As artificial intelligence (AI) and connected technologies continue to make an impact across the insurance value chain, it is very clear that there is a significant opportunity for AI to intersect operational efficiency and customer service, however the insurance industry is still in the embryonic stages of knowing exactly what to do with Generative AI (Gen AI), according to INSTANDA.
Gen AI is a type of AI technology that contains the ability to create material such as images, music or text. The technology heavily focuses on creating new and original content, chat responses, designs, synthetic data, and much more.
A recent report published by INSTANDA, highlights how there is a blurring of lines, and that experts are calling for further clarity and cautious optimism to realise the benefits of AI as an “effective co-pilot.”
The report was conducted through a series of one-to-one interviews with 40 industry experts, including recognised global software vendors, insurance consultants, and leading insurers.
The report explains that AI and Gen AI has the potential to change the way consumers see, engage with and purchase insurance.
At the same time, experts also agree that AI will have the greatest influence on the areas that INSTANDA’s research also indicates are most valuable to consumers, which includes: product personalisation, greater choice and better claim processing.
But, one major call of action that the report highlights is for insurers to bring their data estates into order.
Experts acknowledged that the industry has vast amounts of data, however this is not necessarily translating into better outcomes for the customer or being realised at a risk management level.
INSTANDA warns that the insurance sector must find a way to utilise large quantities of data to drive innovation and improve decision-making, while also addressing the challenges around privacy and managing customer information at the same time too.
Moving forward, research from INSTANDA also shows that consumers are indifferent to the industry; they have neither a positive nor negative perception of the industry and are yearning for a more personalised experience.
INSTANDA noted that this signals a huge opportunity for insurers to better serve customers.
Moreover, UK and US consumer research findings highlight the need for a far more personal, frictionless customer experience, with 26% of respondents saying that they want to be able to make a claim easily, with 23% saying that they want to make policy changes on their own, and 21% wanting products that are personalised to them.
Tim Hardcastle, CEO & Co-Founder of INSTANDA, commented: “Our report has shown that there’s far too much friction between the customer and insurer across the value chain. Insurers know this and want to do better, but a shift towards a more personalised customer experience requires flexible technology and processes, which is easier said than done. Many insurers struggle to keep pace, as the technology that brought them to this point, is now unable to serve them for tomorrow. Embracing change and innovation, especially in collaboration with insurtechs, helps overcome these problems and positions it for growth for the future.
“Compared to five years ago, there is now a huge swathe of progressive insurers and insurtechs, including INSTANDA, working collaboratively. They are leveraging data for insight, creating ‘retail like’ feedback loops and processes to use this information to better serve the customer, and manage claims in a more efficient way. Right now, the key challenge facing the industry is to ensure it can keep pace with changing customer needs and expectations. This means adopting a new mindset – investing in new technologies and ways of working and being more open minded about partnerships. As a true core insurance platform, we work tirelessly to stay ahead of the curve. Using our unique no code technology, we not only help clients meet their customer needs, but pre-empt them, to help bring a better insurance experience to more people.”
