How generative AI will change insurance (and already has)

Everyone in insurance is dreaming about AI's potential (and questioning its limits).

So what's AI's current state of play in the industry, and where might it be going? Let’s take a look.

What are AI’s potential applications?

Speaking recently at the 2024 Digital Insurance Summit, Lena Chukhno, Chief Revenue Officer at Bestow, outlined some practical ways AI could help carriers.

Some of these applications are already in production, like algorithmic audience targeting and segmentation to help customers and agents find the best product fits.

Meanwhile, bolder solutions are in earlier stages of development.

Imagine a customer completing an application by having a conversation with it. On the other side of the table, agents may soon have AI help when it comes to field underwriting and product comparisons.

What’s already out there?

One area quietly undergoing an AI tech revolution is underwriting. While the technology behind AI is already baked into digital underwriting solutions in a narrow way, Bestow is pushing further by building interactive tools to offer direct support to underwriters.

“Medical records, like EHRs and APSs, vary in length from a few pages to a few thousand pages,” says Peter Olah, Bestow’s VP of Engineering. “Powered by generative AI, our Underwriter Assist tool parses these complex documents instantly to help save time and provide additional mortality protection.” Read more at Built In.

What are the compliance implications of AI tech?

With an “AI civil rights bill” being introduced into the senate, many organizations are exercising caution when it comes to the intersection of AI and the regulatory landscape.

The industry isn’t flying blind, though, as other countries have already established some legal precedents. Digital Insurance’s managing editor Kaitlyn Mattson recommends looking to the EU AI Act as a regulatory framework to help prepare for likely US regulations.

Additionally, individual states, as well as the National Association of Insurance Commissioners (NAIC) have established principles for the use of artificial intelligence (AI) by insurers. Several states have adopted the model bulletin in whole, and more continue to jump on board. Read more at Digital Insurance.

Exciting questions remain

Real success won’t come from simply investing in technology, but from those bold enough to challenge and push boundaries. So, what’s the next game-changing AI breakthrough in insurance? That might be up to you.