Insurers Urged to Focus on Data Quality Over Speed in the GenAI Revolution
In the rapidly evolving insurance sector, the integration of generative AI (GenAI) tools is becoming increasingly crucial as companies strive to meet rising customer expectations. However, a recent report by M-Files highlights that this rush to adopt new technologies may jeopardize accuracy, leading to potential pitfalls in customer service.
Decline in Customer Satisfaction in the Insurance Sector
According to the latest data from the Chartered Insurance Institute, customer satisfaction in the insurance industry has dipped to 84% in Q4 2024, down from 86% the previous year. This decline emphasizes the urgent need for insurance firms to enhance their service delivery.
The Role of Generative AI in Insurance
In response to decreasing satisfaction levels, many insurance companies are turning to GenAI tools to streamline operations. These technologies aim to increase efficiency in:
- Customer interactions
- Quoting processes
- Product delivery
However, as Yohan Lobo, Senior Industry Solutions Manager at M-Files, points out, hastily implementing GenAI without a robust data foundation can lead to inaccuracies. He emphasizes the importance of having clean, reliable internal data to support these AI models.
Challenges of Adopting GenAI Too Quickly
While GenAI can significantly reduce manual tasks—such as summarizing policy documents—it often produces unreliable outputs if the underlying data is flawed. This can adversely affect the overall user experience, leading to dissatisfaction among clients.
Recommendations for Insurance Firms
Instead of prioritizing speed in technology adoption, Lobo advises insurance firms to:
- Eliminate manual bottlenecks through automation.
- Establish a trustworthy data bank for AI models.
“Taking time to develop a reliable solution is the safest way to deliver optimized performance in the long run,” Lobo stated, reinforcing the importance of a measured approach.
The Importance of Trust in the Insurance Industry
Lobo concluded, “The insurance industry is built on trust and client advocacy; both suffer if clients don’t have a great experience with the firm, which ultimately impacts revenue and reputation.” This highlights the critical relationship between customer satisfaction and business success.
M-Files offers an AI-driven platform that assists firms in automating knowledge work and ensuring compliance while boosting productivity. For more insights on how technology is reshaping the insurance landscape, visit InsurTech Analyst.
