By: Jurgen Hellweg, CEO, Western National Insurance
The ability of AI technology to conduct detailed risk assessments, expedite claims and analyse large datasets will lead to role-players in the insurance sector reassessing the role of brokers in the future. However, given the undeniable value of human connection as a tool to build relationships, offer tailored advice and aid negotiations, the future is one of symbiosis – a collaboration between man and machine.
AI and insurance: then and now
Prior to the most recent launch of generative AI, this technology was being used in various forms for years. By using AI, insurers have been able to automate certain contact centre functions, develop website chatbots and make use of machine learning systems to process data more efficiently. Pay-how-you-drive telematics programs and the use of drones to conduct property surveys are further examples of how AI is being leveraged by the insurance industry.
Today, brokers can use AI to learn more about the demographics of their client base. As a data analysis tool, it also provides invaluable insights on a client’s specific risk exposures. In future, these cases will expand to other aspects, including AI-assisted risk assessments that will help insurers build more customised risk solutions, reduce human error, expedite the claims settlement process and provide 24/7 customer service.
Enabling a more tailored service offering
Equipped with a clearer picture on risk provided by AI, brokers can get exceptionally detailed about understanding and servicing their clients, as well as their businesses. It will also assist brokers in dealing with more case-specific, complex risks that face specific industries. Brokers will be able to play a more prominent role in helping clients explore their options and make more informed decisions about their insurance cover and risk mitigation strategies.
Making the claims process fairer and faster
AI technology is particularly effective as a tool that can streamline the claims process. Its ability to process large volumes of data at the push of a button means it can detect anomalies, flag claims that are suspiciously high, and identify patterns in clients’ claims histories. It can also identify and prevent fraudulent claims and ensure consistency and reliability.
The importance of human intervention
AI, however, does have its limitations. If the data used to train an AI system is biased or incomplete, these systems may perpetuate the unfair treatment of clients. The final decisions made when paying out claims can’t be made by an autonomous program. Findings generated by AI need to be reviewed by human assessors. As intermediaries, brokers are key to ensuring the commitments of insurers to treat customers fairly are upheld.
Brokers will continue to act as mediators and negotiators between clients and their insurers. This aspect of customer service requires human-to-human interaction as well as relatability and will always be an indispensable part of advisory offerings. Trust and credibility are irreplaceable pillars. Many clients still distrust these systems and have concerns around the invasion of their privacy.
By applying an empathetic approach, brokers can interpret the benefits of different insurance solutions within the context of their clients’ businesses. This goes a long way in providing the insured with the choice and control they need to see the true value of insurance products rather than regarding them as grudge purchases. Here, as in other cases, brokers bridge the trust gap by nurturing the interactions that can build long-term relationships and rapport with clients.
