Artificial Intelligence (AI) is transforming sectors worldwide, and the insurance industry is no exception. At Applied, we recognize the immense potential AI holds to revolutionize our workflows, enhance customer interactions, and boost overall efficiency.

AI tools are pivotal in digitizing routine administrative tasks, empowering agents to concentrate on more meaningful activities that truly enrich the customer experience, from sophisticated fraud detection to seamless claims processing and dynamic underwriting. While AI might seem like a recent phenomenon, its roots trace back more than six decades, and its evolution has been nothing short of remarkable. Today’s advancements in generative AI and transformative models, like ChatGPT, offer unprecedented opportunities to automate and innovate like never before.

What’s In It for Agencies

AI-powered tools can significantly enhance the workflows of insurance professionals by automating routine tasks, allowing them to focus on more strategic activities. For instance, enabling real-time risk assessment and personalized policy proposals that can improve customer experience. The integration of chatbots in the contact center can also streamline customer interactions, providing efficient and effective support and freeing up valuable time for agents. Insurance agencies and carriers are recognizing the transformative potential of AI technology. Given that we are still very early in the days of AI in insurance, the industry is quickly opening up to its possibilities.

Real-World Applications of AI in Insurance

With AI as the co-pilot, the industry can reimagine workflows and refocus efforts on value-added tasks for their customers. AI solutions can be implemented to enhance various processes, including:

Marketing Content Generation: Leveraging generative AI capabilities, agencies can draft powerful marketing content and emails with impressive speed and precision. This technology assists in crafting clear, engaging messages that capture attention and build stronger customer relationships.

Fraud Detection: AI algorithms analyze vast datasets to identify unusual patterns in insurance claims, which can help mitigate fraudulent activities and ensure accurate pricing for policyholders.

Claims Processing: AI-powered systems streamline the claims processing workflow, speeding up the resolution time and improving the overall customer experience.

Underwriting: Automated underwriting tools leverage machine learning and other AI technologies to assess risk more accurately and efficiently.

Customer Service: AI chatbots can handle basic inquiries and free up independent agents to manage more complex issues, thus enhancing the customer experience.

Applied and AI-Powered Solutions

While we are in the early phases of adding AI-powered solutions, we have been working with our expert colleagues at Planck and with customers through the Applied AI Lab to develop capabilities across our product suite. Check out this recent article by Leandro Dallemule, our Chief AI Officer and Planck GM for more examples of how AI is creating value in insurance.

Coming Soon: AI-Powered Account Rounding

One opportunity we see in 2025 is AI-powered upsell and cross-sell capabilities. Renewals are a great milestone for evaluating a customer’s risks and ensuring they have the right coverages and policies in place. Knowing the right opportunities based on customer needs isn’t easy and requires lots of research – visiting third-party resources or bookmarked databases and asking insureds for information to try and get the best view of a customer’s risks. When we asked agencies to rank top sources for growth over the next five years in our 2024 Voice of the Customer survey, account rounding was number one. There's massive value within existing books that we want to help you go after more effectively.

Applied Book Builder, a new product in Applied Epic® we are bringing to market this year, will harness the transformative power of AI to help agencies identify high-probability cross-sell and upsell opportunities within their existing books. By tapping into thousands of publicly available sources, Applied Book Builder enriches commercial risk profiles and identifies coverage gaps within existing policies, saving countless hours of manual research and data entry, and enabling you to focus on higher-value tasks like maximizing the value of every account and growing the business.

Sign up to be one of the first to hear when Applied Book Builder is available later this year.

Embrace AI As Your Co-Pilot

To unlock the full potential of AI, insurance agents must stay informed and be proactive in exploring various use cases. This will involve continuous learning and adaptation as the technology evolves. The future is promising, and by leveraging AI, we can drive profitability, growth, and overall advancements in the sector. The key to success lies in not just adopting new technology, but also in understanding how to integrate it effectively into existing workflows to create real value for both the agency and its clients. Check out our eBook to learn more about AI in insurance.