{"id":14698,"date":"2024-04-15T13:31:42","date_gmt":"2024-04-15T08:31:42","guid":{"rendered":"https:\/\/www.insurance-advocate.com\/?p=14698"},"modified":"2024-05-28T23:00:32","modified_gmt":"2024-05-28T18:00:32","slug":"50-billion-opportunity-emerges-for-insurers-worldwide-from-generative-ais-potential-to-boost-revenues-and-take-out-costs","status":"publish","type":"post","link":"https:\/\/www.insurance-advocate.com\/2024\/04\/15\/50-billion-opportunity-emerges-for-insurers-worldwide-from-generative-ais-potential-to-boost-revenues-and-take-out-costs\/","title":{"rendered":"$50 billion opportunity emerges for insurers worldwide from generative AI\u2019s potential to boost revenues and take out costs"},"content":{"rendered":"<p class=\"p1\"><strong>AI technology offers insurance businesses large-scale financial potential from productivity gains, optimizing sales channels and digital advice, and delivering enhanced, personalized customer experience<\/strong><\/p>\n<p class=\"p1\"><span class=\"s1\">\u03c5<\/span>Insurance businesses worldwide have a\u00a0$50 billion dollar\u00a0financial opportunity from generative AI to harness the technology in ways that could boost their revenues by as much as 20% and cut their costs by up to 15%, research from\u00a0Bain &amp; Company\u00a0finds.<\/p>\n<p class=\"p1\">Bain\u2019s report,\u00a0It\u2019s for Real: Generative AI Takes Hold in Insurance Distribution,\u00a0(excerpted below)\u00a0\u00a0concludes that leveraging generative AI in insurance distribution has the potential to yield more than\u00a0$50 billion\u00a0in annual economic benefits for companies in the sector.<\/p>\n<p class=\"p1\">\u201cFor insurers, benefits due to generative AI will come through three routes,\u201d said\u00a0Bhavi Mehta, global lead of AI in Financial Services at Bain. \u201cThis includes raising productivity, lifting sales through more effective agents and digital advice, and better risk identification and targeting that will help both customers, agents and the enterprise. At Bain, we remain committed to helping our clients not only within insurance \u2013 but across industries\u2013 identify and realize AI\u2019s full business potential.\u201d<\/p>\n<p class=\"p1\">Generative AI will transform insurance distribution in four ways<\/p>\n<p class=\"p1\">Early use of generative AI within insurance suggests the technology will transform distribution in four ways, including:<\/p>\n<p class=\"p1\">\u2022 Agent productivity:\u00a0The technology will help agents to navigate and produce content faster. It will reduce low-value interactions and provide coaching for more effective interactions with customers.<\/p>\n<p class=\"p1\">\u2022<span class=\"Apple-converted-space\">\u00a0 <\/span>Customer self-service and sales support: An always-on virtual assistant will extend the availability of agents and help customers with product comparisons and digital purchases.<\/p>\n<p class=\"p1\">\u2022 Hyper-personalization at scale:\u00a0Tailored conversations, content, and offers will more readily respond to individual customer needs.<\/p>\n<p class=\"p1\">\u2022 Business insights and decisions:\u00a0Combining signals from unstructured data with structured data will yield new insights and aid in risk identification.<\/p>\n<p class=\"p3\">Managing the risks<\/p>\n<p class=\"p1\">Bain\u2019s analysis also pinpoints key risk areas emerging from insurers\u2019 developing use of generative AI including hallucination, data provenance, misinformation, toxicity, and intellectual property ownership.<\/p>\n<p class=\"p1\">\u201cAs with any nascent technology, there will be risks,\u201d said\u00a0Sean O\u2019Neill, leader of Bain\u2019s global Insurance practice. \u201cTo manage risks, insurers should adopt a responsible AI strategy that includes short-term priorities, as well as a long-term vision enabling companies to build valuable AI capabilities to redefine their business operations.\u201d<\/p>\n<p class=\"p1\">Critical steps for insurance business leaders<\/p>\n<p class=\"p1\">As generative AI continues to evolve, Bain urges insurance companies to take several critical steps to adapt to the fast-developing technology. These include aligning across business units on how AI can support business strategy, determining what to build internally and what to buy from vendors, ensuring that delivery teams are cross-functional, and designing an operating model that is adaptable. <span class=\"s2\">[<\/span><span class=\"s3\"><b>I<\/b><\/span><span class=\"s4\"><b>A<\/b><\/span><span class=\"s2\">]<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI technology offers insurance businesses large-scale financial potential from productivity gains, optimizing sales channels and digital advice, and delivering enhanced, personalized customer experience \u03c5Insurance businesses worldwide have a\u00a0$50 billion dollar\u00a0financial opportunity from generative AI to harness the technology in ways that could boost their revenues by as much as 20% and cut their costs by [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[479,485],"tags":[420],"class_list":["post-14698","post","type-post","status-publish","format-standard","hentry","category-479","category-april-2024","tag-artificial-intelligence","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/14698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/comments?post=14698"}],"version-history":[{"count":1,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/14698\/revisions"}],"predecessor-version":[{"id":14699,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/posts\/14698\/revisions\/14699"}],"wp:attachment":[{"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/media?parent=14698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/categories?post=14698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insurance-advocate.com\/wp-json\/wp\/v2\/tags?post=14698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}