What Gen-AI is making possible that P&C underwriters can’t afford to miss

Streamlined processes, enhanced accuracy, and improved underwriting. But that’s not all Gen-AI can do.

If you’re looking for a bold and transformative vision for the future of property and casualty (P&C) insurance, we have just the whitepaper you may be looking for.

The challenges facing the industry are clear: the after effects of the global pandemic, geopolitical tensions, macroeconomic uncertainties and a recessionary outlook. However, among these hurdles lies an opportunity to rethink the fundamental purpose of insurance—shifting from insuring loss to ensuring protection.

Traditional underwriting is being pressured by “increased market risks, rising claims costs, disrupted supply chains and outdated processes," according to the latest whitepaper from Xceedance: ‘Evolution of underwriting using Generative AI.’ Download a copy today into your inbox.

When two cutting edge techs meet

Gen-AI is enabling insurers to significantly improve the predictability of climate insurance using parametric models and helping to extend these to meet demands such as agricultural risks. 

Resilience within the re/insurance industry is important, and to tackle new complex risks, such as climate change and cyber threats, insurers are need to innovate.  The paper states: "Leading insurers have demonstrated heightened activity... to improve predictability in climate insurance and enhance cyber risk modelling and fraud detection capabilities."

While partnerships within the insurtech ecosystem will be crucial to combat future fraud and cyber risk, the paper argues that Gen-AI will deliver “novel and creative outputs” that are accessible to users without technical expertise and that go beyond optimisation to fundamentally reshape processes. 

The paper warns that investors are beginning to adopt Gen-AI and implement proofs of concept, so “insurers must prioritise their needs and identify quick-win opportunities.”

Framing underwriting as having “significant long-term value creation potential,” the implementation of Gen-AI (perhaps via “staggered investments”) could both improve underwriting accuracy in the short term and transform the underwriting function in the future, the paper notes. 

“Gen-AI’s intriguing potential is propelling its transition from an optional consideration to a critical requirement”

A useful roadmap

Expertise in underwriting is heralded as the way forward, and the paper explains the game-changing potential of Gen-AI to "enhance RoI from modernisation efforts and accelerate business value realisation."

If you’d just like a handy roadmap for Gen-AI in P&C underwriting, this whitepaper is for you. 

It outlines three clear phases of Gen-AI adoption: "digital native," which focuses on streamlining processes such as data enrichment and document summarisation; "ecosystem enabler," which leverages automation to drive value across the underwriting chain; and finally, "AI native," which reimagines underwriting as a proactive, predictive capability that ensures protection.

As for risk assessments on the back end, Gen-AI can perform “automated impact assessment on the overall risk portfolio” while “analysing risk patterns for calculating fraud and indemnity probability,” the whitepaper states. 

Gen-AI will undoubtedly improve customer service efficiency, and its adoption could boost triage and segmentation capacity by up to 250%, enhancing stakeholder capacity and accelerating decision-making processes.

Underwriting cost transformation

Ever wondered how to ‘weaponise data across growth and efficiency objectives’? The paper suggests coupling this strategy with stringent fraud management to unlock a potential $700bn for the P&C industry - but only  if insurers can prioritise time-to-market, enhance workflow accuracies and accelerate their product launches.

The paper provides a practical blueprint enabling insurers to increase value “across the underwriting value chain through automated processes”, and stresses the need to fully understand the complexity of deployment and tailoring strategies to maximise impact.

Gen-AI requires careful alignment with business objectives, so insurers are urged to be diligent in selecting the right AI models by evaluating factors such as "vendor expertise”.

The final takeaway is crystal clear: "Gen-AI’s intriguing potential is propelling its transition from an optional consideration to a critical requirement."

"Using generative AI, underwriting organisations can deliver a faster and more streamlined experience for both customers and employees," the paper promises.

Download your copy today!

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