strategic functions. Pavan Goteti, VP of Innovation and BPM at EMC Insurance, highlights efforts to alleviate the workload of underwriters at EMC by piloting a UW Assistant, a digital assistant designed to summarize hundreds of underwriting manuals and guidelines.
generative AI and claims management.
P&C insurance companies can use generative AI to manage claims. However, the human element is essential, and the objective is to supercharge the claims representative, not replace them. Generative AI can help automate many of the routine tasks in claims processing, reduce error rates, and lower claims administration costs. The technology can also be used to provide hyper-personalized recommendations in customer service during the claims process, thus improving customer loyalty and satisfaction.
the future of generative AI technology.
Generative AI is here to stay due to the heavy investments from big players like AWS, Microsoft, and Google and the emergence of industry-specific generative AI companies. This technology has a lower barrier to entry compared to other technologies. Insurance companies and banks are at the forefront of adopting generative AI, and small and large companies are also adopting it. “At EMC, we believe that generative AI and other AI advancements are an evolution of tools that will impact the way we work,” Goteti explained. “Our position is to embrace these capabilities, using them to find innovative ways to streamline processes, provide exceptional customer service, and enhance team member decisions with better data.”
training and enablement for generative AI success in the P&C industry.
Broadly speaking, Generative AI skilling and enablement programs should implemented across the enterprise, covering different roles in leadership, business functions, IT/Technology, and Corporate functions. Such broad-based training and skilling initiatives with curated content matching the different personas will enable common understanding to identify and implement impactful use cases and ensure proper governance and guardrails are in place.
challenges of adopting generative AI.
Adopting generative AI comes with its own set of challenges, including getting pilots going, measuring benefits, and prioritizing use cases. However, focusing on customer service, agent productivity, and underwriting functions can help overcome these challenges. Timing and enablement are also important factors to establish a shared understanding of generative AI technology. Major SAS products will be generative AI-enabled, and custom applications will incorporate generative AI as much as possible.
conclusion.
Generative AI has the potential to transform various processes within the insurance P&C business. It can automate routine tasks, provide hyper-personalized recommendations in customer service, and free up underwriters to focus on strategic functions. However, adopting generative AI comes with its own set of challenges. Leaders need to be educated about what generative AI can and cannot do, how to explore and spot use cases, and how to put guardrails in place. Citizen development, training corporate departments, and learning languages like Python are also important. Focusing on customer service, agent productivity, and underwriting functions can help overcome these challenges.