Insurance News: The generative AI opportunity and importance of responsible implementation
As with any new technology, as well as the opportunities it opens up, there are concerns about unintended consequences of generative AI and the need for responsible implementation. We were delighted to be in the hotspot usually claimed by Kenneth Saldanha in this episode of Insurance News Analysis to discuss this important topic and were delighted to be joined by Bruce Hentschel, a luminary in the industry.
We discussed a story about a 76-year-old man in the UK who had his claim denied recently after a house fire because he failed to tick a box on his policy application. This unfortunate incident emphasizes the importance of insurers understanding their customers, including the significant changes in population demographics, and designing application processes that effectively convey the significance of the information being collected and how Gen AI can play a role.
We discussed how instead of relying on customers to identify previous claims, generative AI can analyze data and present customers with validated information for confirmation.
We also discussed the opportunity in providing insurance policies to cover the ways in which generative AI can go wrong. Responsible AI is the key to harnessing the power of generative AI while mitigating risks. Insurers must keep humans in the loop and use AI as a tool to drive insights, automation, and higher levels of service. Learning from the framework of cyber insurance, insurers can focus on specific types of losses initially and gradually expand coverage as the market evolves. Striking a balance between risk management and leveraging the capabilities of generative AI is crucial for long-term success.
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Disclaimer: This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors.
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