We see headlines about generative AI every day. For the insurance industry, this technology offers acceleration in many areas where AI-driven transformation is already underway. But like any new technology, it also brings with it new areas of risk.
In this insurance news analysis, I’m joined by Abbey Compton Daria Lee Sharman for a discussion of the themes she highlights in her article, 7 Challenges the Insurance Industry Faces with Generative AI. We discuss many of the questions that technology raises across the value chain and industry segments.
As Daria shares, generative AI offers new potential for the level of personalization that insurance carriers have long sought in underwriting. Generative AI offers greater potential to support the human underwriter and improve employee experience and knowledge transfer.
However, the creativity and personalization that carriers can achieve through the use of generative AI is also available to every applicant. Carriers must take steps to protect themselves from increasingly plausible but fraudulent claims.
As the volume of claims continues to rise, the need for innovations in the event of a claim also increases. Generative AI has great potential, but network operators and public institutions must continue to innovate in other ways. For example, Insurance villages are popping up all over Florida to help pay for damages from Hurricane Ian and the new ones Insurance collaboration to save lives is trying to use technical solutions to reduce persistently high mortality rates, even as the number of COVID-19 deaths has declined.
Generative AI is at a tipping point and is on the verge of a breakthrough with the introduction of Chat GPT. It will transform work and reinvent business.
