Generative AI: Redeemer for Insurance Ops Challenges or Simply Top of the Hype Cycle?
This Oct. 22-24, Genpact will be exhibiting at the LIMRA conference at National Harbor, Md. Erik Stockwell, Head of Consulting and Transformation at Genpact—and an industry veteran and an IIR source and contributor over the years—will be representing the firm and addressing a variety of industry issues, including new models underwriting and distribution, claims transformation and generative AI.
Chat GPT set into motion one of the most impressive hype cycles in recent memory. Artificial intelligence has been around a long time and has recently been gaining steam as a practical technology for business applications—including for the insurance industry—but Chat GPT’s debut evoked some of the more dramatic, impressive and even frightening aspects of AI. The result has been a renewed interest in the potential of AI for gaining competitive advantage, as well as what might be argued as a disproportionate degree of interest in Generative AI—the kind of technology behind Chat GPT.
In this podcast, we talk with Erik Stockwell about the opportunities presented by AI—including Generative AI and Large Language Models, as well as AI more broadly. We’ll talk about how AI is misunderstood, what it is and what it isn’t, the opportunity it presents and how to realize it for concrete business value. Most importantly, we take a thorough look at how AI can be an important source of value and competitive differentiation in the insurance industry.
Erik details the opportunity of AI in general and generative AI in particular to the insurance industry. In Erik’s view, AI requires a new discipline and a new mode of operationalization. He discusses how the six elements of AI—search, generate, classify, cluster, summarize and extract—serve as a guide for applying AI to the insurance value chain. He discusses how regulators are thinking about AI, and how the technology will require new skill sets and a new iteration of alignment between business and technology. Erik talks about gaining concrete business value as quickly as possible, and how external partners can help insurers to set up identify use cases and drive value. He also touches on Genpact’s focus areas for solutions in this early period for the industry incorporating Gen AI into its value streams: Knowledge Management, Underwriting Summarization, Claims Review and Regulatory Filing.