The role of AI-driven customer service is continuing to evolve, with use cases within the insurance industry going beyond just chatbots. Data from WorldMetrics found that, in 2024, AI is forecast to save the insurance industry $1.2 trillion in cumulative cost savings - and by 2025, AI is expected to handle 90% of routine insurance inquiries.
And, according to Yiana Stavrakis (pictured), president of Monarch E&S Insurance Services, claim payments will be the next thing to be transformed by generative AI.
“Claim payments, AI generative sales funnels, back-office support—all of these are areas where AI insurance-related use cases are taking place,” Stavrakis told IB. “The next hot thing will be claim payments, in which a loss occurs, it is reported, read by AI, compared to the policy by AI, sent out for a drone appraisal, and then the payment is issued immediately by wire.”
Advanced AI algorithms can improve claims accuracy by up to 90%, with analytics reducing claim errors by up to 25%. However, the excitement around automation is tempered by the recognition that complete automation might not always be the best approach.
“There isn’t a one-size-fits-all customer service model,” Stavrakis added. “For complex claims or when a client just wants to talk to someone live, there needs to be a human element. I don’t believe, in years to come, customer service will be completely automated. We will continue to need some form of human interaction for complex claims, or simply just as an option.”
Stavrakis will be shedding light on this topic and more at the Women in Insurance LA Summit on October 29. Alongside two other panelists, she will participate in a fireside chat titled ‘Insurance’s digital revolution: Navigating the disruptive technology of tomorrow.’
One of the panel’s key topics will focus on how to balance the integration of AI while keeping services personalized, which requires a nuanced approach.
“Currently, there are two options,” said Stavrakis. “The AI bot is often the first line of defense, but if someone wants to speak with an individual, or if the chatbot can’t handle a complex question, the client is referred to a specialist.”
This goes hand in hand with the need to ensure data security, particularly in the context of protecting sensitive customer data, which is another area where Monarch E&S is placing significant emphasis.
“We deploy multifactor authentication, which is essential in ensuring the actual user is entering your systems,” Stavrakis said. “We also have robust data security protection policies, with continuous audits to ensure there are no gaps. We also limit access to sensitive information to only the roles that require it, which requires prior approval.”
Stavrakis recommended that industry leaders employ these practices as well as ensuring that everyone has an insurance policy to protect them for cyber – adding that she hopes other leaders will walk away from her session “less fearful of AI, less fearful of digital transformation, with some key best practices they can deploy at their own business.”
“This is not going away. The more we work together, share best practices, and remove ambiguity from AI, the better for all of our futures,” she said.
