ITC DIA Europe

What does ChatGPT make of the insurance industry’s technology landscape for 2023?

Written by Merlin Beyts - ITC DIA Europe on Jan 18, 2023

Surely you’ve all heard of ChatGPT by now. If you haven’t, check it out – it’s incredible! For those of you who are yet to sample this wonder of modern technology, here’s an explanation. It is essentially an online tool that can answer most questions on request and responds as if it were in conversation with you (well, as much as is possible for a robot.) It can be used to write song lyrics, draft emails, do research on the internet and just about most things that are possible with the written word. So we thought of a fun experiment: to see what it makes of the insurance industry’s tech trends for 2023. Let’s take a look at what the AI had to say.

What are the most important insurance technology trends for 2023?

“It’s difficult to predict with certainty which specific insurance technology trends will be most important in 2023 as technology and the insurance industry are rapidly evolving. But based on current trends and developments, some areas that are likely to continue gaining importance include:

  • Digitization and automation of underwriting processes
  • Use of telematics and IoT devices for risk assessment
  • Advancements in artificial intelligence and machine learning for claims processing and fraud detection
  • The adoption of blockchain for secure data sharing and smart contract
  • The utilization of virtual and augmented reality for customer engagement and underwriting assessment
  • Increased use of data analytics to improve customer segmentation, risk modeling, and pricing”

Which lines of insurance will be most affected by technology in 2023?

“In terms of lines of insurance, personal lines such as auto and home insurance are likely to be most affected by technology as they are highly competitive and commoditized. Commercial lines may also see significant changes, particularly in areas such as cyber insurance, where technology is rapidly changing the risk landscape.”

What part of the insurance value chain will change the most due to technology in 2023?

“In terms of the insurance value chain, distribution and customer engagement are likely to be the areas most affected by technology in 2023. Advancements in digital channels, such as mobile apps and chatbots, as well as increased adoption of virtual and augmented reality, will likely change the way insurance is marketed and sold.”

How will the recession affect insurers’ ability to invest in technology in 2023?

“As for how the recession may affect insurance companies’ ability to invest in technology in 2023, it is likely that it will have an impact. Economic downturns can lead to reduced investment and a cautious approach to new technologies, but those companies who are better prepared and adaptable with technology will have a competitive advantage over others.”

Which continent will benefit most from technological improvements in the insurance industry in 2023?

“It is likely that all continents will see advancements in technology within the insurance industry in 2023. However, it’s likely that developed economies such as North America, Europe and Asia will benefit the most. These regions have a higher adoption rate of new technologies and well-developed insurance markets.”

Overall, I was pretty impressed. Despite the platform’s ”shameless self-promotion” in response to the third question, it seemed mostly accurate. Yes, the last two answers are perhaps a little obvious but let’s not expect too much of the robot just yet. To its credit, it has effectively gotten to the zeitgeist of the industry and has recognised important issues currently facing insurance professionals. What’s worth bearing in mind is the fact that it has taken this information from scraping the internet. This essentially meaning that these are trends predicted by the loudest voices in the industry. It’s important to stay critical of new technological innovations as they arise – imagine if you were to scrape social media for the most common opinions expressed in comments sections.  

No doubt ChatGPT (or at least this incarnation of it) will in the future be regarded in the same way as 8-track players or those pneumatic tubes that people used before e-mail. But, for now, we remain wonderstruck – perhaps enough to find some use cases for insurers at our conference in Barcelona! The insurance industry is advancing like never before and innovations like ChatGPT are just an example of how quickly things can change. It’s up to you to take advantage of it.

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