The insurance industry is increasingly turning to artificial intelligence (AI) to enhance efficiency and improve operational processes, but experts caution that human expertise will remain crucial.
A recent survey conducted by RDT, a technology provider for insurers and managing general agents (MGAs), reveals that while the adoption of AI is progressing, its full impact is yet to be realised.
According to the RDT Tech Poll, a majority of insurance technology professionals report that their companies are already using generative AI tools. More than half of respondents expressed confidence that AI is being deployed in a way that benefits both customers and brokers.
Using AI for insurance efficiency
AI is proving particularly effective in customer service. Chatbots and virtual assistants are increasingly handling routine queries, offering customers quicker responses and freeing up human agents to focus on more complex matters. These AI-driven tools are able to provide instant guidance on insurance products and processes, ensuring faster, more streamlined interactions.
Insurance firms are optimistic about the future role of AI in areas such as personalisation of services (81%), fraud detection (66%), and underwriting decisions (53%). Additionally, AI is expected to transform the claims process by reducing costs, improving customer service, and accelerating claims settlements. The automation of routine claims tasks could shrink the typical processing time from days or weeks to mere minutes.
Human connection isn’t going anywhere
However, despite these technological advances, insurance professionals are clear that the human touch remains indispensable. Claims handlers are still necessary for resolving more complicated claims, and many customers continue to value empathetic, human interaction during stressful times.
The majority of respondents (88%) emphasised that AI should augment, rather than replace, human decision-making.
Joe O’Connor, deputy CEO of RDT, commented, “We are seeing promising strides in the adoption of AI within the insurance sector, but it’s essential to strike the right balance between technology and human expertise.
“AI can significantly enhance efficiency and customer service, yet the human touch remains irreplaceable for complex decision-making and empathetic customer interactions. Our industry must continue to innovate while keeping the customer at the heart of all advancements.”