Every day we see headlines about Generative AI. For the insurance industry, this technology provides acceleration in many areas in which AI-based transformation is already underway. But, like any emerging technology, it also introduces new areas of risk.
In this insurance news analysis, abbey compton and i’ve joined Daria Lee Sharman For a discussion of the topics he highlights in his article, 7 challenges the insurance industry is facing with generative AI, We talk through the many questions being raised by technology across the value chain and industry sectors.
As Daria shared, generative AI offers new potential for the level of personalization carriers have long talked about achieving in underwriting. With generative AI there is more potential to augment human underwriters and improve employee experience and knowledge transfer.
However, the creativity and personalization that can be achieved by carriers using creative AI is also at the fingertips of every contender. Carriers will increasingly need to take steps to guard against plausible but fraudulent claims.
As the volume of claims increases, so does the need for innovation in claims. Generative AI holds great potential, but carriers and public sector entities must continue to innovate in other ways. For example, Insurance villages are popping up across Florida to help settle claims from Hurricane Ian and the new insurance support to save lives Seeks to use technological solutions to reduce the persistently high mortality rate despite a decline in COVID-19 deaths.
Generative AI is at an inflection point and is about to take off with the advent of Chat GPT. It will transform work and reshape business.