Generative AI in Practice is InsTech’s monthly newsletter dedicated to the use of generative AI in insurance.
The InsTech Perspective
Until very recently the phrase “a picture is worth a thousand words” was understood to imply that a picture was a very effective way of communicating information as an alternative to describing something in writing. Now with Generative AI that concept has been completely turned on its head. At our recent event in New York co-hosted with Google, Nigel Walsh showed a short video demonstrating the power of Google’s latest version of Gemini, its own Generative AI tool, supporting a concept called Project Astra.
The video shows a tour around Google’s London offices taken from a mobile phone. I found it quite extraordinary and I recommend watching it. Now we no longer need to decide whether to use words OR a picture to explain something. Indeed we no longer even need to find the words to describe what we are seeing. Gemini is capable of not only understating what it is looking at, but it has the cognitive ability to interpret and comment on what it is seeing and where it is. Whether that is sketch on a whiteboard, the view from the window, the office dog or helping you find your spectacles.
AI solutions have been available for a few years from insurers to be able to assess car damage (Tractable) room dimensions (Planr) or hurricane damage, but for only a few hundred dollars Gemini now puts an extraordinary amount of power in the hands of claims adjusters and underwriters. It was only 5 years ago that I attended a presentation in those same Google offices in London where the presenter admitted that the AI at that time was struggling to differentiate between a chihuahua and a blueberry muffin. We need to be careful not to mistake a clear view for a short distance, but it really does feel we are at the threshold of a massive step change in the use of technology across all industries now.
What the insurance industry is doing with GenAI
Ping An Insurance has enhanced its Ping An Family Doctor services, leveraging generative AI to refine proactive health management and streamline comprehensive care delivery.
Aviva says to view generative AI as a “colleague, not a replacement”, explaining that it is a tool to enhance underwriting efficiency, streamline processes and improve service without replacing human roles.
GenAI introduces new E&O risks for media and entertainment firms explains Tokio Marine HCC International, prompting insurers to adapt coverage and risk management strategies to address these emerging exposures.
Ecclesiastical’s generative AI is currently unsuitable for high-value or complex tasks says group technology director Graeme Howard, though the insurer sees potential for future applications.
AXA and Zego CEOs rule out using generative AI for insurance pricing due to compliance concerns, favoring traditional AI for underwriting and premium calculations instead.
News from the InsTech network
Last month, InsTech visited New York for our event ‘2024: An Insurance Odyssey – the voyage from evolution to revolution’. If you missed it or want to experience it again, you can visit our website to watch panels such as ‘Reinvention and Scale – The Gen AI Factor’.
Tune in to InsTech podcast episode 308 as industry leaders from Google Cloud, K2 Cyber, Cytora and Guidewire discuss the integration of generative AI in insurance, focusing on AI-assisted underwriting to digitise and streamline risk assessment processes.
And if that’s not enough, InsTech podcast episode 309 explores how Reserv integrates generative AI into its claims management platform, enhancing data flow and automating workflows to improve efficiency and accuracy in claims handling for MGAs and carriers.
Asif Mahammad Syed, VP of Data Strategy at Hartford Steam Boiler, discusses the importance of robust data management and generative AI in advancing data strategy and governance in the insurance sector on Indico Data’s Unstructured Unlocked podcast.
Instabase’s AI Hub chatbots use generative AI to streamline insurance knowledge access, enhancing underwriting and claims processes with efficient data retrieval.
Insight from EY into how CROs must leverage generative AI to update risk models and strategies, balancing the opportunities and risks in AI-driven risk management.
Solutions provider Earnix’s bionic underwriting uses generative AI and machine learning to automate and streamline underwriting, improving agility and decision-making in the re/insurance sector.
Other news and insights we’ve seen
Colorado’s new AI law requires companies to disclose when AI is used in insurance decisions, allowing individuals to correct data or file complaints to prevent bias and ensure fairness.
European banks warn of increased reliance on big US tech firms for generative AI, raising risks of vendor lock-in while leveraging AI for fraud detection and customer service improvements.
Orbital Witness partners with First Title Insurance to launch AI Reliance, an insurance-backed guarantee for generative AI outputs, covering errors in legal due diligence for property transactions.
Find out what you’ve missed…
Issue 11: The rising threat of fraud from GenAI; new solutions in health insurance; plus ChatGPT has a new largest user
Issue 10: Is GenAI a blunt instrument or a powerful multi-tool plus insights into the long-term impacts of AI
Issue 9: Insuring an AI-powered world, an AI code of conduct and using LLMs in decision-making
Generative AI in Practice is InsTech’s monthly newsletter dedicated to the use of generative AI in insurance – you can sign up for free here.
