target audience: TECH BUYER Publication date: Feb 2024 - Document type: IDC Perspective - Doc Document number: # US51439824
Fostering a Path for an Inclusive Insurance Market With Generative AI
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Abstract
This IDC Perspective proposes a framework that provides pathways, supported by practical use cases, to help insurers understand the long-term opportunities presented by generative AI (GenAI). Adapting to the evolving risk landscape requires embracing emerging technologies, with GenAI at the forefront. Fostering an inclusive insurance market is a paramount goal, and the integration of generative AI holds the key to achieving this vision. In the ever-evolving landscape of insurance, the use of generative AI presents an opportunity to break down barriers and create a more accessible and inclusive market. Generative AI can revolutionize the insurance industry by streamlining processes, simplifying complex language, and enhancing overall customer experience. By leveraging advanced algorithms, it has the potential to bridge the information gap and make insurance more personalized (soaring the value-for-money of insurance offerings), more comprehensible (enhancing societal insurance literacy), and more accessible (through a broader collective knowledge of risk dynamics and prevention efficacy) to a diverse audience.
- The value for money of insurance offerings is enhanced through hyper-personalized, co-developed, GenAI-augmented products. GenAI enables insurers to customize products, outreach initiatives, and communication content based on individual customer profiles, enhancing overall efficiency and coverage comprehensiveness.
- GenAI fosters societal insurance literacy through empathetic digital assistants, delivering clarity and improving customer engagement. It reduces full-time equivalents (FTEs) and streamlines routine tasks, creating a more accessible insurance path-to-purchase experience.
- Risk awareness, hedging, and prevention are fostered by GenAI-driven knowledge centralization and sharing. Insurers can contribute to societal risk consciousness by providing personalized risk management strategies based on insights from diverse data sets.
"Generative AI is reshaping the insurance industry, going beyond risk coverage to drive inclusive growth. It serves as a guide for insurers navigating global systematic challenges, steering them toward a future of societal trust. By harnessing the power of generative artificial intelligence, we can pave the way for a future where insurance is more transparent and comprehensible to all as well as economically accessible and personalized to cater to the diverse needs and behavioral traits of every individual — fostering a truly inclusive and equitable insurance landscape," said Davide Palanza, research manager, IDC Financial Insights.