Author: Bastiaan de Goei, Insurance Industry Leader
The power of artificial intelligence continues to grow at an amazing rate. Just look at the rapid advancement of ChatGPT. The “GPT” in ChatGPT refers to generative pre-trained transformer language models, a new kind of AI more commonly referred to as generative AI. The practical applications of this type of advanced AI are frequently referred to as ‘Applied AI’.
By expanding on deep learning to enable instant understanding of complex documents, this new wave of AI presents a number of great opportunities for automation in the insurance industry. These were some of the topics that were discussed at the recent panel hosted by Insurtech Insights “How Will ChatGPT Impact Insurance?”. Participants were Instabase Insurance Leader Bastiaan de Goei, Alchemy Crew CEO Sabine Van der Linden, and Paul Tyler – CMO at Nassau Financial Group. Click below to view the discussion:
Moving from Deep Learning to Large Language Models
Deep learning is a subset of machine learning that has been popular for a few years now. Deep learning models are trained on dozens, hundreds, or even thousands of data points. The more data a deep learning model ingests, the better it becomes at solving highly complex problems in a similar way to how the human brain works.
In a more recent development, Generative AI takes things a bit further. The underlying technology behind generative AI is large language models. Large language models are a form of Deep Learning models but trained on far more data. As a result, they are smarter and require no additional training on specific document types. Instead, large language models understand new and complex document types on the first submission. This leap forward in AI allows for instant automation of many insurance processes which the panel discussed, including claims processing and commercial submissions automation.
Advantages of Instabase Modularity
As Bastiaan discussed, Instabase is designed as a modular platform. This unique approach allows Instabase to quickly leverage new technologies such as generative AI as they become available. The platform provides a future-proof way for clients to access the latest in technology without the costly ‘rip-and-replace’ scenarios that often occur when organizations need new tech.
The Instabase platform offers advanced security and enterprise-level certifications, giving clients confidence as they make use of all available Applied AI technology.
Insurance Automation Applications that Leverage GPT
During the panel, Bastiaan identified a variety of existing opportunities to leverage GPT, with full recognition that other opportunities are on the horizon as technology advances. Here are just three of the top use cases for Applied AI in insurance.
- Instant understanding of complex documents. An important way in which Applied AI enhances insurance automation is by understanding complex documents. Using LLM models, Instabase can achieve document understanding with a high degree of speed and accuracy without the need to train models on hundreds of documents. This capability applies to application evaluation, risk assessment, claims, and other processes.
- Actuarial risk modeling. Assessing portfolio risk is a critical role of an actuary in the insurance sector. However, as a portfolio of policies can contain tens of thousands of complex written contracts closed by many different underwriters, brokers, and agents, it can be hard for an actuary to verify that all policies adhere to the latest inclusions and exclusions and other terms and conditions. With new LLM models, it will be much easier to compare policy contracts and identify policies that contain unfavorable terms and conditions.
- Call center optimization. Questions about coverage drive a large percentage of call volume in insurance and brokers’ call centers. Historically, chatbots didn’t have the capability to fully understand incoming questions, look up the right information, and respond as effectively as a human would. Generative AI is much more advanced and allows for increased automation and humanlike interactions. It can provide intelligent summaries of coverage and limits in line with the customer’s request. It can also translate into multiple languages, or provide a simplified explanation of terms and conditions, which is a huge benefit in a diverse insurance market.
Leverage Generative AI with Instabase as Your Trusted Partner
These use cases illustrate the versatility and opportunities that generative AI enables. From generating quotes to communicating more effectively with brokers to streamlining customer claims interactions to increasing straight-through processing, generative AI opens up an exciting new frontier for the insurance industry.
Instabase is on the cutting edge of technology, utilizing the most current generative AI tools available to facilitate intelligent automation for insurance. Achieve faster, more accurate risk assessment and humanlike automated interactions with brokers and clients with Instabase.
