The insurance industry is on the brink of a major change thanks to advancements in artificial intelligence (AI). Industry experts believe that AI will not only reshape how insurance companies operate but also how they manage risks and handle claims. This shift is expected to significantly alter the skills required in the workforce.
Troy Dehmann, the chief operating officer of Beazley, shared insights during a recent Financial Times webinar. He emphasized that the biggest change will focus on the skills needed in the industry. Dehmann noted that every role in insurance will feel the impact of AI, and there will be a strong push for upskilling and new training methods.
Michael Föhner, who leads data and AI governance at Swiss Re, expressed concern about the urgency of this transformation. He highlighted the need for insurance companies to ensure that humans remain involved in the decision-making process, especially as AI becomes more integrated into their operations. Föhner likened the rapid evolution of AI to driving a fast car, stressing that workers must be trained to handle such powerful tools effectively.
Mohammad Khan from PwC UK added that the industry is shifting from a reactive approach to one focused on continuous risk and claims management. He believes that AI will help insurers predict future risks more accurately, leading to better decision-making.
In practical terms, companies like Swiss Re are already utilizing AI to handle large amounts of unstructured data. Föhner explained that GenAI, a type of AI that deals with this data, allows for quicker underwriting and claims processing. Instead of taking hours, some tasks can now be completed in seconds.
Föhner also mentioned an AI-powered underwriting assistant called Life Guide Scout, which helps underwriters by answering questions in natural language. This tool doesn’t make decisions but serves as a powerful assistant, allowing underwriters to focus on more complex tasks.
Dehmann echoed this sentiment, stating that AI is being used for various tasks, including reading and summarizing data for underwriting and claims. He stressed the importance of governance in this relationship, ensuring that AI does not operate independently but rather as a supportive tool for human workers.
The conversation also touched on the distinction between Generative AI, which creates new content, and Agentic AI, which can act independently and make decisions. Khan noted that while the insurance industry is starting to embrace Agentic AI, it is still in the early stages of this transition.
As the insurance sector adapts to these technological changes, the focus on education and training will be crucial. The goal is to prepare the workforce for a future where AI plays a central role in shaping the industry.