Artificial intelligence (AI) is one of the most disruptive technologies of our time, affecting every aspect of our lives and businesses. But how is it impacting the insurance industry, which has traditionally relied on human judgment, expertise, and trust?
To find out, we spoke to Artur Niemczewski, a nonexecutive director of Bridgehaven Insurance and Broker Insights Ltd and the AI Champion and former NED at the Chartered Insurance Institute (CII.) Artur's impressive career spans decades of executive roles in insurance and technology sectors. With a PhD in Nuclear Engineering and an MSc in Public Policy from the Massachusetts Institute of Technology (MIT), Artur brings a unique blend of technical and industry expertise. In his role at the CII Artur champions AI education and ethical use of AI among the UK insurance professionals.
In this interview, Artur shares his insights on how AI is reshaping the insurance industry and the essential skills and competencies leaders will need for the future.
What are some of the benefits and limitations of AI for the insurance industry?
AI acts as an amplifier for human intelligence; it doesn't create but quickly processes and analyzes vast amounts of data. “I call it a steam engine for your brain.” This can help with tasks such as pattern recognition, fraud detection, risk assessment, pricing, and claims management. However, AI also has its drawbacks, such as generating “hallucinations” or false patterns, which can be problematic in regulated fields like insurance. AI can't replace human judgment and creativity, especially in critical decision-making situations. It's best used as a tool to augment and automate routine tasks, rather than as a substitute for human expertise. “We refer to it as human in the loop.”
What are some of the skills that insurance professionals need to succeed in an AI-augmented environment?
Continued personal development is key to job security in an AI-augmented environment. Professionals should gain skills to manage AI tools, use the right tools in the most effective way, identify errors, and step in when necessary. Critical thinking remains an under-taught yet crucial skill. It can't be replaced by simple searches, and understanding AI's boundaries is imperative. Experience informs judgment. As AI simplifies access to information and interprets results for us, there's a risk of diminishing our analytic capabilities.
How does the insurance industry support the professional development of its professionals in the age of AI?
Many organizations within the insurance industry offer educational programs. At CII, we set the standards for insurance professionals at all levels, from entry-level to senior executives. Introductory courses in data analysis and AI are available to bridge the gap between insurance knowledge and technological proficiency. We also engage in debates regarding the ethics of AI, including interactions with chatbots like ChatGPT. At an affiliated organization, the Worshipful Company of Insurers (WCI), we also address the needs of insurance non-executive directors, who need to ask the right strategic questions amid a fear of missing out and confronting misinformation. Many misunderstand AI's function and limitations, and so additional efforts are made to increase public awareness and understanding of AI and its implications for the insurance industry and society at large.
What are some of the best practices and examples of integrating AI in the insurance industry?
The companies leading in effectively integrating AI focus on business objectives rather than the technology itself and measure outcomes accordingly. They use AI to enhance customer service, improve decision-making, streamline operations, improve efficiency, and reduce costs. They also ensure that their AI systems are transparent, explainable, and fair, and that they comply with the relevant regulations and ethical principles.
How do you see the future of the insurance industry evolving in the next decade?
I see the insurance industry as a dynamic and exciting field that offers intellectual stimulation and a collegial atmosphere. AI will continue to transform the industry, creating new opportunities and challenges for professionals. The talent landscape will shift toward smaller call centers, highlighting the continuing need for human interaction, particularly during crises. While AI might reduce the number of required personnel, those who remain will likely be more productive. AI won't autonomously generate and validate its models—human creativity and oversight are vital. Professionals utilizing AI could potentially supersede those not leveraging this technology. There's a chronic talent shortage in insurance; tech-savvy individuals often seek careers in companies like Google, while insurance experts may lack technological proficiency. Our institute aims to bridge this gap and attract more talent to the industry. At senior levels, insurance skills are irreplaceable, presenting talent challenges for the next decade and beyond.
