Hand holding smartphone for select insurance technology (Insurtech). Insurance concept.
The insurance industry is in the midst of a groundbreaking shift, fueled by the rise of insurtech and AI. This powerful duo is unlocking unprecedented efficiencies, reducing errors, and streamlining operations — transforming the way insurance is delivered.
But while AI is revolutionizing workflows, one thing remains certain: it can’t replace the people at the heart of the industry.
Brokers and underwriters remain indispensable, particularly in areas where judgment, empathy, and personalized service are essential. The challenge — and opportunity — lies in finding the perfect balance of leveraging AI’s power to enhance efficiency, while ensuring human expertise remains the cornerstone of client relationships and decision-making.
Common challenges in insurance
As many know, the insurance workflow can be long, complicated, and prone to human error. A single mistake in underwriting or policy submission can lead to big problems, such as delays, increased risk, and even disputes. These issues can be costly for brokers, carriers and customers.
However, insurtech solutions that leverage AI can prevent many of these problems from happening by checking policy information for mistakes, speeding up submissions and approvals and helping brokers follow strict industry compliance rules and guidelines.
When used correctly, AI makes processes smoother and seamless, freeing up brokers to focus on high-value tasks that require human judgment, such as building relationships and addressing unique client needs.
AI and humans working together,
Some people think AI will replace humans in insurance, but that’s not true. AI has its strengths, such as the ability to process information quickly and detect errors; however, it can’t match the human skills needed when interacting and empathizing with clients.
"AI can handle the volume and complexity of data, but when it comes to understanding our clients’ unique needs and providing personalized service, human expertise is essential,” said Stephen Billyard, CEO of Billyard Insurance Group (BIG).
Here’s how AI and humans can work together:
Faster underwriting. AI checks data quickly to find errors and flag problems. This reduces mistakes, speeds up approvals, and ensures policies meet all regulations. Brokers then step in to review complex cases and answer client questions.
Helping brokers do more. AI tools automate time-consuming tasks like data entry or policy checks. This gives brokers more time to focus on their clients and build relationships.
Better compliance: Insurance has strict rules that brokers must follow. AI tools can double-check policies to make sure everything adheres to these guidelines, helping brokerages build stronger market relationships and drive business growth.
Happier customers: With AI, customers can get quotes and policies faster. This creates a smoother, stress-free process and builds trust.
Human oversight: AI works best with human supervision. Brokers and underwriters can ensure AI tools are used responsibly and ethically.
Real-life impact of AI in insurance
While AI can help speed up processes, it’s still important to have brokers who can address the needs of their clients.
When insurance companies adopt this approach, they can reduce errors and omissions, improve operational efficiency and offer better customer service.
Steps to introduce AI in insurance
If your company is considering AI, start small and focus on areas where it can make a big difference.
- Start with repetitive tasks. Use AI to handle simple, repetitive work like checking data or processing applications.
- Keep humans in the loop. AI can speed up tasks, but brokers and underwriters should still handle complex decisions.
- Focus on compliance. Make sure AI tools follow all industry rules. This keeps your business and clients safe.
- Use AI to improve customer service. AI can reduce wait times, minimize errors, and improve experiences for customers.
- Set standard operating procedures for AI use. Create clear guidelines for when and how to use AI tools. Human oversight is essential, especially for sensitive tasks.
Using AI in a nutshell
In today’s fast-paced world, AI is driving meaningful change in the insurance industry, opening new possibilities for innovation and efficiency. However, people still play a pivotal role in this process as they can build relationships, offer advice, and solve problems in ways AI can’t.
The key isn’t choosing between AI and people but rather finding ways for them to complement each other. At the end of the day, those who find the right balance between AI and human expertise will gain a competitive edge and thrive in this new digital world.
Dave Brooks is the director of Marketing at Billyard Insurance Group’s (BIG) Head Office. With an MBA in marketing and a wealth of experience with major brands in telecommunications and insurance, Dave leads a dynamic team committed to advancing BIG’s vision of making insurance accessible and efficient through digital solutions, customer-focused initiatives, and a modern approach to industry challenges.
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