Credit: Alexander Limbach/Adobe Stock
Consumers are spending less, and life and annuity issuers are feeling pressure to cut costs to maintain profitability.
One way the issuers can respond without hurting the quality of their service is to ramp up use of new types of artificial intelligence systems and other advanced systems.
Generative AI is already becoming deeply integrated into core insurance processes.
The next step forward is insurer adoption of autonomous, agentic AI systems.
Users can activate agentic AI systems with simple commands. The systems can make decisions, perform complex tasks and streamline workflows with limited human oversight.
New research suggests that adoption of the new AI systems in life and annuity underwriting operations will jump to 71.5% in the next three years, from 14.6% today.
What does this mean for advisors like you and your clients?
1. Risk assessment will improve.
Underwriters at many life insurers already use machine learning and AI in underwriting.
Now, they are moving from the use of simple automation and rules engines to the use of advanced tools like predictive analytics.
By adding Gen AI and agentic AI, they can take in and process more types of data and come up with more sophisticated insights more quickly.
2. Communications will improve.
With more customers expecting digital experiences, insurers are now looking to introduce digital platforms that provide real-time feedback and educational information.
Gen AI is already improving customer experience, and the rise of Gen AI-powered virtual assistants will continue this trend. These assistants will simplify interactions for the clients and ultimately boost client loyalty.
Gen AI will also improve communication between back-office underwriters and financial professionals like you.
3. The AIs will need new forms of management.
Vendors are offering a growing number of AI systems and data streams.
As the number of vendors grows, the insurers you work with will need help with new types of tasks, including reducing AI bias and integrating AI systems into their workflow.
How well the issuers add AI tech to their operations may determine how well they compete for your attention and your clients' business.
Shay Alon is managing director – global lead at Accenture Life & Annuity Products and Platforms.
Credit: Alexander Limbach/Adobe Stock
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