How GenAI Can Transform the Insurance Sector

As an individual, I firmly believe in the power of tech to improve the present and transform the future. A few years ago, I took a leap of faith and invested my money via suggestions from a friend’s AI-driven investment program. It was an early affirmation of my belief in the transformative power of AI. Three years later, rapid advancements in AI have led us to the Generative AI revolution. As the Chief Technology and Data Officer of IndiaFirst Life , I find myself even more excited about the immense potential of GenAI today.

As a #CustomerFirst organisation, tech is a key lever for us. I’m already witnessing how AI/ML applications are transforming our operations. From underwriting to claims processing, machine learning algorithms are helping us make more informed decisions and improve efficiencies. For instance, through our instant policy issuance process, certain groups of customers now receive a policy copy in their inbox within minutes of submitting their details.

I’m personally of the view that GenAI’s potential (and this just tip of the iceberg) for reimagining the customer experience is even more transformative as it represents a different breed of intelligence that can simulate human thinking and decision-making.

Here’s a possible use case (and I welcome more perspectives from my peers). As the family’s breadwinner, a customer wants to ensure that his family lives respectably during and after his life. Currently, he manages all the family’s expenses such as school fees, shopping and also savings. It’s like he has filled a wallet with money and then allocates it for various spends as per the season. Now, what if a GenAI application could possibly take this over this role and automatically allocate funds? It could analyse the rhythm of the family’s outflows and tweak allocations accordingly – say, INR 30,000 for January to May, INR 70,000 in June, down to Rs 45,000 for July to October and so on. It could even manage investments and keep the corpus growing to meet the family’s needs for a longer term. The potential for such personalisation is huge!

As exciting as the prospects are, I will strike a cautionary note. Insurance is a fiduciary responsibility, and we owe this to our customers. The potential for GenAI comes pre-loaded with questions about safety and privacy. If theres some hesitancy in the nbsp;industry about it, this is the right way to go – cautious steps, with a lot of testing to understand the space thoroughly so that our customers’ funds stay protected even as we deliver maximum value.

All I will say for now is that at IndiaFirst Life, we are ready to take on the challenges of GenAI and eager to explore the transformative changes it can bring to the insurance sector and beyond.

Do share your views on the potential uses of GenAI.

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