Industry experts predict that artificial intelligence (AI) will completely transform the operational model of the insurance industry, drive a shift in skill requirements, and enhance risk management and claim processing efficiency. At a recent Financial Times online seminar, Beazley’s Chief Operating Officer Troy Dehmann pointed out that the most significant change brought by AI is not merely automation, but a comprehensive upgrade of industry skills. He believes that in the next five years, all insurance positions will be affected by AI, and the education and training system needs to be adjusted accordingly.
Michael Fohner, the Global Head of Data and AI Governance at Swiss Re, emphasized that the speed of skill improvement is crucial. He likened using AI to driving a high-speed racing car, where practitioners need to quickly adapt to operate the technology. Additionally, the decisions made by AI still require human verification, and the academic community and the insurance industry need to collaborate to address this challenge. Mohammad Khan, a partner at PwC UK, added that AI will drive the insurance culture to shift from “passive handling” to “continuous risk management”, and help design more customized customer products.
Currently, AI has been initially applied in the insurance industry. Swiss Re uses generative AI (GenAI) to process 80% of unstructured data, such as quickly answering risk questions through the underwriting assistant Life Guide Scout. Beazley applies it to scenarios like data extraction and claim summaries, but emphasizes that AI is only an auxiliary tool and decision-making power still lies with humans.
Khan further distinguished between GenAI and Agentic AI: the former generates new content, while the latter can make autonomous decisions and pursue goals. He believes that although Agentic AI is still in its early stages, it will play a greater role in the insurance industry, such as actively optimizing risk assessment.
With the in-depth application of AI technology, the insurance industry will embrace a more efficient and personalized service model. However, it also faces challenges in terms of skill transformation and governance. This transformation may redefine the future landscape of the industry.
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