Technology plays a pivotal role in shaping the future of the insurance sector, says Arun Balakrishnan, CEO of Xceedance.
In advance of his visit to Sydney for the 19th ANZIIF Australian Insurance Industry Awards on 24 August 2023, Mr Balakrishnan has highlighted the need for the insurance industry to adopt technology-driven solutions.
He says insurers need to craft insurance products that effectively manage contemporary risks in our interconnected world and underwrite policies that genuinely reflect the complete range of risks.
“The integration of technology is inevitable and artificial intelligence (AI) and related methods will play a crucial role in this transformation,” Mr Balakrishnan says.
Xceedance has demonstrated the practical use of technology through the Azure Open AI Service and ChatGPT. That combination streamlines the extraction of essential information from lengthy property policy documents, reducing the process from hours to seconds. The tool functions like a property risk assessor when prompted accurately.
“Generative AI offers a practical solution to improve risk assessment, policy review automation, and underwriting accuracy,” Mr Balakrishnan says.
He emphasises the importance of understanding prompt engineering to leverage the technology effectively.
“Language models can significantly enhance risk assessment by analysing extensive data and evaluating potential risks associated with insurable assets. Continuous learning through prompt engineering ensures the models adapt to evolving risks.”
Mr Balakrishnan says well-structured prompts enable language models to extract specific details, such as policy numbers, policyholder information, claim amounts, evidence, and incident descriptions. Integrating those models with customer service systems like chatbots can streamline interactions and offer personalised responses.
The integration of AI and prompt engineering can bolster fraud detection capabilities, helping insurers identify patterns in high-risk or suspicious claims. “Tailored prompts guide investigators toward potentially fraudulent activities,” Mr Balakrishnan says.
Language models can automate time-consuming tasks that usually demand extensive manual effort. The synergy between technology and insurance processes has the potential to reshape industry practices.
“As our world becomes more connected, integrating embedded insurance in everything and anything we do will power the next phase in the insurance industry’s evolution,” Mr Balakrishnan says.
Xceedance is the sponsor of the Claims Team of the Year award at the ANZIIF Australian Insurance Industry Awards.
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