Fuzion proudly attended the recent InsureTech Connect (ITC) Conference in Las Vegas, Nevada, held from October 15 to 18. This event, renowned as the largest of its kind, brought together nearly 10,000 professionals from the insurance and technology sectors.

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Not surprisingly, artificial intelligence (“AI”) was a consistent theme across many of the conference session tracks and brought into greater focus the unique opportunities and challenges that AI will generate in the insurance industry. While most insurance carriers have indeed initiated AI pilot projects, many still fall into the self-described category of “AI Experimenter” which indicates they are still in the foundational stage of AI adoption and differentiation strategies.

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Among carriers, there was a significant focus on Generative AI to enhance customer experiences. Although AI help desk bots have not met expectations, there is a consensus that augmenting agents with real-time data can improve both service quality and cross-selling opportunities.

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Insurance Industry Challenges in Implementing AI

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There are two primary challenges that were highlighted during the conference, namely:

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     1. Regulatory Concerns: AI is a rapidly-changing technology with data and privacy concerns which makes drafting                       regulations particularly challenging. Specific areas such as AI-driven claims triage and fraud evaluation are still                       undefined areas.

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     2. Legacy Technology: Many insurance companies rely on legacy or mainframe systems that are not always compatible             with newer technologies. This incompatibility may pose a significant barrier to AI integration.

 

Building an Effective AI Strategy

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During 2024, Fuzion has focused on developing an approach to AI to capitalize on its myriad opportunities and to stay ahead of foreseeable challenging impacts caused by AI. These include:

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• employee education;

• establishing policies and procedures; and

• implementing new tools to identify potential areas of value.​

 

Consistent with our go-to-market strategy, we believe that AI will augment, not replace, the human touch. We will continue to innovate and integrate AI into our operations to better serve our clients and partners, driving their success via an effective combination of skilled insurance professionals armed with AI technology.