While the insurance industry has traditionally been slow to adopt new technologies, Generative AI (GenAI) is beginning to revolutionize the sector, enhancing customer experiences, optimizing operations, and creating new efficiencies. GenAI use cases span the entire insurance value chain, from those already implemented and live today to visionary concepts poised for future adoption.
The second mouse gets the cheese
One advantage of lagging behind other industries in technology adoption is that the risks of implementation decrease as the technology matures. Insurers can learn from the common pitfalls and replicate successful use cases from competitors and other industries rather than relying on untested innovations.
After witnessing the rapid rise of GenAI, we’ve supported our clients in capturing value from this technology and have identified key questions that can increase the success probability of AI-related projects:
- Is the problem that needs to be solved clearly defined?
- Is the project solving real problems for its intended users, or is it merely a marketing play to showcase the latest technology?
- Is relevant industry knowledge adequately represented in the project team?
- Is the necessary data available to effectively feed AI models?
- Is there adequate infrastructure and a defined operating model & governance for managing data and deploying AI models?
How Insurers are leveraging available knowledge
Addressing these questions before (or during) a project can significantly enhance the likelihood of a successful implementation. Early adopters often begin with broad brainstorming sessions to identify potential use cases, but latecomers can skip the trial-and-error phase and focus directly on proven, winning applications. Here are some standout use cases poised for fast adoption:
- Enhancing customer service: GenAI enables personalized policy recommendations, automates customer inquiries, and improves overall customer experiences. Today’s AI-powered voice bots provide convenient, 24/7 client services without wait times, even understanding local dialects. These bots can handle over 30% of today’s call center volume, and for more complex issues, they gather preliminary information and schedule callbacks, enhancing customer satisfaction and call center efficiency.
- Automated claims processing and fraud detection: Claims make up a significant portion of customer interactions, especially in retail insurance. GenAI helps automate processes like coverage checks, increases straight-through processing rates, and detects patterns that indicate potential fraud. This frees up claims handlers to focus on high value tasks, reduces claims leakage and improves response times. For a client of ours, we recently assisted them with standardizing their claims management process. You can learn more about the project here.
- Improving customer understanding and retention: AI models can predict churn probabilities, identify at-risk clients, and support the definition of targeted retention strategies. Synthetic personas, created from CRM and policy data combined with third-party insights, allow insurers to test hypotheses and user scenarios, enabling the development of products and services closely aligned with customer needs.
- Enhancing regulatory compliance efficiency: GenAI automates tasks such as creating meeting minutes and consultation records, freeing agents and brokers to focus more on customer interactions. This not only improves operational efficiency but also helps ensure compliance with regulatory requirements while enhancing the overall quality of customer service.
- Accelerating legacy data migration: GenAI transforms data management by converting diverse unstructured legacy insurance contracts into structured digital assets. This AI-driven approach speeds up the migration process, improving data accessibility, accuracy, and decision-making while ensuring compliance with GDPR. We recently helped a large European insurer to speed up their contract data migration with the use of a custom GenAI tool. You can learn more about that project here.
Take the next steps in your GenAI Journey
Reach out to explore the possibilities of Generative AI within your organization.
Interested in learning more? Feel free to contact us. We support our clients from initial concept through to implementation and full-scale rollout of GenAI use cases across their organizations, helping to build data foundations and define operating models that capture business value from advanced AI solutions. You can learn more what GenAI Knowledge Management can do for your organization here.
