When we think of artificial intelligence and how it applies to the business world, many of us think of how AI can automate mundane administrative tasks like taking notes, fact-checking, compiling meeting action items, etc. In fact, when asked how they use or would use AI in their work, many of this year's respondents said: Business Insurance The Breakout Prize winners profiled here describe their use of AI in this way: Other winners reported specific use cases in the insurance and risk management sectors.
Several of the winners mentioned that they are incorporating AI into their underwriting process. AI can reduce the time underwriters spend manually entering information to just three minutes. One winner stated, “AI will change my life and the lives of underwriters.” As underwriters seek more detailed data to better understand the risks and exposures their capacities support, several of the winners said that AI can provide critical insights into a company's risk profile, identify risk characteristics, and inform underwriting decisions on how to best support policyholders. Because AI sifts through data at high speed, it can even pinpoint the best risk transfer and retention options for an organization, another game changer for underwriters and brokers.
The potential benefits of AI extend beyond underwriting efficiencies. Several of the award winners suggested that AI could bring some stability to pricing. In the tough market of the past six years, underwriters were faced with a flood of data and a high volume of applications, which in some cases led to backlogs and delayed completion of renewals. While pricing for buyers is starting to improve and market conditions have eased in many areas, it is encouraging to hear that AI will enable data to be collected at a much faster rate, allowing insurers to better assess and price risk and model changes in the evolving risk environment.
AI is also helping to automate claims processing. At least one of the winners noted that AI is improving the industry's predictive analytics capabilities, providing claims personnel with decision support tools to allocate the right staff resources to specific claims at the right time. This reduces errors, flags claims that need further investigation, and prioritizes claims that require follow-up. This frees up staff time to engage with customers, resulting in a better claims experience.
But there are some caveats to adopting AI. Several honorees urged caution, pointing out data privacy concerns, the need to be selective about which AI platforms and products are used, and the need to scrutinize the input and output of generative AI systems to prevent bias and so-called “hallucinations,” where false or misleading information is presented as truth. Human relationships, which are at the heart of the insurance business, must remain at the forefront, the honorees said.
If this year's Industry Breakout Award winners answer correctly, AI will play an increasingly important role alongside brokers, insurers, and risk managers. Human interaction and connection will continue to evolve, and the industry's ability to attract talent will depend on offering career opportunities that evolve alongside AI. If this balance is struck, insurance buyers should also benefit from a vastly improved experience.
