How does P&C stand to benefit from GenAI?
How does P&C stand to benefit from GenAI? | Insurance Business America
Technology
How does P&C stand to benefit from GenAI?
KPMG report highlights the many use cases for the tech as it transforms the value chain
Technology
By
Kenneth Araullo
In its latest insights, KPMG details the role that generative artificial intelligence (GenAI) can play as the property and casualty (P&C) insurance sector faces more challenges.
The P&C sector is currently navigating two major challenges: the increasing severity of weather-related losses due to climate change, and the need to modernize technology to reduce costs and improve operational efficiencies.
Against this backdrop, the integration of GenAI is seen as a transformative approach that could revolutionize various aspects of the insurance industry, spanning from product development to claims processing.
GenAI is being explored for its potential to enhance numerous facets of the insurance value chain. This includes refining front-end processes like product development and distribution, improving core functions such as underwriting and claims, and optimizing back-end operations like reinsurance.
What can GenAI do for P&C?
In claims processing, KPMG notes that GenAI facilitates the rapid compilation of claims handling statuses and actions, speeding up resolutions within teams that operate across different states.
For police reports, the technology, when combined with natural language processing (NLP), can extract and analyze facts from a multitude of formats used by different city and state departments. In underwriting, GenAI collates relevant facts from new business application documents to assist in making more precise underwriting decisions.
GenAI also improves customer interactions by generating appropriate written responses to inquiries about products or application statuses and provides suitable responses to customer feedback or complaints, suggesting subsequent steps.
Furthermore, KPMG noted that it helps prevent duplicate payments and mitigates fraud risks by identifying duplicate claims for the same treatments or expenses and detecting forged or inconsistent documentation.
The implementation of GenAI not only aims to reduce costs but also seeks to optimize processes throughout the P&C insurance value chain. However, successful integration of GenAI into workflow processes requires a robust data foundation, active engagement from domain experts, and a user experience designed to facilitate seamless interactions between these experts and AI systems.
“GenAI can be a game changer for insurers,” Anthony Lee, principal, advisory at KPMG, said. “The potential of GenAI comes shining through when it’s integrated with a company’s core processes and delivers as promised: cost savings and breakthrough efficiencies.”
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