Will artificial intelligence revolutionize insurance?

By on 20 September 2018

Two summer schools on artificial intelligence were held in early July, in Grenoble (France) and Saclay (France). AI and its impacts on citizens, companies and organizations will have greatly contributed to the debates in the public and economic spheres in the first half of 2018. As France seeks to position itself as a leader in AI, I am particularly concerned about the upheavals in our business sector: insurance.

As with any new technology, AI is a source of concern and controversy about the threats it may pose to the privacy of our fellow citizens or consumers. In any case, it is certain that the increasing use of technologies integrating AI is likely to gradually change uses, and therefore consumer expectations. Facial recognition, conversation robotization, voice recognition, emotional analysis… so many uses that could transform our profession in the future.  It is up to us, insurance professionals, to find answers to new expectations while keeping in mind the need to simplify operations and avoid “gadgeting”, both in the commercial relationship and in the management of operations.

Being able to solve an iPhone case in a few clicks is one thing. But being confronted with a chat-bot in a people’s accident is another! As with everything else, we must remain focused on the customer and his expectations at a specific time. That’s why tests and POCs are necessary before any generalization.

As such, we must consider the customer experience far beyond technical issues. Insurance is a business that manages people and emotion. And the future of our business also lies in our ability to adapt the customer experience to the moment of life, to the segment. This must be applied in the underwriting process and in the way we manage claims – more or less quickly, more or less “technologically”.

The important thing is also to choose your technological partners to experiment. We are interested in start-ups that work on different types of AIs, allowing for example a better detection of fraud, automation of claims settlement, customization of insurance covers….. These new 100% digital partners force us to ask ourselves questions about future models, from distribution to the regulatory framework.

To sum up, the use of artificial intelligence in insurance will be a question of dosage and proper use; so that the client does not feel that he has chosen his health contract or has been accompanied in the declaration of a serious pathology solely by a robot. It is another great challenge for the future of insurance: renewing experiences, simplifying consumers’ lives while keeping the humanity that is at the heart of our business.

 

Emmanuel Morandini