Generative AI insurance trends affect every line of business and part of the insurance ecosystem, including independent agents and brokers. Technological advances have forever changed how the risk and insurance business operates. While innovation is often positive it also brings new risks to consider.
Read on to learn about how generative AI is changing the face of risk and insurance for independent agents and brokers.
Generative AI Insurance Uses, Risks, and Opportunities
The NAIC defines AI as “a technology which enables computer systems to accomplish tasks that typically require a human’s intelligent behavior.” In the insurance industry, AI is being used for many different purposes — with more rolling out every day.
Generative AI can consume large amounts of data, analyze it, and even make decisions based on what it learns. Here are some examples of its current use cases in the insurance lifecycle:
- Reviewing and sorting through information and returning reports.
- Running customized models.
- Breaking down data into consumable insights based on user requests.
- Automating routine tasks and workflows.
- Creating customized communications, like marketing emails.
Risks and Opportunities of Generative AI
Risks and rewards often go hand-in-hand and generative AI is no different. When new technology is introduced, new concerns arise like privacy issues, data security, inherent bias, and consumer protections.
Like many other emerging trends, legislation around the use of generative AI is lagging behind its adoption. This means insurers and others using the technology must carefully consider the risks and rewards.
The NAIC has developed its Principles on Artificial Intelligence (AI) to help the insurance industry manage this emerging risk. While insurers are not legally bound to follow the NAIC’s guidelines, it is a starting point for the industry. The guide focuses on accountability, compliance, transparency, and fair interactions, which are all basic tenets of the insurance and risk world.
In addition to reviewing and considering the NAIC’s Principles, insurers and others in the insurance industry can take other proactive steps while exploring generative AI:
- Decide to build or buy. Some companies buy out-of-the-box software solutions from vendors while others build their own custom solution in-house. There are benefits and drawbacks to each option.
- Partner with an experienced vendor. Many insurers, agents, and brokers will decide to work with a software solutions partner when they explore generative AI. With many different options on the market, looking for a vendor partner with experience and a great solution makes sense.
- Set a strategy and goals before investing in software. Decide how you will use AI and other technology before implementing the software. Having goals and a set strategy means your team can be efficient while working towards meeting deadlines. Without a strategy, you risk wasting time and money.
- Be transparent about how you use data and technology. Consumers expect honesty and transparency from companies they do business with relating to data privacy and usage. And when you add new technology, you should be sure your processes and workflows are transparent.
- Start small. Some of the best projects and implementations start on a small scale. Test and rework your solution to get the best results. Sometimes starting with a small roll-out makes the most sense for the available resources.
Consider Lead Generation Packages Along with Generative AI
Try adding a lead generation and nurturing service to your agency along with your generative AI investment. As an agent, you’re always looking for your next lead. With exclusive lead generation packages available through the American Agents Alliance, you can access quality leads to enroll in your marketing campaign.
Check out our exclusive lead generation programs today.