As we look ahead, the role of artificial intelligence (AI) in life and annuity will continue to evolve, offering significant opportunities for carriers to enhance their strategies and processes. In a recent panel discussion, Ben Brantley, CTO of Sureify, joined industry experts Jack Baker from Farmers Insurance and Chad Hersh from AWS to explore the impact of AI on the life and annuity industry. While AI has made its mark in various industries, life and annuity remains in the early stages of adoption. According to the panel, most AI applications are still in the proof-of-concept phase. This is particularly true for areas like underwriting and process automation. The cautious nature of the insurance industry aligns with the desire for a more measured approach to AI implementation.
Here’s where the panelists see our industry going and the actions carriers can take to better leverage AI today and in the future:
Current and Future AI Applications
Despite the early stage of AI adoption, there are already clear examples of how AI is adding value. Presently, AI is primarily being used for decision support and process automation. For instance, AI systems are being employed to summarize underwriting documents, enabling faster decision-making and improving operational efficiency.
Looking forward, the future potential of AI lies in deeper integration into business workflows. The panel envisions AI tools becoming instrumental in claims processing, providing real-time, data-driven insights to agents, and even assisting in customer service. These applications could transform how carriers operate, creating more streamlined processes and enhancing overall customer experience.
Challenges to Overcome
As promising as AI’s potential is, there are significant challenges to address before it can be fully realized. For AI to deliver value, carriers must ensure that their data is not only accessible, well-structured, and clean, it must also be actionable. Without the support of workflows, AI models cannot perform effectively, limiting their utility in key business functions.
Another major concern is bias and fairness in AI models. The panel noted that carriers must be vigilant about potential biases embedded within AI algorithms, as these could lead to unfair or discriminatory practices. This is especially important given the growing regulatory scrutiny of AI applications in life and annuity.
Recommendations for Advancing Your AI Strategy
For carriers focused on advancing their AI strategies, the panel offered several key recommendations. First, they encouraged experimentation—testing different AI models and tools to understand their capabilities. The importance of incremental integration was also stressed. Rather than rushing to overhaul entire business processes, carriers should begin by integrating AI into specific areas and gradually expanding its use. For those seeking AI speed-to-market, they recommended the use of low-level models to support specific tasks. This approach allows for more manageable implementation and reduces the risk of disruption.
While life and annuity has been slower to adopt AI, this cautious approach may ultimately be advantageous. By waiting for more mature AI solutions to emerge, carriers can avoid early pitfalls. With the advantage of best practice knowledge, they will better understand the infrastructure needed to effectively utilize AI and the types of solutions that will yield reliable results. Sureify is working closely with carriers to proactively build infrastructure which enables them to capitalize on the transformative potential of AI.
Interested in the full discussion? Watch the replay now.