ChatGPT in Insurance

ChatGPT in Insurance
Mar 17

I am a scientist by education and have always been fascinated by the steadfast developments which are happening in the field of science and technology. This is even more relevant in terms of technologies that affect every sphere of society.

It started with the amazing invention of mobile phones. It was fascinating to know that such a tiny device had more processing power than the computer that landed the first man on the moon. Seen it evolve over time and become a very powerful and life-altering technology, making lives simpler. You will be amazed to know that these days, our mobile devices have more computing power than all the greatest supercomputers through the turn of the 21st century. Many such technologies have evolved, and either fallen by the wayside or made to the mainstream.

The pace and development of AI and ML is particularly fascinating too. These technologies can add a lot of value to businesses and help catapult them to the next level. The current buzzword and emerging, groundbreaking tech is ChatGPT. The artificial intelligence (AI) language model ChatGPT has captured the world's attention in recent months. This trained computer chatbot can generate text, answer questions, provide translations, and learn based on the user's feedback. Since its launch, this conversational AI has passed all sorts of tests and has dominated business discussions across industries. Business leaders across the globe are reflecting on its possible uses and how it can add value to their business and the industry at large. Currently, ChatGPT has trained four models with different levels of capabilities, which are apt for different use cases. These models can understand, process, and generate natural language. Let’s see what impact it can have closer to home, on the insurance sector.

Customized solutions: ChatGPT promises many valuable and practical applications for the insurance industry; let us look at different use cases for the sector. It can empower insurers to provide a personalized experience to the customer by analyzing customer data and offering tailored recommendations. Based on the customer’s conversation with ChatGPT, structured insurance solutions can be provided as per their specific requirements. As AI gets better at understanding customer preferences and choices, it will evolve to offer unique products and services. In the age of ‘Use and File,’ and in the era where insurance has gone beyond just offering products to designing ecosystems, tools like ChatGPT will go a long way in helping customers tailor their own insurance products. It could be the era of modular covers, which will be custom built into a cover for each customer.

Enhanced customer experience: ChatGPT can enhance customer engagement by many folds and improve customer experience through personalized and instant support, leading to higher customer satisfaction. Most BOT conversations today are multiple choice questions in which you can make fixed choices, or you can choose to talk to customer support. ChatGPT will bring in more human and intuitive responses, if properly trained. The other upside is that it can smoothly manage many customer queries and offer instant support and resolution, thus taking the overall customer experience to the next level. It will also help the insurer improve efficiency by automating routine tasks like customer support, basic services, document deficiency fulfilment, refunds, and claims updates. AI can analyze the customer data, their claim history, and their entire customer journey and offer better prices and contextual loyalty programs accordingly. It can also help insurers enable multi-lingual customer service by translating customer queries and responding in the customer's preferred language.

Better the marketing experience: From a marketing perspective, ChatGPT can generate personalized and engaging content for sales campaigns to help reach the targeted audiences. Digital marketing can develop high-quality, optimized content for websites, improving their SEO scores and creating SEO-specific content. Aligning itself with the theme and tonality of the brand, it can create content for social media platforms, blogs, posts, product descriptions, and ad copy. Regarding search engine marketing, it can help generate specific ad-copies with keyword optimization to ensure maximum impressions and clicks are generated. It will be able to pinpoint ad-copies that may work and copies that may not work too. For e-mail marketing, it can help improve the content strategy by analyzing clicks, impressions, and open rates. Of course, it will take some time to develop those capabilities, as the tool will learn over some time. There could also be a case for conversational marketing analytics, where insights could be gained as per requirements and purpose.

Smart risk modelling and assessment: Regarding risk assessment in insurance, ChatGPT can act as a precursor to the proposal form or even become a proposal form. Imagine a scenario where all proposal and claim forms are conversational rather than standard responses. It will give unprecedented ease and comfort to the customer and speed up the processes. In the long run, ChatGPT can also move to voice recognition, will be able to answer the natural voice and understand tonality, and will be able to analyze the voice too and do sentiment analysis when the person is speaking. ChatGPT will be able to make informed decisions based on the way the customer is answering the question, the time they are taking to respond etc. This data can also be used to build better potential fraud identification models and understand the fraud propensity overall, also to raise real-time fraud triggers in a universe where there is a single id. across all financial institutions. In terms of pure risk assessment, it could act as a real-time assessment and even a rating/price engine based on current and predicted risk scenarios. This will also help build real-time risk models to better suit insurers’ requirements. Every organization could build custom algorithms, internal to them only, or choose to build a holistic one encompassing distribution partners, claim partners, employees, and of course customers.

Obviously, keeping customer data privacy intact becomes paramount when you have such sensitive information. While it will be part of the internal database of the organization, there could be apprehensions about the storage of such data, its usefulness, and its privacy. Companies which have built large data lakes and have adopted AI tech, that is constantly learning and improving itself will be able to tap the immense potential of ChatGPT. This AI is still at a nascent stage, and we are watching how it develops and evolves, but it indeed has many use cases and great potential.

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Tapan Singhel is the MD & CEO of Bajaj Allianz General Insurance Company Limited. This blog has been initiated by him so that he can directly interact with all the valuable customers and employees of this company.

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