Generative artificial intelligence (GenAI) in insurance industry
In the last few years, with the development of GenAI technology, the life and health insurance industry has automated the risk underwriting process, enabling insurers and reinsurers to access documentation and data faster, identify and detect potential fraudulent activities, file and settle claims, which will lead to better risk assessment and the overall process of creating insurance offers.
Generative AI (GenAI) is a type of artificial intelligence capable of generating new content–text, images, and videos, interpreting unstructured documents, which could bring numerous opportunities to the insurance industry. One of these opportunities is a more efficient risk underwriting process, resulting in operational savings without negatively impacting risk assessment.
However, when it comes to health insurance, there are still some policyholders who require additional data to make appropriate underwriting decisions, such as complex medical conditions or higher insured amounts. The data needed here often requires manual review by the insurer.
The underwriting process itself involves the policyholder filling out an application form, answering questions about their medical history, lifestyle, and other relevant risk factors. If higher coverage amounts or additional health conditions are involved, further risk assessment is directed to the insurer. The insurer then makes a decision based on the information in the application form or requests additional information, which may include visiting a doctor or contacting the applicant’s physician for medical documentation.
GenAI has huge potential for the insurance industry, but the human factor will always be crucial in areas such as damage and risk assessment. This way of operating enables insurance companies to work more efficiently and provide better protection for their clients. In the future, we can expect even more innovations that will make insurance easier and more efficient for both policyholders and reinsurers.
