RDT Tech Poll – Insurers Embrace AI for Enhanced Efficiency but Warn That the Human Touch Remains Vital

The acceleration of artificial intelligence (AI) technologies is seen as central to unlocking efficiency and operational improvements in insurance. Yet, the industry is only just beginning to see the impact that AI and automation could have.

In RDT’s recent Tech Poll surveying insurer and MGA technology professionals, a measured confidence in the adoption of AI prevails. Insurance tech specialists highlighted its potential to improve insurance processing and platforms for the benefit of customers and brokers.

A majority of respondents (61%) reported that their firms are currently utilising generative AI and more than half (52%) of insurance tech professionals expressed confidence that the sector is adopting AI in a way that fully benefits customers and brokers.

AI is already making a notable difference in customer service. Using virtual assistants and chatbots to handle common queries offers customers quicker solutions. Chatbots drive instant customer interactions, answering questions and providing guidance about insurance products. This allows firms to focus on helping customers with more complex queries or those requiring more support.

Insurers identified the potential of AI to personalise services (81%), combat fraud (66%), and assist underwriting decisions (53%) as the most important ways in which AI is expected to help improve their firms in the future.

The claims process is also a focus for AI. AI is expected to lower processing costs, enhance the customer service experience, and reduce the turnaround time for claims from days or weeks to minutes.

Despite these advancements, the human factor remains vital. Claims handlers will still be essential for finalising complex claims decisions, and many customers want the human touch and empathy, making it crucial to integrate AI thoughtfully into the customer service framework.

Tech specialists agree that a measured approach is the ideal one. The majority (88%) still value human expertise and advocate for AI to enhance human decision-making rather than replace it entirely.

Joe O’Connor, Deputy CEO of RDT, stated:

“We are seeing promising strides in the adoption of AI within the insurance sector, but it’s essential to strike the right balance between technology and human expertise. AI can significantly enhance efficiency and customer service, yet the human touch remains irreplaceable for complex decision-making and empathetic customer interactions. Our industry must continue to innovate while keeping the customer at the heart of all advancements.”