As GenerativeAI (GenAI) continues to expand across the insurance and reinsurance sector, Elad Tsur, Co-Founder and CEO of Planck, explained during a recent interview with Reinsurance News how the technology can play a key advantage in helping to reduce loss ratios and bring more competitive rates to end customers.
In terms of loss ratio, Tsur explained that if organisations want to strive for optimization within their expense ratios, which is becoming very topical within the industry today given the current market environment, then it is essential that they do this while maintaining their loss ratios.
“When you automate and take an individual out of the loop and in some cases units, you need to ensure that you have something that can replace the person, because there was obviously a reason why they were part of it in the first place.
“You need to ensure that if you are replacing a person, you need to be able to mimic a person’s behaviours in some cases.
“Obviously GenAI technology cannot fully replace all of the work that another individual is doing, but many tasks can be automated while maintaining the loss ratios. And you do this by increasing your accuracy of the underwriting insets that are part of the underwriting model.”
Moving forward, Tsur also reflects on how GenAI can play a significant role towards bringing competitive rates to end customers.
He explained how the industry has a variety of insurtech carriers, such as Lemonade, Hippo, and Next, among others, that push the very advanced “easy to use” interfaces.
“You want to improve the way you interact with the market and doing it while maintaining loss ratios is very hard.
“But, when you apply GenAI not only are you improving the interaction with the market, you’ll also able to drop the loss ratio whilst doing that, and then you want to be competitive with the new ones.”
As GenAI continues to make headwinds across the industry, and more organisations continue to experiment and apply the technology, Tsur explains why he feels that more insurers and reinsurers should be applying the technology into their workload.
“I believe that almost in every area you look at, there is a way to improve it with GenAI,” he said.
“The technology may not have to fully replace how a company, or even a person does their work, but it can drastically improve your knowledge analysis and knowledge sharing within the organisation.”
