The acceleration of artificial intelligence (AI) technology is being viewed as key to driving efficiency and operational improvements within the insurance sector. However, the industry is only just beginning to witness the full impact that AI and automation could bring.
According to RDT’s recent Tech Poll, which surveyed technology professionals from insurers and managing general agents (MGAs), there is cautious optimism regarding the adoption of AI. Respondents pointed to the potential for AI to enhance insurance processes and platforms, benefiting both customers and brokers.
The survey revealed that 61% of firms are currently utilising generative AI, while 52% of insurance tech professionals expressed confidence that the sector is implementing AI in ways that will provide tangible benefits to customers and brokers.
AI is already influencing customer service through the use of virtual assistants and chatbots, which can address routine queries and provide quicker responses. These tools enable instant interactions, allowing firms to focus on resolving more complex customer issues that require greater attention.
Insurers also identified several key areas where AI could improve operations in the future. Personalised services (81%), fraud detection (66%), and underwriting support (53%) were among the most important ways AI is expected to benefit firms.
AI is also gaining traction in the claims process, with the technology seen as a means of reducing processing costs, enhancing the customer experience, and shortening the time it takes to settle claims, potentially from days or weeks to mere minutes.
Despite these advancements, human input remains crucial. Complex claims decisions will continue to require claims handlers, and many customers still prefer human interaction, particularly when dealing with sensitive issues. As a result, careful integration of AI into customer service frameworks is seen as essential.
The majority of tech professionals (88%) advocated for a balanced approach, emphasising the importance of human expertise. They suggested AI should be used to support, rather than replace, human decision-making.
Joe O’Connor (pictured above), deputy CEO of RDT, commented on the findings, noting that while AI adoption in the insurance sector is progressing, it is critical to maintain a balance between technology and human skills.
“AI can significantly enhance efficiency and customer service, yet the human touch remains irreplaceable for complex decision-making and empathetic customer interactions. Our industry must continue to innovate while keeping the customer at the heart of all advancements,” O’Connor said.
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