4 Ways ChatGPT Can Bolster The Insurance Industry
With the advancement of technology, the insurance industry has been undergoing a significant transformation. The introduction of automation has already improved the industry, with a projection of up to 55% of major insurance functions being automated by 2030, upgrading up to 70% of insurance tasks. The latest language model, ChatGPT, developed by OpenAI, has the potential to revolutionize the insurance industry further. ChatGPT's capacity to respond to textual inputs cogently and persuasively can automate customer service, underwriting, claims processing, risk assessment, and other processes. Here are four ways insurance leaders can utilize ChatGPT:
1. Customer Support
Providing exceptional customer service is crucial for insurance companies. By training ChatGPT to understand and automatically respond to common customer inquiries, insurers can provide instant answers in multiple languages. This will lead to greater customer satisfaction and free up insurance employees to handle more pressing issues. Additionally, ChatGPT can assist in digitizing sales and distribution by advising customers on the most suitable products and services based on their needs.
2. Underwriting
Underwriting is the process of evaluating and assessing risk. Depending on the situation and quality of documentation, underwriting can take several days to weeks. ChatGPT can bolster data collection and analysis by scouring digital resources for similar cases, expediting risk assessment. With this predictive modeling, risks can be mitigated well before they become problematic.
3. Claims Processing
Claims processing is an area that has yet to see significant digitization. ChatGPT can extract and categorize information from claims forms and other documents, reducing the time needed for manual data entry and categorization. ChatGPT can also be trained to detect insurance fraud, identifying patterns of inconsistencies and flagging them for review by human claims adjusters. This can help insurers save a significant amount of money, as insurance fraud costs the average American family $400 to $700 in higher premiums.
4. Risk Assessment
ChatGPT can be utilized to automate and streamline the risk assessment process. With its capacity to respond to textual inputs cogently and persuasively, ChatGPT can identify risk patterns while saving valuable time. This predictive modeling can help insurers mitigate risks well before they become problematic.
ChatGPT has enormous potential for the insurance industry. However, insurers must view ChatGPT as a supportive tool rather than an outright replacement to the existing tech stacks or personnel. Nevertheless, ChatGPT will continue to streamline insurance industry operations from top to bottom as the technology evolves.
