You have probably heard the term “artificial intelligence” in the news recently. Most likely because of ChatGPT: an intelligent, human like chat-bot developed by the firm OpenAI. Chat-bots have existed for a long time on the internet, but ChatGPT uses complicated cloud processing and algorithms to simulate human consciousness.
While this may seem scary to some it has great potential for commercial applications in the future; Particularly in the Insurance Industry.
Large insurance companies have been experimenting with programs like ChatGPT to streamline operations. Zurich believes the technology can be used to not only extract information from large documents (ie. large commercial policies) but it can also use statistical models to improve its underwriting and claims models (thereby reducing claim and premium costs). Other areas where AI could improve the industry are: fraud detection, risk management, and even customer service. Many personal lines insurers already use AI for things like windshield claims and bill payment.
There have been critics of AI in the industry, however. Worries of accuracy of information and even regulatory concerns. After all, how can you regulate a computer that can make millions of decisions in less than a second? Another large area of concern is customer service. Many insureds still prefer to speak to human beings, especially when it comes to complicated matters like Commercial Package Policies.
Want to learn more? Contact Goodman Venegas today and speak with an experienced commercial agent.
Sources Used:
1. Paige, W. (2023, March 28) Zurich is latest firm to explore ChatGPT tech use as insurance sector eyes AI benefits https://www.insiderintelligence.com/content/zurich-chatgpt-insurance-sector-eyes-ai-benefits
2. Kelly, P. (2023, March 23) Ethical Use of AI in Insurance Modeling and Decision-Making https://www.fticonsulting.com/insights/articles/ethical-use-ai-insurance-modeling-decision-making