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No, AI Will Not Eliminate Insurance Jobs

Written by
Amrish Singh

The rise of generative AI has struck fear into the hearts of many. Whether you are an underwriter, an adjuster or an actuary, you may have worried that ChatGPT and other AI tools are coming for your job. However, you can relax: AI will not steal insurance jobs – rather, it will make them more meaningful, impactful and rewarding.

The Potential Is Staggering

Although fears of robots replacing workers may be overblown, generative AI is a gamechanger. McKinsey analyzed the potential impact of generative AI on work activities in around 850 different occupations. The analysis found that, by performing more than 2,100 types of detailed work activities, generative AI could result in productivity savings of between $6.1 trillion and $7.9 trillion annually.

The average worker spends a good chunk of the day carrying out routine and repetitive tasks. McKinsey says generative AI, along with other technologies, could automate work activities that eat up 60% to 70% of an employee’s time. For example, AI can summarize conversations and provide human agents with personalized insights.

Many industries stand to benefit, including insurance. In the insurance industry, McKinsey estimates that generative AI could account for 1.8% to 2.8% of total revenue – or about $50 billion to $70 billion. The highest impact may be in marketing and sales, customer operations, and software engineering.

How AI Will Revolutionize Insurance

While generative AI is still new, some exciting applications have already emerged. AI can:

  • Help insurers deal with lengthy legal documents. Insurance companies are inundated with demand letters and other legal documents that are often lengthy but require a timely response. Generative AI can help by summarizing key points and flagging issues that require human attention, facilitating a speedy initial response.

  • Boost customer support. Insurance customers call when they have a problem and want immediate assistance. Unfortunately, if all customer services representatives are busy, customers may end up waiting on hold. AI has the potential to change this. We’ve already discussed before how generative AI can help insurers prepare for catastrophic claim surges by auto-triaging claims and streamlining other processes. McKinsey says customer service support is one of the key uses of AI. It can enable self-service, reduce response times, support resolution during initial contact, and even increase sales.

  • Assist underwriters and claim handlers. Submissions often involve a lot of content. Unfortunately, it can be hard to spot irregularities and red flags. AI can help by summarizing and organizing information, flagging irregularities, and providing insights. Plus, the insurance industry is increasingly seeking to recruit new workers. Providing bite-size pieces of information may help organizations appeal to the TikTok generation that’s grown accustomed to quick consumption.

Dispelling Myths About Change 

The worry that technology will replace humans is nothing new. Quartz says automation anxiety began in the late 16th century, when Queen Elizabeth I is said to have rejected a patent for an automated knitting machine because she thought it would take jobs from women who earned a living by knitting. 

According to the Foundation for Economic Education, history has shown that technology actually creates jobs. Some professions disappear due to technology, such as the job of telegraph operator. However, technological innovation boosts other sectors, leading to the creation of new jobs.

Depending on your age, you might remember a time before the personal computer became commonplace. If you wanted to type a letter, you had to use an old-fashioned typewriter. It took a lot more time and mistakes were much harder to fix. Although some people feel nostalgic about typewriters, few people would want to go back to that. 

Generative AI may turn out to be much the same. It has numerous applications that can make daily tasks much easier. Generative AI isn’t going to replace you or your team – but, if you embrace change, it just might give you insurance superpowers.

Insurance Automation is the Future

AI promises to make the insurance industry more intelligent, efficient and profitable, and in the age of climate change and escalating CAT events, improved methodologies and performance can’t come fast enough.

By leveraging AI, the industry will:

  • Harness the power of data to better understand trends and exposures
  • Improve risk selection and pricing
  • Improve claim response, management and speed of resolution
  • Enhance insurance customer journeys and satisfaction
  • And the list goes on …

Humans will still be necessary, but many of the most mind-numbing tasks will be automated, making jobs more enjoyable and rewarding. 

If you’re ready to take your organization to the next level, Liberate provides everything you need for end-to-end automation that elevates the customer experience while making claims and underwriting processes more efficient. Learn more.