Solomon Philip is Shift Technology’s Head of Market Intelligence
Generative Artificial Intelligence (GenAI) is transforming the insurance industry. Let's explore its impact through three key dimensions: Leadership & Vision, Insurance Data & AI Expertise, and Real-World Examples. Organizations operating across each of these dimensions, and demonstrating skill and leadership within each, set themselves apart from the crowd of companies now experimenting with GenAI.
- Leadership & vision: This dimension embodies visionary guidance and the forward thinking needed to unlock GenAI's full potential. Insurers and insuretechs with the vision to harness the power of generative AI can empower their workforce, augment the capabilities of less experienced employees and equip them with the knowledge and guidance needed to excel in their roles.
- Insurance Data & AI Expertise: By emphasizing specialized insurance data and AI expertise, companies leverage vast reservoirs of data for informed decision-making and enhanced risk assessment strategies. Data, which until now has remained siloed and as a result unused (or under used), now becomes the engine that drives GenAI led IT transformations. GenAI facilitates IT modernization by extracting actionable insights from vast troves of data, especially valuable unstructured data that previously has been difficult to tap, thereby enhancing decision-making processes and operational efficiencies. Its ability to synthesize complex and/or unstructured information into useful intelligence, positions GenAI as a cornerstone of digital transformation initiatives within the insurance landscape.
- Real-world use cases: This dimension bridges theoretical concepts and tangible outcomes. GenAI clearly has huge potential, however tangible use cases in the short and long term will set insurers and insuretechs apart in a crowded marketplace of GenAI revelers. Real-world use cases serve as a compelling testament to the concrete benefits of GenAI adoption. Insurers are witnessing unprecedented gains in efficiency and accuracy up and down the claims value chain ranging from increases in fraud alert acceptance rates, reduction in claims processing cycle time, to more accurate liability estimations. Furthermore, GenAI excels in extracting information from large, heterogeneous datasets, offering unparalleled performance in tasks ranging from document analysis to risk assessment. Its adaptability and scalability make it a versatile tool for addressing diverse challenges across the insurance value chain.
Key Trends Driving GenAI Adoption
Driving urgency for the adoption of this disruptive technology is a convergence of key trends insurance executives must take note of. Through a recent survey of industry leaders, it became evident that these trends are not merely abstract concepts but urgent realities demanding proactive solutions.
- Labour Shortages: Over the next 15 years, 50% of the current workforce will retire. These experienced employees take critical business skills and expertise with them, leaving insurers at risk. GenAI can help capture, replicate and scale the experience, expertise and accumulated knowledge, and use it to train and augment newer, less experienced employees.
- IT Modernization: Studies show that 40% of enterprise IT costs go towards addressing technical debt. IT modernization initiatives that are meant to reduce technical debt do little beyond automation and/or cost reduction. With GenAI, such projects offer a lot more value because of GenAI’s ability to process and synthesize structured and unstructured data.
- Rise of AI: AI is a disruptive force, sparking innovation across industries. 70% of executives at large companies say they plan to increase their investments in AI in 2024. GenAI opens up new and innovative use cases previously not possible because of the inability to leverage unstructured data. In addition, GenAI technology is advancing rapidly, and use cases locked away due to technical infeasibility now have the potential of becoming a reality.
Conclusion
Generative AI heralds a new era of innovation in the insurance industry. As we embrace GenAI's transformative potential, we invite insurers to join Shift in this journey. Together, we can make insurance a seamless and intuitive experience for all.
SHIFT's Commitment
At SHIFT, we recognize GenAI's transformative power and are committed to integrating it across our product portfolio. Our deep understanding of AI technologies enables us to unify and utilize data effectively, driving efficiency and customer-centricity. By combining GenAI with traditional AI technologies, we aim to unlock the full potential of insurance data and real-world use cases.
Join us as we harness the power of Generative AI to revolutionize the insurance industry.
