The role of AI in insurance requires investment in the human touch

The emergence of artificial intelligence (AI) has transformed the workplace, essentially serving as a digital executive assistant and giving workers the gift of time. In fact, employees across all sectors that use generative AI already save an average of 1.75 hours a day.

The role of AI in insurance is similar. AI enables automatic policy renewals and customer forms, extraction of data from documents and maintenance of detailed records – all of which serve to minimize wait times and get customers the coverage they need more quickly. For more straightforward transactions, AI also offers customer support in an effective way that mimics an agent.

On top of that, AI’s access to advanced data, such as satellite images, remote sensors and telematics enables real-time risk assessments, allowing insurers to better assess the likelihood of a car accident or damage to a home. In turn, customers are provided with more personalized coverage and better pricing.

The role of AI in insurance hinges on how we use this newfound time.

As technology frees up time, insurers should invest in their agents who can make the customer experience more delightful by improving customer service and allowing for more time spent on education and advice. The key is to follow a few guidelines:

Don’t over rely on AI

While traditional risk assessments carry the potential of human bias, an over-reliance on AI can also lead to automation bias, in which a system’s information is blindly accepted, even if incorrect. Too much of a dependency on automated alerts may cause a failure to recognize when one doesn’t work the way it should, leading to issues with customer policies, such as a calculated risk error resulting in insufficient coverage.

Implement the human touch

While AI can analyze customer needs and recommend suitable coverage, only a seasoned insurance agent can convey the assurance clients often need when making these transactions. Further, almost half of customers still prefer to interact with a human even after a policy is in place. Discussing coverage needs for life’s uncertainties can be a delicate topic. Engaging with clients about their families, hobbies and overall lifestyle forms a bond that can be critical for giving them the confidence to make important insurance decisions.

Improvements to AI are happening rapidly. Some customers, especially those from younger generations, are inclined to embrace AI. Others may be more reluctant so it’s critical that the customer experience continues to be customized to the customer and their needs. A recent study by McKinsey found that more than 30% of customers are not satisfied with digital offerings and only 20% prefer digital channels as their top choice for communicating with their insurer.

Presently, customers desire the convenience of an online purchase without losing the opportunity to consult with live agents. Combining the empathy and reassurance of a live agent with the ease of secure digital tools, through an omnichannel platform like VIU by HUB, opens the door to a broader audience of customers while meeting everyone’s individual preferences. With access to a full advisory team, VIU by HUB customers can shop on their own or lean on professionals if needed. Those agents can also help advise customers as their life evolves, ensuring they always have the coverage they need – something that AI alone couldn’t adequately do.

Insurers and brokerages that embrace the role of AI in insurance will be in the best position to serve their customers now and in the future.