The Essential Role of Humans in the Insurance Industry!
At some point, we all envisioned a future dominated by robots. As insurance professionals, we welcome these advancements as AI brings efficiency, speed, and the removal of mundane tasks. However, the debate remains; can the human element, especially in insurance, ever be replaced?
The customer we see today, is vastly different from the customer of the past, requiring personalized customer service. We cannot treat every customer the same way anymore. Understanding what our clients need is key, especially since some still want that human touch. While robots and AI are great for handling data, they cannot build real connections with our customers. So, what does this mean? Robots and AI models are built specifically for data and not necessarily for building customer relationships.
The insurance industry is complex and often requires human decision-making, judgement, and expertise. We can all agree that no two claims are the same, having said that, complex claims handling still requires an adjuster to ensure fairness. Furthermore, underwriters in some instances use intuition regarding risk assessments, which AI might overlook.
The insurance industry is competitive with insurers opening frequently, leaving clients with many options to choose from. For this reason, building trust and relationships is paramount and can only be built with human interaction. Relationships of trust are built with action, meaning fulfilling promises. Humans play a huge role in maintaining reliability – enhancing the insurer’s reputation, and leading to customer retention, which is essential for long-term sustainability and profitability.
As an insurer, it is important to handle crises efficiently and to remain compliant. During a crisis, humans can provide reassurance and offer support, which machines cannot. A customer is likely to stay with a proactive insurer and with a robust risk management framework in place. For an insurer to remain compliant, regular audits and monitoring are still performed by humans, ensuring the highest standards of transparency and integrity in their reporting and operations.
Finally, the claims landscape is crucial. Humans show empathy when people have experienced a traumatic event, and this need is non-negotiable. Due to the lack of emotional intelligence that AI can display, humans are essential for making our customers feel valued and heard.
Technology should be used as an enabler to create efficiencies, but not as a final solution, highlighting the need for human intervention. Rather than being replaced by machines, humans will continue to play a vital role, complemented by technological advancements, to provide the best possible service to clients. The question remains, is it Man vs. Machine? My answer is simple – there will always be a need for humans.
Article Written by Deidre Henneberry | IIG Co-opt: Education
