We conducted a study of 22 specialty and reinsurance carriers and all participants agreed that Gen AI is going to be transformational in the longer term (5+ years)
Insurers of all shapes and sizes are considering how to generate value from AI and Gen AI. The answer will vary across different segments. In the retail insurance markets, executives are excited about the impact of creating personalised marketing content for social media platforms (think thousands of artificially produced TikTok videos targeting specific micro-segments) or enhancing contact centre interactions.
We believe that humans will remain at the core of the specialty and reinsurance business for the foreseeable future and so specialty insurers and reinsurers will exploit use cases that enhance the machine-to-human interface. Use cases will be anything from bordereaux ingestion to claims file summarisation. Benefits will be found in both the loss ratio and expense ratio.
Is this just another blockchain? We believe not. Oxbow Partners was unstirred by previous technology and InsurTech trends like blockchain and peer-to-peer models. But on AI and Gen AI in particular we are bullish.
What is really going on behind the headlines? How advanced are carriers with their AI initiatives in reality? Where are the greatest opportunities? What are the challenges that peers are struggling with? Should carriers lead or follow the market?
