Artificial intelligence has arrived in the insurance world.
The tech was actually here for years before everyday workers and the public-at-large realized its reach. But now, the maturity of large language processing software alongside growing awareness of generative AI tools have ushered in an era in which AI touches most aspects of the insurance workflow.
This theme played out in responses to the 2024 Independent Insurance Agent Survey produced by PropertyCasualty360 in partnership with the National Association of Independent Insurance Agents.
In general, respondents to the 2024 survey indicated an openness to using new technologies, and this is consistent with past survey responses. Many of this year's respondents, however, said that willingness to adopt new tools greatly depends on the exact technology in question.
How are insurance agents using AI?
Agents most often cited data management, marketing communication and the compiling of reports as functions that benefit most from AI in the agency environment, although customer service, sales and claims management also are seen as tasks that can benefit from the efficiency provided by AI tools.
Agents also were asked about potential risks from using AI, and most of them expressed concern over such pitfalls. Consider this respondent's observation:
"Use of voice AI in client-facing functions risks undermining the image of independent agencies as relationship-oriented, providing personal service."
The year's survey responses signal that contemporary insurance agents view AI as more appropriate for traditional back-office functions as opposed to client-facing tasks.
And, despite more technology tools available to them, these tools cannot necessarily help insurance agents weather today's historically hard market.
As one survey respondent shared: "The tech does not support us adequately in this current market space. Carrier struggles with staffing, their delays in response corresponds to our delays in response to client, but clients do not want to hear it. They think it is our lack of service."
Another respondent wrote:
"All the technology we have it should be easier to communicate, get answers faster, move paper faster, and underwrite more out of the box. But I have heard too often that the computer kicked [a user] out or the computer does not allow you to input" necessary information.
Other survey respondents shared:
"I love working on claims and helping people, but the technology could always be better."
"Too much reliance on technology has ruined underwriting, and I say that as a 'tech-savvy millennial.'"
"Premiums are through the roof, and getting answers from carriers is nearly impossible. All this new technology is slowing turnaround time down on every level."
More than one respondent linked the industry's current digital transformation slog with its staffing challenges:
"We have lost the people in our industry. Problems cannot be solved by technology unless there are people looking over it and accountable."
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