Report: Top AI Trends for Insurers in 2024 Include Claims, Other Insurance Processes

Insurers are prepared for artificial intelligence to move beyond task automation and machine learning to advanced uses in 2024, a new report examining the industry and how it’s using AI shows.

The report from Xceedance, a provider of operations support, technology, and data services for insurance organizations, is based on discussions with carriers and managing general agents. It identifies the challenges and opportunities for insurers of all sizes.

“There will be a significant shift in how insurers approach generative AI in 2024,” Arun Balakrishnan, CEO of Xceedance, stated. “They’ll be looking to advance the ways they apply it across claims, underwriting, and other insurance processes.

The Xceedance report focused on ways insurers can address four key AI challenges in 2024:

There must be significant focus on generative AI testing. Many insurers have been getting great results from machine learning, automating tasks in claims and underwriting. The challenge is to become comfortable with computers making choices, from level and type of coverage to claims recommendations. To achieve that level of trust, they’re going to have to try and test, again and again.

Insurance workflows must be reinvented. Underwriting questions, the set of questions insurers ask a client before providing a quote or policy, haven’t been changed significantly in decades. Successful insurers will combine technology, data, and AI and revise insurance processes from the ground up.

AI will enable insurers to embrace the power of one. Insurance models have historically considered clusters of risks in determining rates and coverage. The ability to quickly analyze large volumes of data is enabling this to change and some insurers are starting to look at risks individually, no matter how small.

Integration of information sources will drive use. There is no shortage of data sources available to insurers and more are being created every day, from telematics to geospatial data. The challenge for insurers will be integrating data sources into AI platforms so the information can be used to make decisions. It’s also important to populate the platforms employees use so it’s accessible.