We began using generative AI at my company, BriteCo, in 2023, with the creation of an AI customer service chatbot we named “Emma.” It enabled us to experience AI firsthand, including its capacity and limitations, and what it requires. As we built and executed the application, other potential business cases were obvious, and we expect AI to go far beyond where it is now, into other areas of our business.
See also: 3 Key Uses for Generative AI
Disruptive Potential
AI has long had disruptive potential for insurance. It could reimagine risk assessment, customer service, product development and fraud and overhaul claims processing, among other changes. A key value of the technology is its potential to help improve and streamline processes and crunch data.
GenAI goes hand-in-hand here. Its ability to create data, images and other content can change our industry. There has been an early explosion of its use in areas like customer chat and in supporting minor service requests and needs.
Market Value
Organizations have the ability to harness AI to improve everything from decision-making to discerning information, to serving employees, customers and other stakeholders. Many insurance companies are already moving forward with the technology and seeing benefits.
Our goal in using GenAI was to improve customer service efficiency and resolve customer needs faster. Emma resulted in significant improvement in customer engagement rates and question resolution. And it improves overall customer satisfaction while freeing up our live customer service team to focus on more in-depth customer needs. Today, we are experimenting with AI elsewhere in our company.
Broad Capability
Individuals, such as insurance agents and brokers, can leverage the technology today, as can insurance businesses of all sizes and types. There is a rise of new AI-powered tools that can serve as a starting point for smaller organizations or individuals.
All insurance leaders and professionals should explore AI and consider where and how they may be able to use it. A good starting point may be to consolidate and improve customer service efforts, or to empower you to make decisions faster.
Early Stage
Despite AI’s potential in insurance, the technology and what it can do is still at a very early stage. Real-world applications are sparse today and use requires heavy customization.
Obstacles, glitches and barriers consistent with new and early markets exist. Insurance organizations should not let this be a hindrance. AI could rapidly change in the future and early exploration today can help prepare companies and leaders for what’s ahead.
You can start small and experiment to test and learn before expanding your efforts. We took this approach with Emma, using an iterative process. We expected and planned for AI’s limitations and challenges.
Prospective Challenges
The insurance industry's extensive rules and regulations, together with risk aversion, could deter AI advancement in insurance. Full-scale adoption by market behemoths will likely take time.
But insurance leaders don't need to wait for others to lead the way. We can help create what we need.
See also: 5 Ways Generative AI Will Transform Claims
New Opportunity
New companies and ideas are on the horizon for AI and insurance, likely including agile companies that can potentially outmaneuver legacy brands and spark real, widespread change.
Nearly a decade ago, we disrupted jewelry insurance with technology. Insurtechs, including ours, brought major changes to how insurance is bought and sold in our world. Our company is as much a technology company as it is a jewelry insurance provider. High tech will only continue to be a key part of everyday life for consumers and businesses. Insurance organizations, professionals, investors and entrepreneurs need to adapt.
