The impact of AI and ChatGPT on the insurance sector

On December 4, 2024, the Insurance Academy discussed the impact of AI in insurance, highlighting product customization, automated claims and improved fraud detection. While 81% of executives see AI as a priority, ethical and regulatory challenges remain, including data and bias management. AI is also transforming the financial sector, despite concerns about regulation and the need for appropriate skills.

FACTS

• On 4 December 2024, the Insurance Academy held a session dedicated to the impact of AI and ChatGPT on the insurance sector.
• This event provided an overview of the major trends and opportunities offered by the integration of Generative AI (GenAI), while examining the challenges that result from it.
• Among the topics discussed were the customisation of insurance products, made possible by the AI, which enables offers to be tailored to the specific needs of customers, thereby improving their satisfaction.
• The streamlining claims processes was also highlighted, with examples of automation allowing for faster and more accurate processing of files.
• In the field of fraud detection, The use of advanced algorithms to identify abnormal behaviour and fraud attempts was welcomed as a major step forward.
• However, these innovations are accompanied by important ethical and regulatory challengesin particular as regards the Data confidentiality and bias management in the d的IA models.
• According to the KPMG 2024 report, 81% of insurance executives regard GenAI as a strategic investment priority.
• However, despite this enthusiasm, barriers remain, including the lack of specific skills within teams to fully exploit AI's potential and concerns about ethics and regulatory compliance.

ISSUES

• An improvement and customization of the customer experience The AIA revolutionizes the way insurers interact with their customers by offering tailor-made products and services that are perfectly tailored to the specific needs of policyholders. This customization approach reinforces customer satisfaction and loyalty.
• Operational optimization and the fight against fraud Thanks to automation, AI simplifies internal processes, reducing processing times and increasing efficiency. In parallel, advanced algorithms strengthen fraud detection, identifying complex anomalies and automating responses to threats.
• Ethical, regulatory and human challenges Despite its benefits, the AI raises crucial questions about transparency, algorithmic biases and data protection. In addition, while 76% of CEOs consider that AI will not eliminate jobs, 58% believe that it is necessary to rethink team skills to maximize the opportunities offered by these technologies.

PERSPECTIVE

• Artificial intelligence upsets the entire financial sector, offering new opportunities such as intuitive research and multimodal conversational agents predicted by Google Cloud to transform financial services by 2025. Banks and insurers adopt these advanced technologies to improve their productivity and offer an ever more personalized customer experience.
• The AIA raises major ethical and regulatory concerns. According to KPMG, 72% of insurance managers are concerned that the slow pace of regulatory change may hinder innovation. Globally, institutions such as the European Union are developing legal frameworks to ensure the responsible and transparent use of AI technologies.
• It is not limited to the financial sector: it redefines the boundaries of many economic areas, with disruptive applications in drug discovery or predictive analysis of supply chains. Its transformative potential underlines the importance of collaborative innovation and tailor-made solutions to meet tomorrow's challenges and maximize opportunities.

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