Humans need to be in insurance’s genAI loop

Employees still need to interpret AI-generated data and make decisions to minimise risks.

Insurance companies expect to boost productivity, revenue and cost savings using generative artificial intelligence (genAI), but the real innovation is how the technology is reshaping employees’ roles, particularly underwriters and claim handlers.

Effective governance and employee engagement are crucial for insurers looking to deepen their culture of innovation using gen AI, Paul Ricard, Asia-Pacific head of insurance and asset management at Oliver Wyman Insurance, told the recent Asian Banking and Finance-Insurance Asia Summit in Singapore.

“It's extremely important to have the right governance principles in place to engage with employees the right way,” he said. A lot of these solutions are going to continue to be mostly employee-focused, he added.

Ricard said much of the potential of genAI depends on humans who could add their own expertise by interpreting and interacting with it.

GenAI’s impact is not limited to administrative functions; its true value lies in reshaping operational roles and driving revenue and profitability in unprecedented ways, he added.

Full AI integration requires a clear vision and collaboration with frontline employees, Ricard said. By engaging with underwriters, claim adjusters, and agents early in the process, companies can better manage the transition, letting them tweak and adapt AI tools that fit the business.

“The age of AI experimentation is over,” Ricard said. “Now, it's really about focusing on the business outcome and, importantly, about transforming using generative AI and automation mobility as one of the tools — a beautiful tool, a powerful tool — available.”

As companies use genAI, the governance framework, which involves human oversight, is crucial in mitigating risk, Ricard said.

In this AI-human collaboration, employee roles are not diminished but enhanced. By empowering staff to interpret AI-generated data and make informed decisions, companies can minimise risks and maximise the technology.

Successful AI adoption demands more than just technology; it needs strong leadership, clear communications, and the involvement of frontline staff, Ricard said. Companies should also embrace feedback from business customers, he added.

Involving frontline staff early enough is crucial, he said. “This can be a make-or-break [decision] for the success of these programs.”

Frontline employees need to understand how their roles will evolve. But more importantly, involving them, particularly agents and claim adjusters, allows the company to find the right genAI solutions and pivot when needed.

“Frankly, we've seen most models work, and they evolve over time as well,” Ricard said. “It's all about what works in their own implementation. And then finally, securing public sponsorship from the leaders.”

The road to genAI is about transforming the way industries engage with clients and how agents and underwriters serve their customers. “It's about changing the way claim handlers handle things.”

Involving these workers at every level creates genAI champions within the organisation and fosters a collaborative environment crucial for success, he added.