There is a concern in the insurance industry and beyond that generative AI, along with other forms of AI, will replace human workers. It is true that automating highly repetitive, rules-based tasks will change the nature of work. However, this rapidly developing technology presents an exciting opportunity for insurers to offer work that today’s workers find fulfilling and impactful. At the same time, it can create a better customer experience.

In other words, it will help insurers build businesses with people at their centre.

Until recently, interaction labour, such as customer service, has undergone some of the least dramatic technological interventions, McKinsey, wrote in its report ‘Generative AI is here: How tools like ChatGPT could change your business’.

“Generative AI is set to change that by undertaking interaction labour in a way that approximates human behaviour closely and, in some cases, imperceptibly,” wrote the report’s authors.

“That’s not to say these tools are intended to work without human input and intervention. In many cases, they are most powerful in combination with humans, augmenting their capabilities and enabling them to get work done faster and better.”

The many possibilities of Generative AI

Generative AI uses data to create original images, audio, and text. Here at Sprout, we’re using it to produce synthetic data, allowing new customers to start using our technology more quickly.

Insurers now have the opportunity to weave Generative AI into business practices across their organisation to help staff work better and faster.

Read more: 8 insurance functions that can benefit from generative AI

Employees will be able to focus on tasks that require creativity, critical thinking, and empathy. This will help insurers attract and retain claims handlers. In turn, customers will receive accurate claims decisions sooner and will be able to speak to a claims handler when they need to.

“Often, insurance companies lag behind when adopting new technologies. However, we are seeing an interesting market response to generative AI,” Roi Amir, Sprout’s CEO, said of our recent report on the subject. “Over half of the insurers we surveyed have already implemented the technology, or are considering doing so.”

In this blog, we’ll explore in depth some of the ways insurers can use Generative AI to create a people-first business approach.

1. Claims handlers can focus on high-value work

Claims handlers ensure policyholders receive timely and fair settlements. They are customers’ primary contact, but currently spend hours assessing claims, speaking to third parties, reading through customers’ documents, checking policy terms, and processing payouts. As a result, it can be difficult to hire and retain good claims handlers.

Generative AI speeds up repetitive tasks by assessing claim documents, checking claims against policies, and drafting responses to customers. Reducing the time claims handlers spend on repetitive tasks can enhance job satisfaction, in turn reducing burnout, and improving staff retention. They can spend longer speaking to customers and working on complicated claims, or claims that require a personal touch. They can focus on more interesting, high-value work, such as assessing intricate claims, negotiating settlements, and providing support to customers. 

Read more: How AI helps claims handlers provide a better customer experience

“It’s important to note here that speed isn’t always everything,” said our CEO Roi Amir. “In certain claims, empathy and quality of care are just as, if not more important than speed. Processing a claim for a stolen bike is very different from processing a major health claim. But by automating simpler, repetitive work, claims handlers have more time to focus on work requiring empathy.”

Generative AI can also be used to inform customers who are thinking of making a claim whether their claim is covered or not. Claims handlers waste less time working on claims that will ultimately be rejected. They will have to speak to fewer distressed customers who don’t understand why their claim was rejected.

2. Staff have greater access to training and performance feedback

Generative AI can serve as a powerful training tool across all areas of insurance businesses. Insurers can use it to create simulated scenarios and interactive training to provide immersive learning experiences. Staff can practise adapting to evolving regulations, emerging risks, and changing customer expectations.  

It can also review tasks and provide feedback. Employees receive personalised coaching and guidance, enhancing their skills and performance.

3. The customer experience is enhanced

Customer satisfaction is a key differentiator in the insurance industry. It directly impacts loyalty, reputation, and business growth. By improving speed, accuracy, and personalisation, generative AI can improve the customer experience.

Read more: How can help you unlock the potential of your claims department in 2024

Generative AI expedites claims processing, reducing the time customers have to wait for settlements. Claims handlers have more time to speak with customers when they have a query. Accuracy is improved, helping to make outcomes fairer for customers.

Generative AI also enables insurers to gain deeper insights into customer behaviours and needs. With this knowledge, they can offer personalised interactions and products. Products and services that are aligned with individual customer needs and risk profiles create a more satisfying and engaging experience.

Generative AI can help with fraud detection and prevention, which will boost customers’ trust in their insurers. It does this by generating synthetic fraudulent claims that can be used to train humans and automated claims processing platforms. It can also identify suspicious patterns and behaviours, alerting claims handlers to potentially fraudulent claims. 

Implementing Generative AI

In our recent report, we asked 100 UK and US insurers about their concerns over implementing Generative AI. 

Download the report: Generative AI in the Insurance Industry

The most common barrier was staff training. 

Ensuring staff are comfortable with the tools, and know how to use them effectively, will make all the difference in ensuring generative AI contributes to a people-first business. It will make a considerable difference to the overall success of implementation. Insurers and technology providers alike will need to ensure they have people top-of-mind when looking to unlock widespread adoption.

Generative AI offers insurers many opportunities to revolutionise their operations and enhance customer experiences. By making the most of this technology, insurers can improve efficiency, cut costs, reduce risks, and provide better customer service. Download the report to learn more, or book a call with a member of the team. 

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