Technology has shifted the path of almost every industry at an unprecedented pace and the insurance sector is no exception. As we approach 2024, insurers are taking advantage of innovative technologies to meet the evolving expectations of customers and simplify operations. The increased demand for insurance tech solutions is a result of several factors. The insurance industry’s future will be shaped by the most important insurtech trends, e.g., self-service capabilities and personalized insurance apps, predictive analytics and GenAI.

As customer preferences shift towards digital interactions, insurers must adopt an omnichannel approach to meet their expectations. Customers expect consistent and integrated experiences across various channels like websites, mobile apps, social media and chat platforms. The implementation of an omnichannel strategy offers better customer experience, supports loyalty and gains market share.

Generative AI:

GenAI applications can make vast sources of information, both internal and external. As a result, knowledge and skills will become much more readily accessible for businesses in the rapid adoption of GenAI. Large language models enable enterprises to connect their employees with knowledge in a conversational style with rich semantic understanding.

The combination of massively trained models, cloud computing and open source is making these models freely available to GenAI enthusiasts around the world. Gartner forecasts that, in 2026, more than 80% of enterprises will have adopted GenAI API and model applications as well as deployed or are planning on deploying them in production environments, up from only 5% at the beginning of 2023.

AI platforms might make businesses more vulnerable to security issues because they demand a constant stream of data to be collected and processed. IT must ensure the platform has robust security measures to protect sensitive data and prevent unauthorized access.

The potential of GenAI is also of interest to small and medium-sized enterprises. By 2025, Gen AI adoption is expected to restructure sales and reduce nonrevenue tasks by 45%. To do so, everyone needs to improve their processes and explore sustainability technologies. Both GenAI and cloud are resulting in heightened concerns about data security.

AI Trust, Risk and Security Management (AI TRiSM):

It is an emerging technology trend that will revolutionize businesses in the coming years. The AI TRiSM framework helps identify, monitor and reduce potential risks associated with using AI technology in organizations, including generative and adaptive AIs. Last year saw bans and restrictions of ChatGPT and other generative AI tools by companies, social media platforms, educational institutions and other agencies.

Besides business perspectives, governments and the public have been raising concerns on the essence of the potential dangers, risks and threats of AI in the absence of ethical and responsible considerations. It would be better if AI TRiSM had been made as a mandatory check to deploy AI projects into production.

Thus, AI models, objectives and the ecosystem should align with business KPIs, ESG and DE&I indices. Model explicability, risk management and monitoring, privacy, security are the fundamental pillars of AI TRiSM. Leaders should incorporate these considerations to ensure high AI TRiSM in their organization.

Points to Note:

Today, customers are willing to take advantage of accessing policy information, making payments, submitting claims and monitoring their coverage from the comfort of being in their homes. They want immediate attention for their queries. In response, insurers must develop user-friendly mobile apps and web portals that empower policyholders with self-service options.

Insurers will be able to create seamless digital experiences, enhance customer satisfaction and optimize internal processes by incorporating Custom Insurance Apps and Customer Portals. This allows insurers to reduce customer acquisition costs, improve retention rates, increase productivity, expedite claims processes and foster loyalty among policyholders which impacts on a greater scale.

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