Every day we see headlines about generative AI. For the insurance industry, this technology offers acceleration in many areas in which AI-led 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 are joined by Daria Lee Sharman for a discussion of the topics she highlights in her article, 7 challenges the insurance industry is facing with generative AI. We talk through many of the questions the technology is raising across the value chain and industry segments.
As Daria shares, generative AI offers new potential for the level of personalization carriers have long talked about achieving in underwriting. There is greater potential with generative AI to augment the human underwriter and improve employee experience and knowledge transfer.
However, the creativity and personalization that can be achieved by carriers using generative AI is also at the fingertips of every claimant. Carriers will need to take steps to guard against increasingly plausible but fraudulent claims.
As claims volumes continue to rise, so does the need for innovation in claims. Generative AI has 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 collaboration to save lives seeks to use tech solutions to bring down persistently high mortality rates even as COVID-19 deaths have fallen.
Generative AI is at an inflection point and about to take off with the advent of Chat GBT. It will transform work and reinvent business.