Will AI Replace Insurance Agents?

It's unlikely that Artificial Intelligence (AI) will replace insurance agents any time soon. Selling insurance requires a human touch: building relationships, paying attention, being empathetic, and caring about feelings. These qualities are impossible to replicate with AI. Insurance agents can refer clients to independent brokers, work as independent brokers, or be employees of an insurance company.

Insurance automation is already changing the way we live and work. In less than ten years, insurance agency claims underwriting will be fully automated, and in that time, the automation of cognitive processes will be even more advanced. Automation is likely to replace the “Insurance Agent” with robots with a 92% probability. AI-powered underwriting systems help insurers convey a comprehensive risk profile in a way that is highly understandable to their customers.

Blockchain technology is also helping to increase the efficiency and safety of insurance agencies. When technology reaches a point where the work of an insurance agent could be threatened, both insurance companies and all independent insurance agents will be affected. This skill is vital when it comes to selling life and health insurance, which life insurance agents use well. An insurance agent is a professional whose job is to persuade consumers or organizations to buy various types of insurance.

For example, if a customer wants to get a new ID card or ask a question about an invoice, they will most likely receive a faster response from a chatbot than from a real agent. In the next three to five years, the country's life insurance industry is expected to grow by 14-15% annually. Reportedly, many travel agents have gone bankrupt (paywall), but those who stay are likely to be larger and more successful. An automated life insurance underwriting process uses personal health-related information to determine the right amount of coverage for a customer.

With so many insurance companies to choose from, companies want their customers to experience stellar service. While there's not much insurers can do to make technology drive price as the bottom line, they can and are using some tools to their advantage. As agents continue to interact with customers on the phone, in person and over the Internet, operators are experimenting with technology to increase direct customer interaction. The day may come when a particular technology will be more profitable for insurance companies than paying humans to do the same work.

In the heyday of the neighborhood brick-and-mortar insurance store, agents were the face and brand of an insurance company. In January, a Japanese insurance company made headlines around the world after laying off more than 30 employees from claims and replacing them with an AI system. While this fact is discouraging and acquisition may seem inevitable, there are still some reasons why insurance agents won't be obsolete soon.

Angelia Brazille
Angelia Brazille

Unapologetic tv guru. Hardcore travel maven. Total travel fanatic. Typical twitter geek. Hardcore explorer.

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