A broker’s main goal is to be a trusted advisor to their customers. However, time-consuming administrative tasks can quickly divert your attention from this essential role. Here’s where digital technology equipped with AI, or artificial intelligence, can prove to be a game changer. The insurance industry has been one of many industries to dive deeper into AI usage in daily processes, from using AI for data-driven underwriting and risk assessment to streamlined claims processing, fraud detection, predictions, content creation, and more personalized customer service.

Let’s take a look at the benefits, considerations, and best practices you can implement at your insurance brokerage to make AI your co-pilot.

Benefits

With safeguards and sound processes in place, AI has the potential to lift you up as augmented intelligence – helping you know more, do more, and become more valuable to your clients. The rewards that brokers are seeing from using today’s AI tools include better customer service, greater productivity, faster marketing processes, simpler workflows, and the ability to scale your businesses to new heights and markets with easier access to data insights.

Considerations

While policymakers, tech companies, and insurance brokerages need to be aware of risks associated with AI as they implement this technology, AI presents an immense opportunity to the industry and the world when used as a collaborative partner. Without the proper precautions, AI can pose a threat through cyber scams, plagiarized data, errors, privacy leaks, fraudulent claims, or misunderstanding of algorithms. It is important to follow some best practices when adopting AI at your brokerage.

Best Practices for Adopting AI in Insurance

1. Develop a Step-by-Step Adoption Plan

   Work with your executive leadership team and key stakeholders to look at potential risks and alignment with your insurance brokerage as you develop a plan.

2. Do Your Homework

   Analyze the requirements and AI capabilities of the products you are considering implementing.

3. Build an AI-Capable Workforce

   Empower employees with the technology and training they need, along with precautions and risks.

4. Ensure Data Privacy and AI Ethics with Guidelines

   Develop guidelines that include considerations about bias, fairness, transparency and accountability to ensure that your insurance brokerage is using AI ethically.

5. Continuously Evaluate and Adjust Strategies

   Generative AI is still new, and you’re bound to learn and adjust strategies as you go. Model monitoring tools can help track the performance of the AI your insurance brokerage implements.

6. Lean Into the Support of Your Technology Partners

   Core technology providers should make it easy and accessible for you to adopt AI technology natively within your daily workflows that provide efficiencies and support your insurance brokerage’s growth objectives.

Leveraging AI as Your Co-Pilot

AI in insurance is not just a passing trend; it's a strategic co-pilot that, when leveraged wisely, can propel you to new heights of efficiency, value creation, and client satisfaction. The journey with AI at the helm is just beginning, and the possibilities are limitless. Download our free eBook for insights on how brokerages are starting to leverage AI and to see what the future of insurance can look like with AI as your co-pilot.