Motivated about the benefits it can provide to insurance companies, ChatGPT’s “knowledge” (based on 175 billion data parameters) and communication skills can help customers with their insurance questions and help insurers to stay ahead of emerging trends and customer needs.
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The AI language processing tool has sparked intense debate about its implications for the digital world, even as it has become popular in industries as diverse as healthcare and education.
But leaders of insurtech companies, many of which use AI to transform claims, underwriting, distribution, fraud detection and more, are optimistic about the doors that generative AI can open.
The combination of AI and a conversational interface could have transformative power for insurance, according to a CEO.
“If you can ask a computer, in natural language, to solve a problem for you, and it can do what you ask with high probability, that’s a game changer,” said Amrit Santhirasenan, co-founder and CEO of hyperexponential .
“Furthermore, if you have AI models that are sophisticated and free-form capable of intelligent interpretation, that will also have a big impact. We’re going to see practitioners using these technologies really take off.”
What are the pros and cons of ChatGPT for insurance?
It is unlikely, at its current stage, for generative AI to be complete replace underwriters, claims handlers, or customer service representatives, say the experts.
ChatGPT itself has a long list of pitfalls: it cannot understand context or nuance in human communication, such as sarcasm; it is limited in its ability to handle multiple tasks; and it does not have sufficient expertise to draft complex or technical documents, such as policy wording.
It can also have biases or biases, based on the data it’s trained on, which opens a Pandora’s box of ethical issues for insurance companies.
The value in generative AI lies in its potential to automate non-core but important tasks.
“If someone can write the right prompts to an AI, instead of manually formatting a spreadsheet, they can work in the 100th or even a millionth of the time,” Santhirasenan said.
According to Roi Amir, CEO of Sprout.ai, insurance companies can use the underlying technology to start their own innovations.
Sprout.ai trained its own AI to handle insurance claims data, boasting its claims automation platform can process most claims in minutes. Amir said other companies are looking to use general AI for similar specific applications.
“If you look at many [AI] models today, you know, they’re built to be very specific to a problem,” he told Insurance Business. “ChatGPT is a great general model. What I think we’ll see is more companies using this as their baseline model and adding layers of intelligence and specificity for their individual domains.
“It will start a lot of things because it allows you to start from a better level of abstraction. Smart companies will use that to solve very, very specific problems.”
Santhirasenan agreed: “If we take these sophisticated AI models and specialize them, we can create ‘supercharged’ versions of AI applications in different sectors. [of insurance].”
It may take time, however, for some specialty and commercial lines to find value from AI models due to a lack of data, the CEO acknowledged. But personal lines like home and auto insurance, where there are hundreds of millions of data points already available for AI to use, could see amazing results.
“We’re just at the beginning of this, but we can see some incredible things from personal lines of the spectrum [of business] very fast,” Santhirasenan added.
Lawrence Buckler, VP of sales at Sprout.ai, pointed out that AI existed as an invisible lever in insurance for years, before ChatGPT came into mainstream consciousness.
“ChatGPT has done something that many people have never seen before. At Sprout, we’ve been using AI for years to solve problems that most people don’t see,” he said.
“Today, we have customers using AI to completely solve complex data problems very quickly, effectively, and consistently.”
While the evolution of the technology is still unclear, the overnight sensation around generative AI is a boon for insurance companies, said Bill Brower, VP of industry relations and claims solutions at Solera.
“The biggest thing [ChatGPT] What this does for the insurance industry is that people are becoming more comfortable with the capabilities of AI,” said Brower.
“The more we see consumers using AI in other areas of life, the more it will help insurers [using AI] in their applications.”
What are your thoughts on ChatGPT and its potential impact on insurance? Share them in the comments below.
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