AI for Insurance Agents: A New Way of Making Decisions ft. Christopher Frankland

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TL;DR:

• Generative AI in insurance is bridging the gap between insurers and customers, enabling data-driven insights that personalize customer experiences.
• Automating claims processing and document management streamlines operations, allowing faster resolution times and reducing administrative burdens.
• Legacy systems pose challenges for insurance professionals; effective innovation integrates new technology without disrupting foundational processes.
• Agile methodologies and RPA help carriers improve efficiency by handling simpler tasks and creating smoother workflows.
• A human-centered approach to automation ensures that empathy remains central in complex customer interactions, striking a balance between technology and personal connection.

Before we dive into the key takeaways from this episode, be sure to catch the full episode here:

Meet Christopher - Global Head of Product and Innovation at Cover Desk

Christopher Frankland is a technology innovator focused on transforming the insurance industry through customer-centric solutions.

As Global Head of Product and Innovation at Cover Desk, he leads efforts to modernize insurance operations, leveraging generative AI and agile methodologies to streamline processes and enhance customer engagement.

With a background in tech consulting and extensive experience in InsurTech, Christopher brings deep industry insight and a passion for problem-solving.

His work at Cover Desk combines human empathy with advanced technology, creating solutions that balance automation with personal connection, ultimately redefining customer experience in insurance.

Generative AI Is Transforming InsurTech, Especially Customer Interactions

The way insurers interact with customers and manage processes is changing fast.

This is mainly due to the opportunities opened up by large language models, which leverage machine learning and natural language processing (NLP).

According to Christopher Frankland, generative AI enables companies to create customer-centric platforms and develop predictive analytics, allowing insurers to anticipate customer needs, deliver personalized service, and improve customer relationships.

Over the past year, the technology has taken center stage at InsurTech events, where it's evident that AI-powered solutions are moving from hype to practical application.

Frankland notes that generative AI is particularly valuable in making customer interactions more fluid and intuitive, providing tailored experiences based on insights from customer data and other sources — like internal knowledge banks.

However, he also stresses that generative AI should be applied strategically, focusing on areas that truly benefit from automation without sacrificing empathy.

By automating routine insurance processes like claims handling, insurers can offer faster, more efficient service while preserving human involvement in complex cases.

Both Christopher and Ankur agree that Generative AI supports a balanced approach to technology-driven efficiency and meaningful customer engagement.

Balancing Innovation With Legacy Systems in the Insurance Industry

Balancing innovation with legacy systems is a unique challenge in the insurance industry, where longstanding carriers often rely on decades-old infrastructure.

Christopher highlights that many insurers face the hurdle of managing technical debt tied to systems that may be 30 to 50 years old, making it difficult to quickly adopt cutting-edge technology.

These foundational systems, rooted in "green screen" technology and mainframes like AS/400, cannot be easily replaced, so carriers must innovate in a way that complements their existing infrastructure.

Tips on AI for Insurance Agents

Frankland emphasizes that, while insurers are often seen as slow to innovate, they are motivated to modernize but must work within constraints that limit rapid overhauls.

A practical approach involves integrating new technologies, such as APIs and cloud solutions, to extend system capabilities without disruptive change.

By adopting a gradual, hybrid model that blends legacy systems with modern tech, insurers can innovate at a sustainable pace, preserving stability while enhancing agility and customer service.

Human-Centric Automation: Striking a Balance is Vital

A human-centric approach to automation is essential in insurance, where complex customer needs often require a balance between efficiency and empathy.

“The insurance industry must balance customer empathy with technological advancement.” — Christopher Frankland

Frankland highlights that while automation can streamline routine tasks, like basic claims processing, the industry must carefully consider which processes to automate and which to leave to human agents.

“Low-level, routine tasks are ripe for automation, which can speed up claims processing.” — Ankur Patel

Automating too many interactions can risk losing the personal touch, especially in high-stress situations where customers need reassurance and guidance.

Christopher points out that simple tasks, such as answering standard inquiries, can be efficiently managed by chatbots. This allows an insurance agent to, for example, focus on handling more complex cases that benefit from human empathy.

He also stresses the importance of “picking and choosing” where to apply artificial intelligence, so that automated systems improve response times without compromising the quality of human interactions.

Taking a strategic approach to automation helps insurers ensure that technology enhances customer experiences rather than replacing the trusted, personal support that many customers rely on in difficult times.

Reducing Bottlenecks: Automating Claims Processing and Document Management

Claims processing and document management represent prime opportunities for automation in insurance, offering substantial benefits in efficiency and customer satisfaction.

Christopher explains that many aspects of the claims journey, such as document collection and initial claim reviews, are well-suited to automation.

By digitizing and streamlining these repetitive tasks, a typical insurance agency can provide faster, more responsive service without compromising accuracy.

For instance, automating the verification of submitted documents or alerting customers of missing paperwork can speed up the claims process significantly, preventing delays that can frustrate customers.

“Claims processing has areas where automation can enhance efficiency without impacting user experience.” — Ankur Patel

This level of automation not only lightens the administrative burden for claims adjusters but also improves the overall customer experience by ensuring quicker responses and more fluid interactions.

Frankland suggests starting with these “low-hanging fruit” areas, where routine document handling can be automated to free up human resources for more complex cases.

Such an approach allows insurers to experiment with the capabilities of AI tools while minimizing risks, building trust in automation’s potential before tackling more intricate processes.

Integrating Agile and RPA to Bridge Legacy Systems

Agile methodologies and robotic process automation (RPA) are becoming vital tools for insurers looking to enhance efficiency and adaptability.

Christopher notes that InsurTech companies have introduced an agile mindset to an industry historically dependent on slower, “waterfall” project management.

Agile practices allow insurers to iterate quickly, test new solutions, and adapt to changing needs without lengthy development cycles. This shift has encouraged carriers to embrace a more flexible approach, helping them address evolving customer expectations.

RPA, meanwhile, offers practical, immediate improvements by automating repetitive, time-consuming tasks, such as claims data entry across different platforms.

Frankland explains that RPA is especially valuable in connecting legacy systems without requiring APIs, effectively acting as a “glue” between disparate systems. However, Christopher also emphasizes the importance of governance and maintenance, as RPA processes can break if workflows or systems change.

Together, agile methods and RPA enable insurers to modernize operations incrementally, blending speed with stability while carefully managing technical debt.

While agile methods and RPA enable insurers to modernize incrementally, blending speed with stability, AI capabilities are essential for deeper transformation.

Unlike RPA, which is task-focused, AI brings intelligence to complex decision-making, predictive analysis, and customer personalization. Therefore, by combining AI with RPA, insurers can balance operational efficiency with a forward-looking strategy.

Want to learn more about AI in insurance? Check out this episode on insurance process automation to unlock efficiency while maintaining trust with Meredith Barnes Cook.