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.
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.
While generative AI is still new, some exciting applications have already emerged. AI can:
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.
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:
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.
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Your insurance customers want to engage with you using the most convenient channel at the moment – messaging/chat, SMS/text, email or voice. On any given day, a policyholder or broker could choose different communication channels at different times, depending on whether they’re in their car, at their desk or out for dinner. If your AI solution only works on one communication channel, you’ve got a problem. Your AI agent should communicate in every channel and move seamlessly between them – just like humans!
Technology shouldn’t be difficult to access. With Liberate’s Operator AI system, insurance professionals can use natural language to interact with highly-sophisticated AI programs. Operator AI is the streamlined, user-friendly way to leverage AI for underwriting and other insurance tasks.
Everyone’s talking about generative AI – but what comes next? Although generative AI is impressive, it’s just the tip of the iceberg of what AI will be able do. As technology continues to progress, AI is moving from generation to synthesis. This has major implications for insurance companies.