Is Artificial Intelligence the Future of Insurance?
Artificial intelligence. Depending on whom you ask, it signifies either the fall of humans as Earth’s dominant species or a utopia in which people devote their time to meaningful pursuits, letting computers handle the mundane tasks of everyday life.
If you are an independent agent who read this article in Forbes, you may belong to that first group.
The truth, like so many things in life, falls somewhere in between those two extremes. Yes, tremendous advances in artificial intelligence, commonly called AI, already replaced many work components previously performed by people. However, certain tasks belong strictly to the realm of humans.
The goal of any independent insurance agency should be discovering how to leverage the advantages of AI with the strengths and unique capabilities of its licensed insurance agents.
Putting Artificial Intelligence to Work for You
Ever since Roman scholar Ulpianis developed the first actuarial table around 222 A.D., insurance agents have relied on data to determine risk.
Today, the complexity of data continues to grow and analyzing it often presents a challenge for agents. This is especially true when you add in the instant results most people now expect. Banks and other financial entities promise customers they’ll receive a credit decision in 60 seconds. Your customers typically expect similar response times.
AI offers a solution to the data analysis dilemma. You give your customers what they want – speedy, accurate data-driven decisions – while creating more time to focus on the aspects of your job that a computer cannot duplicate.
Move Your Focus to Your Strengths
People may feel comfortable relying on computers for numbers, but when it comes to asking questions and actually purchasing a policy, the human touch is key.
Think back to the days before you became a licensed Texas insurance agent. What did you want and need from an insurance agent? What bugged you?
If you’re like most people, you wanted information. You did not want to feel like the agent was trying to upsell you with scare tactics. Instead, you liked plain English explanations of what a policy covered and why it would benefit you.
Become the agent you wished you’d had as a customer.
The average person doesn’t have a deep, meaningful grasp of the industry. The role you should embrace in the AI era is that of educator and guide. This serves two functions:
- Fulfilling your customers’ desire for a deeper understanding of how your products meet their needs.
- Increasing upsell and cross-sell opportunities, driving both revenue and brand loyalty.
This is how you build and develop relationships with your customers. As their insurance needs change – families grow, houses and cars get bigger or more expensive – they rely on you to ensure their coverage is adequate.
Over time, through your education and guidance, not to mention good, old-fashioned customer care, you prove your value as their insurance provider. As their needs evolve, they rely on you to fulfill them. No AI system can match that.
Artificial intelligence is a real presence in the industry, but you don’t have to view it as a threat to your independent insurance agency. Take advantage of it, and focus on the human element. You and your customers get the best of both worlds.
Even though some jobs are becoming more automated, selling insurance as an independent agent is here to stay. Contact Eagle Insured Advisors to find out more about becoming a Licensed Client Advisor.
Comments are closed