Use cases From underwriting and claims management to customer service and risk assessment, GenAI has the potential to transform a wide selection of facets within the insurance industry. In Fig. 4, we have mapped multiple use cases of GenAI. Its potential impact on the insurance value chain is far-reaching, enabling insurers to streamline operations, mitigate risks, optimize pricing, and deliver superior value to policyholders and enterprises.
Functions
Sales & Distribution
Risk Management • Identifying at risk customers for proactive outreach and support.
Asset Management
Marketing
UW & Pricing
Claims
Draft policy documents. Synthetic data for better risk assessment. KYC & data validation using public, 3PD & policy data. Digitized policy buying experience. 24x7 knowledge assistant for UWs (Regulator changes, public info on customers, initial risk assessment, etc)
Personlized targeting & campaign content generation. Educating & creating.
Interactions & guidance chatbot for agents. Cross-sell and Upsell insurance policies with GenAI-assisted agents. Empathetic AI-powered chatbots to improve customer experience. • Reduce digital friction by customer sentiment analysis on social media.
• 24x7 knowledge assistant to adjustors-doc summarization, letter of intent generation, etc
• Optimizing investment portfolios by analyzing different combinations of assets and identifying the most efficient portfolio structure. • Forecast market trends, identify investment opportunities. • Real-time monitoring of investment portfolios.
• Detecting & addressing bias in
• Detect fraud
using synthetic data.
insurance practices to ensure equitable emotional treatment of all customers.
Improved customer
Improved efficiency Reduced
• Increased customer retention • Reduced claim cost
Accurate severity estimation & reserving Faster claims processing Lower claims severity Reduced LAE
Higher response rate Higher customer engagement
Higher return on investments
experience
More
expense cost Increased risk assessment accuracy
productive & effective agents
Fig 4: Use cases
Example: GenAI in an underwriter’s journey The integration of GenAI into the underwriting process delivers automation, efficiency, accuracy, and improved decision-making, transforming the traditional journey of underwriters by allowing them to concentrate on intricate cases, consistently follow guidelines, optimize operations, manage risks, and enhance customer experience, all while delivering superior underwriting services. Figures 5 and 6 provide a comparative analysis of an underwriter's journey within a specific line of business, in this instance, the small commercial property sector, using the example of a city-based café chain's insurance application.
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