Successful AI in Insurance Relies on Insight Over Efficiency, Says AXA CEO
Lucy Pilko, CEO of AXA XL Americas, recently shared her perspective on how artificial intelligence is reshaping the insurance industry, emphasizing that true value comes from insight rather than just efficiency gains.
AI Adoption in Insurance: Beyond Automation
Insurance has always been a data-driven industry, with AI playing a role in pricing models for years. What’s new, Pilko notes, is the shift from process automation to generating actionable insights. Instead of focusing solely on speeding up tasks, the goal is to underwrite risks previously seen as uninsurable and to better align risks with a company’s financial strategy.
AI also enables insurers to support clients in risk prevention, moving beyond reactive measures to proactive management.
Collaborating with Technology Providers
Pilko stresses the importance of partnerships between insurers and tech firms. In the past, such collaborations were limited, especially in areas like cyber insurance where insurers held claims data, and tech companies understood threat landscapes. Now, with risk growing faster than ever, sharing data and knowledge is essential.
Building open forums and communities where data is shared openly can accelerate risk mitigation efforts and help everyone move forward together.
Timing and Progress on AI Goals
Working closely with large language model providers and cloud companies is a vital part of AXA's strategy. Understanding their technology and risk profiles helps AXA gain confidence in insuring these tech players and their customers. Pilko also envisions creating spaces to encourage technology adoption, such as embedded insurance solutions.
Enhancing the Role of Risk Professionals
AI is transforming insurance professionals into more effective advisors. For example, risk engineers who once spent significant time traveling to client sites can now access a broader view of client properties through AI-powered tools.
This expanded perspective allows them to provide deeper counsel and manage risks more effectively, making each professional’s time more impactful. With fewer people entering the workforce, these tools are critical to boosting individual productivity and economic contribution.
AI’s Role in Strategic Thinking
By automating routine, non-thinking tasks, AI gives professionals the bandwidth to focus on strategic decision-making. Experienced employees can leverage AI to process more signals and make better-informed decisions.
However, for new graduates entering insurance, the challenge is learning how to interpret AI-generated insights effectively. While younger workers may be more tech-savvy, they often lack the experience to apply those insights confidently.
Training and support are crucial to help new hires climb the learning curve faster and create a positive experience in roles such as call center representatives, where mastering AI-assisted tools can take time but ultimately reduces frustration and turnover.
Final Thoughts
AI’s true potential in insurance lies in its ability to enhance human insight and decision-making, not just in automating tasks. The industry’s next step is to foster collaboration, develop skills, and create environments where AI tools amplify the expertise of insurance professionals.
For those interested in expanding their AI skills tailored to insurance and risk management, exploring practical courses can provide valuable knowledge. Resources like Complete AI Training’s job-specific courses offer focused learning paths to help professionals stay ahead in this evolving field.
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