The Impact of AI on Insurance in 2024

For an industry that is usually slow to change, the insurance industry is undergoing a period of intense transformation, primarily driven by advancements in artificial intelligence (AI). The rapid evolution of AI and automation in insurance, including cutting-edge solutions such as DigitalOwl’s AI-enhanced medical record summaries, are fundamentally altering the way insurance professionals assess risk, reshaping traditional insurance practices and introducing new efficiencies.

Deloitte’s 2023 Insurance Outlook found that many carriers benefited from the technology transformation driven by InsurTechs last year. This was especially true for point solutions offered by enabling startups in underwriting, claims, and online distribution platforms.

“Technology and resulting improvements in risk selection and pricing are likely to remain the primary drivers of improved bottom-line performance,” according to the Deloitte report.

Looking ahead, Deloitte advised carriers to strive to maintain the momentum of creative adaptation, while becoming increasingly proactive, innovative and customer-centric, urging insurers to transition from “responding to requirements of regulators and other industry overseers to more proactively anticipating and fulfilling distributor and policyholder expectations, setting themselves apart in an increasingly competitive market.”

2024 AI Trends

Here are the anticipated major trends in AI for the insurance industry in 2024, reflecting the evolving technological landscape and its impact on the sector.

1. Increased investment in AI

A 2023 survey by research and advisory firm Celent found that 84% of surveyed organizations, including insurers, financial institutions and other organizations, believe that investing in Gen AI will provide a sustainable competitive advantage. Therefore, it’s not surprising that 65% of surveyed organizations have mature or maturing Gen AI initiatives, indicating significant investment into the development of these products.

2. Greater focus on standardized data

In 2024, insurers will increasingly partner with third-party vendors to tailor offerings and standardize data exchange. Currently underwriters and claims adjusters are struggling to access the vast amounts of data locked in their systems. Digitizing these files will make the data significantly more accessible, opening up a treasure trove of hidden insights that will significantly enhance the decision-making process.

“Brokers increasingly expect carriers to help their productivity by providing technology capabilities for digitization and virtualization across all activities,” according to the Deloitte report.

3. Enhanced competitive policy pricing

Looking ahead, many insurers intend to leverage AI's capacity for analyzing extensive datasets to enhance policy pricing. AI's ability to efficiently and precisely evaluate various risk assessments allows adopting insurers to refine policy pricing accuracy, thereby elevating customer satisfaction.

4. Overhaul of outdated workflows

In 2024 and beyond, insurers are expected to further embrace the ability of AI to make key decisions in areas like coverage levels and claims recommendations to leverage its full benefits. According to a 2024 report by service provider Xceedance, most insurance workflows were designed over 60 years ago and have remained largely unchanged. Integrating AI capabilities into existing processes could lead to a more efficient and precise approach to insurance operations.

5. Greater individualisation

The shift from manual review processes to AI-powered reviews will enable insurers to quickly and accurately analyze extensive datasets, allowing for greater precision and more personalized insurance policies. In 2024, the increased adoption of AI is anticipated to help insurers better manage risks and refine pricing strategies for a more sustainable and profitable business model. AI-assisted chatbots are also expected to become more common on insurance companies’ websites, providing instant recommendations for more personalized customer experiences.

“Many carriers still too often treat data as an infrastructure expense, rather than as a strategic asset that can help them learn more about customer needs and preferences in terms of products and services” according to the Deloitte report.

How to use AI in the insurance industry

There are numerous AI use cases in insurance, including life underwriting, post-issue audits, life claims, disability claims and long-term care claims. Using AI in life insurance and insurance underwriting can enable data-driven decisions, improving time to client and decreasing mortality slippage. The following are benefits associated with using DigitalOwl’s AI-powered solutions:

• Streamlines underwriting processes with de-duplicated data, in-depth filtering and standardized data
• Reduces the time it takes to review medical records from hours to minutes
• Increases underwriting capacity
• Standardizes underwriter training
• Provides a comprehensive view of an individual’s health profile by viewing all relevant impairments in one place

Innovative AI Solutions

DigitalOwl is the leading AI-powered platform for insurance, claims and legal professionals to transform complex medical records into actionable insights. Our all-in-one platform enables customers to transform structured and unstructured data into concise summaries and spreadsheets within hours, not days, reducing time spent by up to 72% while maintaining 97% accuracy.

Our medical summarization “View” product maximizes efficiency and reduces costs without overlooking any details amid vast data and pages, pinpointing crucial information. Our “Triage” product fully automates the triaging process by automatically flagging pre-defined data points from a bulk of cases, enabling quick filtering for compliance and misrepresentation. Our sophisticated API “Connect” product seamlessly integrates into existing systems, enabling faster and more accurate decisions with the ability to fetch data from each layer. Finally, our revolutionary “Chat” product reduces the time-consuming process of searching medical records for information by enabling users to directly question records, getting the information they need directly from the source.

Contact DigitalOwl to learn more about our advanced AI solutions for insurance and claims, and be sure to schedule your demo with our experts today. Don’t forget to follow us on LinkedIn so you never miss out on updates and the latest InsurTech industry news.

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