Even insurance companies can get thousands of customer questions in one day. Some are simple. Others require careful review.
It is not always about having no information. It is usually being able to quickly find the right information out there and convert it into a straightforward answer.
And that is where generative AI in insurance finds application. Insurers are taking this opportunity to automate processes, but rather than automating a process that is heavily manual, they are also leading with automation in how employees find information, understand it, and communicate it.
The Process is Where the Real Problem Lies
Imagine a customer wants to know if the water damage can be covered by a policy.
An employee might need to look up policy documents, verify exclusions, and also refer to the circumstances of a customer with that of the answer. It takes time, even when the data is literally sitting there.
With generative AI you can structure that information and create a first draft of an answer. The employee can then go through the details before replying.
And it emphasizes eliminating wrong work rather than removing human decision-making.
Three Areas Where AI Can Help
Simplicity: The Art of Making Things Easier to Understand
The jargon often used in insurance documents. This can leave customers confused about what their policy actually covers.
Through AI, employees can start outlining policy phrases more concisely together with deductibles and frequent conditions.
For instance, a claims professional might leverage AI to convert numerous pages of detailed policy language into a brief synopsis that can be provided to the customer.
The last reason should also be verified.
Helping Employees Find Information Faster
Insurance information is stored across different systems, it can take time to search documents.
Field of generative AI can help in summarizing the documents and finding required information etc. It could free up employees to focus on tasks rather than routine searches.
The thing about it is that it is not just faster answers. So, less time wasted on switching tasks.
Supporting Better Internal Communication
Insurance companies have tons of teams, all the way from underwriting to claims to customer service.
To even draft internal updates, summarize meetings, and organize information for handoffs. This can, therefore, better facilitate the alignment of teams.
Better information for employees may lead to more uniform responses from customers.
What Should Insurers Avoid?
If the answer is not obvious, then AI should not be considered an authority that makes decisions without being checked.
Insurance involves confidential data and significant financial impact. For example, an AI could produce a wrong response and give the customer incorrect information or breach compliance.
Businesses must establish clear rules around the use of generative AI.
These safeguards are essential.
A More Practical Future
Believe it or not, the best use case for AI may be in the background. It assists employees in preparing information, doing less repetitive work, and having good communication.
This opens up more time for people to spend on the parts of insurance that require judgement, compassion, and deliberation.
In the end, the value of generative AI in insurance is in enabling better work rather than more work.
