According to a new study – “Expressed (Re) Generation: the potential of Generative AI and charge management, between benefits and risks“- made by EY in collaboration with Italian Insurtech Associationwhich examines the benefits and risks associated with the use of Generative AI in the insurance sector, for 96% of the intervieweesGenerative AI will change the control of the insurance.
The report focuses primarily on the claims management process to analyze how players are applying this technology to enhance the user experience and increase operational efficiency in claims management. The scholarship is based on the gift of around 25 sports insurance including companies (with market share coverage of total revenue exceeding 40%), Insurtech and retailers pre-eminent in the Italian market.
Because 88% of those interviewed benefit from an increase in productivity and operational efficiency, for 63% there is a reduction in costs, for 50% support for risk management and prevention of insurance and another 50% , the update. of customer relations.
Currently, the majority of insurers are implementing or planning to pilot (67%) Generative AI. 42% of them also indicate that they have an AI Strategy to define how AI will be used, controlled and implemented, while 33% are in the data collection and analysis process.
Charge management
The most important case of Generative AI in claims management comes from a better ability to detect fraudulent claims, considered “important” or “very important” by 72% of survey participants. This is followed by the adoption of a ChatBot or Virtual Assistant in the complaint reporting process (68%), and for 55% the use of a personal assistant to support the organization and automatic analysis of damage and repair plans .
Problems that may arise with the use of AI Gen
It’s not just profit. From the analysis carried out, a series of concerns also emerges that are closely related to the great potential associated with the application itself. For 71% of those interviewed, the risks, of an operational nature, include the possibility of getting the wrong output due to errors, misconceptions and indifference that occur during the training process; because 63% of the risks are associated with legal and compliance issues and for 54% they are ethical. It was also found that for 17% of those interviewed, cyber risks are dangerous, including malicious attacks aimed at exploiting the weaknesses of the model to destroy and evade the results presented.
However, as the survey shows, insurance companies believe that The benefits associated with Generative AI far outweigh the risksassigning a sign of 3.5 and a scale from 0 to 5, where 0 represents “only risk” and 5 “only benefit”.