The accelerated adoption of artificial intelligence (AI) technology is seen as key to driving efficiency and operational improvements in the insurance industry, but the industry is only just beginning to realize the impact that AI and automation can bring.
A recent RDT technology poll of insurer and MGA technology experts found widespread cautious confidence in the adoption of AI, with insurtech experts highlighting AI’s potential to improve insurance processing and platforms for the benefit of customers and brokers.
The majority of respondents (61%) said their organization is currently using generative AI, and more than half of insurtech professionals (52%) expressed confidence that the insurance industry is adopting AI in a way that will sufficiently benefit customers and brokers.
AI is already bringing about a sea change in customer service. Using virtual assistants or chatbots for common inquiries helps customers get faster solutions. Chatbots facilitate instant customer interaction, answering questions and providing guidance on insurance products. This allows businesses to focus on serving more complex inquiries and customers who need more support.
Insurers cited AI’s potential in personalizing service (81%), combating fraud (66%) and assisting with underwriting decisions (53%) as the most important ways they expect AI will help improve their company in the future.
Claims processing is also a focus for AI, with the hope that AI will reduce processing costs, improve customer service experiences, and reduce claims processing times from days or weeks to minutes.
Despite these advances, the human element remains crucial: claims processors are still essential to finalize complex claims decisions, and many customers crave the human touch and empathy, making thoughtful integration of AI into customer service frameworks crucial.
Tech experts agree that a cautious approach is ideal: The majority (88%) still value human expertise and are in favor of AI augmenting human decision-making rather than replacing it entirely.
Joe O’Connor, deputy CEO of RDT, said:
“The adoption of AI in the insurance industry has made promising progress, but striking the right balance between technology and human expertise is essential. AI can greatly improve efficiency and customer service, but the human touch is essential for complex decision-making and empathetic customer interactions. Our industry must continue to innovate, keeping the customer at the heart of all progress.”
