The insurance industry is starting to find more and more use cases for emerging technologies, allowing InsurTech to settle into its own as targeted solutions within the value chain mature.<\/p>\n
AI, as an example, has gone from simply a discipline to being heavily integrated into many industry solutions. As AI tools gravitate to the mainstream, the industry is collectively learning how to incorporate them responsibly.<\/p>\n
A common theme in the ongoing debate about what AI models can and can\u2019t do is the degree to which it requires human participation and the role of a specialist in the process.<\/strong><\/p>\n Given this background, I took the latest AI trend, ChatGPT, and asked it for its perspective on insurance industry<\/a> technology trends. In this blog, we\u2019ll take the output and apply a human specialist\u2019s (that\u2019s me!) perspective on it.<\/p>\n First, a little context. ChatGPT is not the first model of its kind, but it is one of the first widely available AI-powered chatbots<\/a>. It is similar to what search engines did in the mid to late 90s in that it takes available technology and applies it to massive amounts of data. It requires significant infrastructure to pull this off, and the model to commercialize it fully is still in flux.<\/p>\n Combine the significant dataset with the fact AI algorithms are constantly advancing and improving, and you have a very powerful tool. Imagine a well-trained scholar having time to read everything on the internet, analyze it and formulate a thesis accordingly \u2013 basically, that\u2019s ChatGPT.<\/p>\n So, here is what ChatGPT had to say about insurance trends.<\/strong><\/p>\n So, how did it do? Not bad, but these \u201ctrends\u201d are a little lagging, which makes sense given the way ChatGPT works. Let\u2019s evaluate the results. First, let\u2019s look at what ChatGPT got right.<\/p>\n Most of the trends are on point and certainly at the forefront of the industry. I was happy to see the model understood its own value and put AI right at the top of the list, although it could be biased. Similarly, blockchain use cases, UBI and IoT are also certainly relevant. We\u2019ve seen a steady flow of industry solutions focus and thrive using all these technologies.<\/strong><\/p>\n ChatGPT also managed to hone in on a couple of areas of the value chain, such as digital claims, personalized policies and cyber.<\/p>\n The inclusion of mobile apps on the list didn\u2019t fit \u2013 it\u2019s not exactly a trend anymore. While we see new ways to leverage mobile apps to interact with consumers and agents, this is not an emerging trend. Today, employees, customers and business partners demand the ability to interact with businesses using mobile apps.<\/p>\n One insurance trend noticeably absent from the list is embedded insurance. This is probably the newest trend that would make most industry lists. Interestingly, ChatGPT identified a few specific use cases but not others. For example, it could have just as easily mentioned automated underwriting<\/a> as digital claims.<\/p>\n Embedded insurance allows insurance carriers to offer insurance tailored to customers\u2019 situations when and where they need it. As the industry progresses toward specialization, we\u2019ll continue to see trends involving sophisticated marketing and outreach.<\/strong><\/p>\n Overall, I found ChatGPT very useful for quickly getting a breakdown of some insurance trends. The tool only took a few seconds and provided a serviceable list. However, its insights were behind, and it only surfaced established, stagnated or mainstream industry trends.<\/p>\n The use case is interesting because an emerging trend is often hard to extract from massive amounts of data. In fairness, a language-based model isn\u2019t necessarily intended to perform that way.<\/p>\n This exercise shows that, like industry trends, many of the insurance applications of AI still require specialists who can leverage the convenience of an AI model but not fully rely on its conclusion.<\/p>\n\n ChatGPT\u2019s Insights About Insurance<\/h2>\n
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What ChatGPT Got Right About Insurance<\/h3>\n
What Didn\u2019t Belong<\/h3>\n
What Did ChatGPT Miss?<\/h3>\n
Conclusion<\/h2>\n