Why Generative AI Will Change the Frontline of Insurance Forever
Now is the time to start making moves in preparation for the widespread adoption of generative AI.
By Jonathan Tushman
Aliens have landed on planet earth. Figuratively speaking, of course, but that is how big of a deal the introduction of ChatGPT was to the world, our everyday life, and the workplace. As we move from the initial “shock and awe” phase to putting the technology to work, generative AI is causing ripples across every industry akin to the industrial revolution. The insurance industry is no exception.
From giving frontline agents superpowers and improving customer experience, to reducing costs and increasing customer satisfaction, generative AI is bound to completely change how the business of insurance is done — and the carriers that lay the groundwork now will be the ones to come out on top in the years ahead.
What’s the big deal?
While we saw the internet, PCs and smartphones bring major changes to how people live and work over the past several decades, those technologies do not compare to the disruption of generative AI; it represents the most radical sea change we’ll likely see in this generation. Just like people reminisce now about life prior to the internet, we will soon be wondering how we ever lived without generative AI.
This is good news for the frontline of insurance. For one, the technology, when used correctly, can be surprisingly empathetic–a necessity for our industry. We are still in the early stages, but generative AI has already demonstrated clear opportunities to empower frontline workers to be better at their jobs and more efficient, freeing up time to focus on higher level issues with bottom-line impact.
It’s all about the data
In simplest terms, generative AI is unmatched in its ability to take conversational data, codify it, and turn it into a structured database. This will be advantageous for the insurance industry, which relies heavily on communication and therefore generates an abundance of conversational data (from phone calls, texts and emails across all parties in the ecosystem). The ability to turn it all into a structured database instantly will be a game changer for creating policies, rectifying claims, improving customer satisfaction and so much more.
Certain data and insights generated through conversations over time might indicate, for example, that a policyholder is unhappy or that a question has been left unanswered for too long. Access to this type of real-time insight via generative AI allows for real-time coaching — where the technology can promote things like automated in-message insights or next-best actions — to help ensure a more positive and seamless experience.
Also, let’s face it — there is a staffing shortage in an industry with a high customer turnover rate. This has traditionally been a recipe for disaster, where widespread knowledge gaps can cause inefficiencies in the claims process that negatively impact experience. However, with generative AI, adjusters can easily be prompted to ask the “next-best question” – saving time and frustration for new employees that are still ramping up, tenured employees that simply have too much on their plate, and the customers on the other end of the phone.
Another opportunity lies with respect to first notice of loss. When a customer has been in a collision and wants to tell their story, they want to be heard. They want to share every detail about what happened to them – e.g., how the accident happened, if their car was towed and if they were injured. The agent’s job in that interaction is to gather information to figure out how to best triage and route the claim. The traditional process of the agent distilling this information to determine what services are required ultimately needs to be turned into structured data. Generative AI can automate this process, freeing up the agent’s time to focus on providing the best possible experience rather than mundane tasks.
In general, generative AI can be used to gain a clearer understanding of where good and bad conversations are happening. Knowing the characteristics of conversations on either side of the spectrum and the ability to connect that information to loss run data — can allow carriers to right the ship on any negative experiences before it’s too late. Again, going back to the coaching opportunity mentioned above, adjusters can get immediate insights into what they should be doing at the beginning of the conversation to positively impact the experience throughout the rest of the process.
How to get started
Now is the time to start making moves in preparation for the widespread adoption of generative AI. Talk with your product, innovation, IT and legal teams about how they are thinking about incorporating the technology into your organization’s business processes and product offerings, and also how they are planning to ensure privacy and security. And start playing around with ChatGPT, Bard, and other players to familiarize yourself with the technology. Experiment, ask tough questions or simulate claims-related conversations and use that knowledge to bring new ideas to the table within your organization.
The insurance industry is notoriously cautious and not often seen as an early adopter to new technology. Let’s debunk that notion when it comes to generative AI.
Jonathan Tushman is the Chief Product Officer at Hi Marley. A data and intelligence expert with experience scaling venture-backed startups, he is helping Hi Marley deliver the world’s first conversational network in P&C insurance. Tushman is a graduate of Harvard Business School.
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