Global consultancy Bain & Company forecasts a substantial financial opportunity for insurance organizations through the adoption of generative AI (GenAI), potentially boosting revenues by up to 20% and reducing costs by as much as 15%. Bhavi Mehta, the global lead of AI in Financial Services at Bain, emphasizes three key avenues through which insurers can benefit from GenAI: productivity enhancement, sales improvement via effective agents and digital advice, and enhanced risk identification and targeting for customers, agents, and the enterprise.
Bain's report outlines four transformative ways in which GenAI is reshaping insurance distribution: enhancing agent productivity, extending customer self-service and sales support through virtual assistants, enabling hyper-personalization at scale, and providing deeper business insights for informed decisions. Despite the promising prospects, Bain underscores the emerging risks associated with GenAI, including hallucination, data provenance, misinformation, toxicity, and intellectual property ownership. Sean O’Neill, leader of Bain’s global Insurance practice, stresses the importance of a responsible AI strategy to manage these risks effectively while leveraging GenAI's capabilities to redefine business operations. Insurers are urged to align their business units, determine internal development versus vendor procurement, ensure cross-functional delivery teams, and design adaptable operating models to embrace the evolving GenAI landscape effectively.
