AI and Life Insurance

A woman is photographed with colorful computer code superimposed on her.

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AI, artificial intelligence, is the latest trend among technology companies and the buzzword to intrigue business professionals and customers. Companies might use their AI to conduct business, analyze customer data, or attempt to predict future business outcomes. On the contrary, a business may produce an OpenAI system that allows the public to interact with prompts to help artificial intelligence learn. OpenAI consists of a group of generative AI models that produce code, language, or images. Generative AI “enables users to quickly generate new content based on a variety of inputs. Inputs and outputs to these models can include text, images, sounds, animation, 3D models, or other types of data.”

How will AI positively impact life insurance?

Media outlets are beginning to ponder the above question to their readers and viewers. What does this new era of evolving AI mean for life insurance? Some AIs can examine in-depth written material and information more efficiently than others, such as large language models (LLMs). They may also assist in automating intricate business processes that involve natural language. Appropriately utilizing AI can result in improving the customer experience. Workers could instruct artificial intelligence to make customized marketing materials, personalized policy offers, and customer communications. Insurance companies may find AI useful as well. Generative AI can build synthetic customer data for training without disturbing the privacy of real customers. Companies may also be better equipped to detect fraud with adequate artificial intelligence recognizing patterns and markers of potential fraud. This approach could benefit both consumers and companies.

Many large and small businesses invoke chatbots to handle customer inquiries online. These computer programs give clients a conversational experience similar to interacting with a real person. Proponents of using chatbots over human beings will argue that this artificial intelligence can help customers at all hours of the day or night regardless of location and without language barriers. But chatbots and artificial intelligence can still commit errors, correct? Statistics state that “chatbots are capable of completing 70% of conversations.” That still leaves a lot of unsatisfied customers.  

What is the negative impact?

There are certainly drawbacks to having a machine attempt to decipher vital information like life insurance data. Artificial intelligence could have programming biases or errors that fail clients. It will mostly depend on the human programmer to input the correct information into the AI machine so it can learn and interact accordingly.

Some argue that chatbots and other forms of artificial intelligence will eventually replace many people at their jobs. I don’t think that is the case with insurance and many other fields of work. Artificial intelligence lacks originality and the ability to create original work. A.G. Danish also points out other positive human characteristics that artificial intelligence cannot duplicate.

  • emotional intelligence
  • contextual understanding
  • common sense
  • adaptability
  • ethics
  • intuition
  • physical dexterity
  • interpersonal skills
  • imagination
  • free will

In insurance and many other vocations, you cannot replace human interaction. Clients are more at ease interacting with a human being and knowing a person solved their issue or problem. A recent poll found that 77% of respondents who have interacted with a business chatbot would rather interact with a human for customer service needs. A computer or machine might have a hiccup and forget the person it helped or the situation it fixed. Then, there is no record of your solved problem, no human is aware of the mistake, and you will have to go through the entire process again. You cannot replicate the reassurance of your policy being taken care of by a well-meaning human agent. At Empower Brokerage, you can trust our friendly licensed agents to help you find the policy that works best for you.

If you enjoyed reading this article, please check out another one of our articles about the reskilling revolution.

Life Insurance Questions?

We hope that this information on AI and life insurance is useful to you.

If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.

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About Joey Hinojosa

Joey Hinojosa graduated with a bachelor's degree in broadcast journalism and a master's degree in mass communications. He began working at Empower Brokerage in early 2022 and enjoys being creative in his writing, photography, videography, and other projects.

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