Generative AI (Gen AI) is the latest evolution in the development of artificial intelligence. With investor interest in the impact of AI increasing quarterly, it is no surprise that the topic has become an area of focus in boardrooms across the world in every industry.
Unlike previous iterations of AI, Gen AI has the ability to apply synthetic judgement to a range of inputs to generate new content such as datasets, scripts (including prose and computer code) and images. Insurers of all shapes and sizes are considering how to generate value from AI and Gen AI.
The answer will vary across different segments. In the retail insurance markets, executives are excited about the impact of creating personalised marketing content for social media platforms (think thousands of artificially produced TikTok videos targeting specific micro-segments) or enhancing contact centre interactions.
Oxbow Partners believes that humans will remain at the core of the specialty and reinsurance business for the foreseeable future and so specialty insurers and reinsurers will exploit use cases that enhance the machine-to-human interface. Use cases will be anything from bordereaux ingestion to claims file summarisation. Benefits will be found in both the loss ratio and expense ratio.
Is this just another blockchain? Oxbow Partners believes not. They have been unstirred by previous technology and InsurTech trends like blockchain and peer-to-peer models. But on AI and Gen AI in particular they are bullish.
What is really going on behind the headlines? How advanced are carriers with their AI initiatives in reality? Where are the greatest opportunities? What are the challenges that peers are struggling with? Should carriers lead or follow the market?
To answer some of these questions and provide guidance to executives, they have conducted a study of 22 specialty and reinsurance carriers.
To download and review the full report, click on the link below.
