Is AI Coming for Your Job? - The Impact of AI on the Insurance Industry

Everyone, everywhere, is talking about artificial intelligence these days. With AI being the acronym on everyone's lips, "Is my job safe?" is likely the question at the back of their minds. 

Undoubtedly, AI is reshaping industries worldwide, and the insurance sector is no exception. So, is it coming for your job? 

The short answer is no. As for the long answer — well, that is what we will explore in this article.  

Out With the Old: Automating Routine Tasks 

AI is having a profound impact on automating routine tasks. According to a 2023 report from McKinsey, generative AI could automate between 60% and 70% of an employee's time spent on repetitive tasks.1 So, while AI is not going to replace you, as an insurance professional, you can expect to see a shift in your role.  Whether you work in the underwriting, claims, or actuarial space, you can look forward to spending less time on mundane tasks and focusing more on strategic and high-value activities.

Here are a few examples of how AI is already making a difference: 

• It helps insurers deal with lengthy legal documents by summarising key points and flagging issues that require attention, speeding up processes, and ensuring accuracy and efficiency. 
• It is improving customer support by enabling self-service options -  response times are reduced, and resolution can even be achieved during that first call.
• It assists underwriters and claim handlers by summarising and organising information, flagging irregularities, providing insights, streamlining processes, improving decision-making, and increasing overall efficiency.

In With the New: Embracing New Opportunities

So, with these advancements becoming more widespread, it is understandable that there is still a fear that futuristic insurance bots will replace humans. But if history is anything to go by, technology actually creates jobs. 

While some professions may be disappearing due to automation, exciting new roles are emerging, and new jobs are being created. AI is augmenting our capabilities and enabling us to do our jobs more effectively.

For the insurance industry specifically, AI is making jobs more enjoyable and rewarding. By automating mundane tasks, AI allows insurance professionals to focus on more meaningful work —  personalised customer experiences, innovative product development, and improved business operations. 

In addition, AI is making the insurance industry more intelligent, efficient, and profitable. By harnessing the power of data, AI is helping insurers better understand trends and exposures, improve risk selection and pricing, enhance claim response and management, and ultimately create better customer journeys and happier customers. And as a service industry, that is what insurance is all about at the end of the day. 

Evolving with AI: Empowering Insurance Professionals for the Future

Yes, AI is undoubtedly changing the landscape of the insurance industry, but it is not a threat to your job. Instead, it is an opportunity to embrace change, grow your skills, and leverage technology to drive innovation and growth, making your role in this very important and age-old industry more meaningful, impactful, and rewarding. 

AI is not here to replace humans; it is here to empower them.

¹ The Economic Potential of Generative AI. (2023).McKinsey. Accessed April 30, 2024.