Emerging Tech Impact Radar: AI in Insurance

Advanced VAs are still three to six years away from early majority adoption in insurance. Gartner estimates that Advanced VA use lags other industries at 5% to 20% of the early majority target in insurance (see Note 1) with deployments observed in both life insurance and property and casualty insurance. However, in the last 12 months, we have seen noticeable advancements around prebuild enterprise software integration, advancing domain knowledge and enablement of multimodal functionalities. This helps to drive the expanding adoption of emerging use cases for specialized, domain-specific VxAs. VxAs possess a higher level of semantic intelligence and business process automation and higher containment rates, as well as provide proactive outreach and some end-user advisory capabilities. Specific use cases in the insurance industry include helping policyholders understand complex insurance jargon and engage with safe driving, usage-based auto insurance programs. Insurers have also used VAs to improve sales productivity and effectiveness of partner channels by increasing engagement with brokers. Virtual assistants have also been used in claims servicing to automate supply chain management, creating automated WhatsApp groups to introduce the loss adjuster and other group members to the customer.

Common challenges faced by organizations in adoption of advanced VA solutions include:

Lack of domain knowledge capabilities

Integration issues with relevant enterprise applications and data stores ■

Issues with organization’s acceptance

Insurers in particular have also suffered with overhyped/disappointing results with earlier VA pilots or proofs of concept (POCs) ■

Mass: High

Gartner, Inc. | G00786204

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This research note is restricted to the personal use of abhishek.sharma@fractal.ai.

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