The buzz around implementing AI in businesses, particularly in the insurance industry, has been increasing over recent years. While staying updated and evolving with the times is essential, it is also important to recognize the value of human processes within an insurance company or brokerage.
Current Implementation
The capabilities of AI are already being utilized in the insurance industry to streamline processes. Its uses include sifting data, risk assessment, and fraudulent claim recognition. AI increases efficiency in these areas by reviewing large quantities of data in less time. Machine Learning is used to correlate risk factors and other characteristics to identify high-risk situations. AI is also used in front-facing operations, such as chatbots and other contact lines.
Forecasted Use
AI will continue to evolve, and its potential to automate other aspects of the insurance value chain will continue to grow as well. AI’s potential to increase efficiency is where AI will be most beneficial, especially in the following areas:
- Claim payments
- Claim analysis
- Underwriting
- New product development
- Customer Interactions
AI offers many promising applications in the insurance industry. However, it is important to recognize that human expertise remains necessary. AI cannot replicate the decision-making and situational awareness of an experienced insurance professional. For optimal efficiency, AI can act as a supplemental tool to employees who understand its strengths and limitations.
Complying with Regulations
Although AI presents many advantages, several restraints prevent widespread implementation. The rapid growth of AI in this industry has outpaced the development of necessary regulations that need to be formed. Therefore, the use of AI should be closely monitored by chief officers to ensure ethical use is prioritized, and there is emphasis on its role as a supplemental tool.
The Flip Side
One of AI’s attractive qualities is its accessibility; however, it is also the most dangerous. While insurance professionals can use AI to enhance efficiency, cybercriminals can also use it to identify targets and automate cyberattacks. Because technology will only continue to advance, cyber insurance is crucial to keeping your business protected.
At Callahan Risk
Our priority at Callahan Risk is our clients and the safety of your business. We recognize AI’s strengths and dangers and value the human element of the insurance process. We have long-standing, close relationships with our carriers and work collaboratively to provide our clients with the best policies and prices.