Case for robot underwriters
24 Jul 2017
Rather than triggering massive job losses, automation will fill the insurance world with adaptive, tech-savvy employees who welcome change, according to AIG President and CEO Brian Duperreault.
He makes the comments in a LinkedIn article entitled Will Robots Take Over the Insurance Industry? This follows a survey that found nearly one-quarter of fintech professionals believe automation will cost them their job.
Mr Duperreault is optimistic, arguing automation will make insurance better and customer relationships stronger, and help attract the right talent.
He says automated policies could free small business owners to spend more time with customers, rather than with insurance agents.
While this may sound “scary”, he is not suggesting people are not required to write policies.
“Insurance will always remain a people business. It’s just that these people will be doing different things. The reality today is that a machine or algorithm can probably do a better job quickly producing a policy that meets my needs as a small business owner.”
In contrast, underwriting a major company is complicated and requires a skilled person and team, because a machine cannot do it alone.
And small business owners will not want to talk with chatbots or algorithms if they are confused about a “business-threatening” claim, he says.
“In my opinion, the biggest need in our industry will be having people who know how to use this technology to better manage risk for our clients and can help them in a time of need.
“Data can improve the work we do and make it more efficient. And for companies such as AIG, that means helping us to be better underwriters and risk managers.”