How will AI change your future insurance experience?

What is AI?

‘AI’ is the term applied to technology that can perform tasks that typically require human intelligence, such as perception, reasoning, learning, and decision-making. It can be used to analyse large amounts of data to quickly identify patterns.

Currenlty, perhaps the most high-profile AI tool is ChatGPT, a highly intelligent language processing tool that’s designed to understand questions asked of it and generate accurate and relevant human-like responses. 

Industries such as education and healthcare have been quick to embrace ChatGPT technology. It’s also being used by some insurance companies to analyse data (for example, as part of the underwriting process) and provide insights into customer behaviour.

AI tools such as ChatGPT help assess information with more efficiency

However Crombie Lockwood's Executive Marketing & Client Experience, Debbie Lowe doesn't believe AI can replace the role of a broker.

Crombie Lockwood has been providing insurance advice and arranging cover for New Zealanders since 1978, combining local and industry knowledge with insurance expertise to keep clients protected when things go wrong.    

Debbie believes that the need for understanding the nuances of each client’s individual circumstance makes the role of a real-life insurance broker irreplaceable.

The irreplaceable human touch

Crombie Lockwood’s mission is to position clients to financially survive any insurable event, and that requires a human touch. Crombie Lockwood’s brokers are able to give tailored advice through conversation where they can ask probing questions, pick up body language and other cues, which AI may not be able to do.

Debbie continues: “It’s important that advice happens through conversation where consideration can be given to the cover a client has or doesn’t have, what their future plans are and what things might be coming around the corner for them, both good and bad.

“Ensuring that advice is tailored is really important, particularly for when the client has an event that they need to claim for. Any assumptions made through AI or ChatGPT may not be right for the client’s circumstances. This could mean that the client has an issue at claims time, which would be the worst outcome.”

Empathy guiding the process

Debbie believes there is some potential to use AI for simple claims, but if a claim does become complex, “again, you need that human touch. You need someone overlooking what the technology is doing for you.”

“Crombie Lockwood’s claims teams are currently managing claims for the recent flood events and Cyclone Gabrielle.  “They’re there to listen so the client can get what’s going on for them off their chest. Then they can talk about the claim and what needs doing. It is an emotive thing. You want the human touch, empathy and human judgment to guide the process, and that’s what our people offer which AI can’t.”