The Insurance Institute of Gauteng, in partnership with OMI, hosted a successful online session on the 26th of September.
The session was presented by Denver Naidoo, Chief Data Officer: of OMI who started the presentation by saying that data is a transformative tool, but the human element should not be overshadowed by this, asking the all-important question: “Where is the U in data”?
So, where is the YOU in the data?
The current era we are in is driven by numbers and models, understanding “you” in the world of artificial intelligence and big data is key, as finding the balance between human insight and technology is more relevant than ever before. The human element is crucial for aligning expertise, ethical standards and customer expectations.
Can AI Replace Your Role?
The introduction of automation brought along many questions and concerns about how humans will remain relevant in the age of technology, AI and automation.
- A study by WorkVue indicated that automating most tasks could lead to a 71% work substitution rate, significantly increasing employee capacity.
- The IMF expects that around 60% of jobs in the insurance sector could be impacted by the GenAI revolution.
Furthermore, the question of whether AI replaces human roles in the insurance sector is debatable. The answer is both yes and no. Automation assists with removing mundane routine tasks, like data entry but it still falls short of providing intuition for complex problem-solving and ethical judgement.
Leveraging Data and AI as an Asset
Denver highlighted the following benefits of leveraging data and AI as an asset:
– Fraud prevention – Faster claims processing
– Risk assessment – Operational efficiencies
– Personalisation – Improved customer experience
Data Leveraged in Underwriting Processes, Claims and Customer Service:
Automated Underwriting
Implement algorithms that automatically evaluate applications based on predefined criteria, speeding up the underwriting process and reducing human error.
Streamlined Communication
Utilize AI-driven tools to provide instant responses to customer queries, improving communication and satisfaction during the claims process.
Sentiment Analysis
Analyze customer feedback and sentiment from surveys, social media, and reviews to gauge satisfaction and improve service quality.
Skilled professionals are still a vital part of the AI integration process to guide utilization and to provide elements like empathy that AI is unable to provide. According to Denver, a common oversight in the insurance industry’s reliance on data is the neglect of the human element. While data analytics and technology provide valuable insights, they cannot fully capture the complexities of human behaviour, emotions and ethical considerations. Therefore, balancing data with human judgement is crucial for maintaining customer-centric and ethical business practices.
Article written by Deidre Henneberry | IIG Education
