Why human insurance brokers are so important
cyber-
Written by Mark Sheff Jr.
Like many other industries, the insurance industry is integrating AI into the way it does business. This includes using AI to process claims, identify risks, set prices, improve operational efficiency, and more. AI is adept at processing large amounts of disparate information quickly to produce near-instantaneous results.
As an industry with mountains of data to analyze, the insurance industry is well-positioned to take advantage of AI.
“AI's greatest power is when it can automate or support time-consuming processes and speed up tasks with just vast amounts of data,” said Ketan Nayak, Senior Director of Products at Coalition Inc. (pictured above, left) says: “It makes life easier for teams, partners, customers, and brokers in the ecosystem.”
But AI won't end the professional lives of brokers and those working in the industry, Nayak said. In fact, people will be able to use the time that AI saves from more time-consuming and monotonous tasks in more meaningful ways.
“Humans can still focus on answering important questions, providing a high level of service, and spending more time on tasks that AI cannot perform, such as assisting clients with cyber incidents and more.” says Nayak.
AI empowers people
Humans will also play an important role in managing AI so that it does not cause harm. The National Association of Insurance Commissioners released a model bulletin on the use of AI by insurance companies in December. Regulators are concerned about the accuracy of the results produced by AI and whether it causes unfair discrimination.
“AI will need to be closely monitored to produce desired outcomes for the foreseeable future,” Nayak said.
That means job security for brokers.
“AI can assist brokers, but it won't actually replace them,” Nayak said. “I think that power lies in humans enhanced by AI. [AI is] We've added yet another toolkit to help you better serve your clients. ”
Brokers will continue to be “customer advocates”
A similar message that AI will enhance, rather than replace, brokers came from lawmakers at recent industry conferences.
Sen. Mike Rounds (R.S.D.) said brokers will not become obsolete even as the insurance industry increases its use of AI to help set premiums, determine coverage, and run day-to-day operations. No, the Independent Insurance Agents and Brokers of America told the Legislative Council. Conference in Washington in April.
Mr. Lowndes (pictured above, right), himself a former Big I member, told the audience of 600 brokers that they need to negotiate with underwriters, evaluate data and guard against unfair bias. .
“It's not going to replace you,” Lowndes said of AI. “You will continue to be your customer’s advocate for the long term.”
Another thing AI can't do as well as a broker is meet with long-time customers and tell them their premiums are going up because of a tough market.
“It's not fun when you go into a site to do a renovation,” Lowndes said. “You earn a commission.”
Mr. Rounds worked in the industry for nearly 30 years, operating an insurance and real estate business with offices throughout South Dakota. He is also one of a bipartisan group of four senators who are helping develop his AI bill in the Senate.
Coalition stands behind AI
AI will not only become part of the day-to-day operations of insurance businesses, it may even become insurance itself.
For example, Nayak said AI could be used to exploit vulnerabilities in security systems and conduct fund transfer fraud through deepfakes. Companies must protect themselves from that risk.
The Coalition has added authorization to its cybersecurity policy to address attacks caused by AI.
“We are expanding the definition of what we call a security failure or data breach,” Nayak said. “We are expanding the triggers. [It is an attempt to] Take proactive steps to reassure your business against these known or emerging risks. ”
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