It’s nearly impossible to go a day without hearing about the potential uses and implications of generative AI—and for good reason. Generative AI has the potential to not just repurpose or optimise existing data or processes, it can quickly generate novel and creative outputs for just about any individual or business, regardless of technical know-how. It may come as no surprise that generative AI could have significant implications for the insurance industry.
Today, many enterprise organisations are finding opportunities to use generative AI in “horizontal” use cases enabling everything from dialogue generation for virtual assistants, to automated code generation, marketing and sales content generation and much more. This convergence across industries allows organisations to leverage capabilities built by others to improve speed to market and/or become fast followers.
The insurance industry, on the other hand, presents unique sector-specific—and highly sustainable—value-creation opportunities, referred to as “vertical” use cases. These opportunities require deep domain knowledge, contextual understanding, expertise and the potential need to fine-tune existing models or invest in building special purpose models. The real game changer for the insurance industry will likely be bringing disparate generative AI use cases together to build a holistic, seamless, end-to-end solution at scale.
Insurance organisations have a remarkable opportunity to create substantial value and realise the potential of generative AI by making well-thought-out investments that focus on three key value dimensions:
Several generative AI use cases are gaining traction across insurance subsectors as insurers strive to strike the right balance between harnessing value and managing risk: