Artificial Intelligence: Boon or Bust for Insurance Brokers?

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By FINTECH Books Contributor, Steve Anderson
Follow: @SteveTN

Artificial intelligence, machine learning, and natural language processing are a technology that is improving rapidly and quickly moving from theoretical to practical applications. What are the implications for insurance agents and brokers?

Many people will look at these advances as scary. They say that a machine can never do their job. A machine will never be able to provide the same type of advice that a live agent does. However, low cost and easy to use platforms are currently available that allow agents and brokers to take advantage of this technology to enhance their delivery of advice and expertise to prospects and clients.

Three initial uses for machine learning technology that benefit insurance agents and brokers include:: Capture the knowledge, skills, and expertise from a generation of insurance staff before they retire in the next 5 to 10 years and use it to train new employees.

Employee Augmentation: Provide personalized answers for a variety of insurance questions. Digital consumers want to get answers to their questions anytime – not just when an agent’s office is open.

Personalized Digital Answers: Create and deliver a digital annual account review for personal lines or small commercial insurance accounts. An analysis increases client satisfaction creates cross-selling opportunities, and reduce errors and omissions problems for the agency.

Digital Annual Account Review: There may be some that read this and think artificial intelligence and machine learning will be the end of the insurance agents as a trusted source for proper protection against financial losses. For insurance agents that are simply “order takers,” it will be a threat.Brokers that embrace technology will always find opportunity.

For those organizations that can see the potential, machine learning will provide another way to engage and interact with the digital customer.