Insurance policyholders seek assistance from artificial intelligence in insurance-related issues
The insurance industry is witnessing a significant transformation, with artificial intelligence (AI) playing an increasingly crucial role. This shift towards digital innovation is evident across the globe, including in Germany, where the adoption of AI is on the rise.
According to recent surveys, a substantial proportion of Germans are open to AI assistance in their insurance journey. For instance, 47% would like AI to help them fill out insurance applications, while 39% are interested in having an AI evaluate their existing insurance contracts and suggest alternatives. Younger age groups, particularly those between 16 and 49, show a higher approval rate for AI-assisted application processes, with 52%-53% expressing their willingness. Even among older demographics, such as those over 65, 38% would be open to using an AI-assisted application process.
AI is being leveraged to streamline insurance operations, making them more efficient and customer-friendly. Insurers are integrating AI into core areas like claims handling and underwriting to enhance accuracy and efficiency. AI is also being used to improve customer experiences through personalized interactions, providing answers at any time and comparing tariff options transparently.
The success of AI systems in insurance will depend on trust, transparency, and data protection, according to Bitkom. Insurers are adopting AI cautiously, addressing challenges such as ensuring accuracy, addressing data privacy concerns, and navigating regulatory complexities. Despite these challenges, insurers view AI as a key accelerator for growth and innovation, allowing for more efficient services and improved profitability.
AI-first business models are showing promising growth, particularly among start-ups. An AI-first managing general agent (MGA) has sold a large number of policies with minimal employees, demonstrating the operational efficiency of AI-driven insurance solutions.
However, the use of AI in sensitive areas such as health data raises concerns among respondents. Insurers are grappling with data privacy issues associated with AI adoption, as there are concerns about regulatory clarity and ensuring secure data handling. Consumer advocates warn of potential risks in the use of AI in insurance, such as insufficient traceability of algorithmic decisions or potential discrimination through opaque data models.
Automated damage assessment using AI finds little acceptance so far, with only 24% of respondents interested. However, AI can make complex insurance content understandable, and around 40% of respondents could imagine having insurance-related questions answered by an AI.
In summary, while specific trends in Germany are not detailed, the global insurance industry is embracing AI for efficiency, innovation, and growth, with cautious attention to data privacy and regulatory challenges. German insurers likely follow similar trajectories, leveraging AI for streamlined processes and personalized services. However, consumer advocates urge caution, highlighting potential risks associated with AI in insurance, such as insufficient traceability and potential discrimination.
The finance sector in Germany is warming up to AI assistance, particularly for insurance applications, as indicated by the surveys, with 47% eager to use AI for application filling and 39% interested in AI for contract evaluation and alternative suggestions.
AI technology is being integrated into various insurance operations, such as claims handling and underwriting, for improved accuracy and efficiency, while also aiming to create personalized customer experiences and transparent tariff comparisons.
