Is AI going to replace Insurance Agents?

Impact of AI and automation on the insurance industry

Insurance organizations are only realizing a fraction of their AI potential, particularly for employee roles. Even as Accenture’s in-depth 2020 study shows that 68 percent of insurance companies are integrating AI in one or more business units, most are just getting started with new technologies.

ACCENTURE TECHNOLOGY VISION FOR INSURANCE 2020 REPORT

Humans with machines is the future of insurance

What we see is that by building the capabilities needed for AI and people to work together seamlessly, the demise of insurance agents and brokers is a premature prediction. AI does not threaten their jobs but in fact augments their current capabilities. Assistance from data mining will make for better decision-making processes, and free them up to focus on new and existing customers.

DELOITTE — ACCELERATING THE IMPACT OF AUGMENTED INTELLIGENCE IN INSURANCE

01 Chatbots and AI Assistants

Chatbots already aid in customer complaints and process simple transactions. They can be as simple or sophisticated as needed, from automatically setting appointments, answering FAQs, and/or providing ‘always available’ customer support. With interactions tracked they can be optimized for each individual customer in time. The customer will have less of a need to speak with a human representative and get a quicker response than from a live agent.

02 Underwriting and Claims Automation

Robotics and AI, more than anything else, can automate claims processing and document verification. It means that agents with skills in data analytics and machine learning will be in high demand. Automation and robotics will simply take over menial tasks in the future, allowing human personnel to focus on more complex tasks, such as managing portfolios and retaining clients. AI-based platforms like Roadzen are already adding value to every phase of insurance funnel and policy journey. By eliminating manual data extraction and data entry, a streamlined, fast, and error-free customer experience is delivered.

DELOITTE — ACCELERATING THE IMPACT OF AUGMENTED INTELLIGENCE IN INSURANCE

03 From Artificial to Augmented Intelligence

AI will improve human advisory abilities with the availability of more sophisticated data, tools, and algorithms, helping insurers provide better investment decisions for their customers. Simultaneously, the extensive knowledge of customers’ financial needs and appropriate insurance products, will help them play a critical role in evolving and refining AI. This integration between human experts and AI, augments each other, creating augmented intelligence.

DELOITTE — ACCELERATING THE IMPACT OF AUGMENTED INTELLIGENCE IN INSURANCE

Agents of Tomorrow

It seems unlikely that AI will replace humans in the insurance industry, especially in roles that require specialized expert judgment, and experience in claims management and underwriting. Even those dealing with customer enquiries and renewals will find that several activities are nuanced and multi-layered, requiring their judgment and expertise in various situations.

  • Diagnose and resolve trouble areas, develop new products, and enter new markets based on data-backed insights into customer trends.
  • Monitor patterns to spot threats early and take prompt action.
DELOITTE — ACCELERATING THE IMPACT OF AUGMENTED INTELLIGENCE IN INSURANCE

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