Insurers urged to deploy GenAI to transform customer experience 

• Personalised, efficient, user-friendly possible

 Cynthia Ezekwe

In a time of increasing customer expectations, the insurance industry is facing a major challenge to provide fast, personalised service while still maintaining a streamlined experience.

To help the insurance industry meet the challenge of changing customer expectations, EXL Service, a global analytics and digital solutions company, has called on insurers to adopt the integration of Generative Artificial Intelligence (GenAI) into their customer experience strategies.

According to EXL, the implementation of GenAI by insurers will have a significant impact on the customer experience. It noted that with GenAI, insurers can provide a more personalised experience that is tailored to the individual needs of each customer, while enabling insurers to stay ahead of the curve and remain competitive in an ever-changing market.

Deepti Kalra, vice president & head of AI products & solutions at EXL, has been vocal about the need for insurers to embrace GenAI to elevate the customer experience. Recently, Kalra noted that GenAI has the potential to transform the insurance industry by providing a more personalised, efficient, and user-friendly experience. 

Kalra believes that the value of Generative AI for businesses is undeniable. From more innovative products and enhanced customer experiences to greater productivity and monetisation of data, she sees GenAI as a game-changing technology for insurers. She further noted that GenAI can improve the efficiency of insurance products by automating processes, improving data quality, and reducing costs.

Kalra’s comprehensive overview of GenAI solutions demonstrates the wide-ranging benefits of this technology for businesses and consumers alike. She explained that from more engaging and efficient customer service to faster, more productive development processes, GenAI is poised to revolutionise the way businesses operate. As Kalra noted, these benefits ultimately translate to a better overall experience for customers across multiple touchpoints, including digital and in-person interactions.

She added, “In the world we now operate in, insurance firms need to innovate in order to keep pace with technology and their customers. With the technological revolution in full swing, the building blocks for insurance companies to bolster their own customer experience  through a GenAI solution are now readily available.’’

The AI expert with over 13 years experience in AI development and management consulting, emphasised the importance of customer experience in the insurance industry, noting that it is a particularly important factor in shaping consumer perceptions and satisfaction. Given that insurance is often seen as a necessary and heartfelt investment, the experience a customer has with an insurance provider can have a significant impact on their overall perception of the company and their satisfaction levels. Therefore, Kalra stressed that providing a high-quality customer experience is a critical element in ensuring the success of an insurance business.

“The future will seemingly be based on adapting to the ever-evolving technology. Winning that race with the sector’s new and old incumbents will be key to success. With an eye on 2024 and beyond, firms will be looking to move with the times – and operate ahead of their competitors if they are to offer the best possible solution for their clients,’’ she explained.

According to Kalra, the insurance industry is one in which trust and peace of mind are crucial drivers of customer choice. She argued that by leveraging comprehensive data and profiling, insurers can create personalised insights and recommendations that better meet the needs of their customers. This, combined with a seamless integration of insights into existing workflows, has the potential to transform the customer journey and drive growth and satisfaction. 

For insurers looking to enhance their customer experience, Kalra identified several ways that GenAI can be leveraged. Firstly, GenAI can be used to provide highly personalised products and services that are tailored to the specific needs of each individual customer. Secondly, it can be used to improve underwriting capabilities by generating accurate risk assessments and generating more accurate pricing models. Thirdly, it can be used to detect fraudulent activity more effectively, reducing the risk exposure of insurers.

Kalra acknowledged that the insurance industry has traditionally been slow to embrace new technologies, due to factors such as complexity, legacy systems, and regulatory constraints. However, she observed a shift in mindset as insurers increasingly experiment with GenAI and recognise its potential to transform the industry. This is evident in the growing number of GenAI pilots and proof-of-concepts being conducted by insurers. While there is still some hesitation, Kalra sees a bright future for GenAI in the insurance sector.

In addition to highlighting the benefits of GenAI, Kalra also noted that insurers are becoming more open to adopting this technology responsibly. This includes ensuring that GenAI systems are developed and implemented in a way that is ethical, transparent, and accountable.