Nowadays, AI is being utilized in insurance for various workstreams:
- Underwriting and Risk Assessment: AI tools help companies create personalized risk profiles and utilize predictive analytics for determining the level of risk associated with insuring a particular individual, property or entity.
- Improved Claims Processing: With Gen AI, manual process interventions can be minimized since this technology can apply more specificity to business rules and therefore, it also delivers more reliable results.
- Customer Service and Engagement: Nowadays, companies with AI-powered chatbots provide human-like interaction and conversations which results in improved accuracy and faster decisions.
- Ensuring Data Confidentiality: Gen AI allows users to implement privacy-preserving techniques like federated learning, a machine learning approach that allows a model to be trained across multiple devices or servers, instead of training the model on a single centralized server, helping to maintain data privacy.
- Predictive Analytics for Market Trends: With the pre-trained Large Language Model (LLM) and the ability to combine historic company, market, and environmental data, Gen AI engines are also able to provide insights for strategic decision-making and dynamic pricing models.