Did you know that, accordingly, 35% of businesses use and rely on AI in their day-to-day operations? This is crazy because 20 years ago, AI did not exist. When I was a kid in school (Mason G), I did not even imagine that there would be a tool that would make our lives easier and more efficient. I am sure if AI was around over 100 years ago, do you think how much easier it would be for our parents and grandparents? They would be able to communicate faster and work faster.
In this article, we will examine the current benefits, implications, and risks associated with AI and how this tool can even replace insurance jobs one day.
Jeffery, a broker in a small town in Bright Grove, Alberta, has been working in the Insurance industry as a broker for over 30+ years. He enjoys this job because he can interact with the client regularly and enjoys listening to the customers’ needs and finding the right insurance based on those needs. He gets great satisfaction every day.
When asked about AI, Jeffery said there is no way AI will replace us, the “human acceptance” of the insurance jobs industry. Jeffery explained, I guess I am just an old school kind of guy and can see it. Jeffery would not be opposed to AI in regard of making his job and other brokers’ jobs easy, he just does not want AI to replace the broker and take the job away from the human.
Karen, a broker in a big city in Montrell, Quebec, has been a broker for 5+ years and enjoys her job but sometimes gets busy with clients and has trouble dealing with all the clutter. Karen said she enjoys working with the customer to find the best insurance package, but worries she will be burnt out in the next 5 years as her job is tiring and has lots of work.
She would be open to AI as she does not want AI to replace her or the human, but if they can respond to emails automatically, that is something that would make her job a lot easier and give her more time to meet with the client and have those in one meeting to create the connection. At the end of the day, she wants to see AI replace certain tasks that take up too much time of the broker’s day but is opposed to replacing the broker position altogether.
Amir is a fresh graduate out of school with big dreams who wants to become a broker because he enjoys protecting families from the unexpected and can sleep better at night when he knows his clients are protected from the unexpected.
When asked about AI, he simply said Yes, I love AI. It makes my life so much easier, and I see it making the broker’s life easier as well. Amir loves using technology because he says it saves time, money, and energy.
Humans only have 24 hours in a day and we can’t work for 24 hours. What happens if AI can work for us during the night and complete tasks such as sending emails, cold calling, and finding prospective clients, and setting out our schedule each day automatically? Do you know how much time that would save the broker? so much time that we would be able to spend more time with the client and create a personal connection.
When taking a look at these stories, we can see that everyone has their own opinion on AI and how much good and bad it will do to the insurance jobs industry. We all must understand the implications and importance of AI below, hearing from the biggest names in the insurance jobs industry.
Desjardins Insurance Leveraged AI in the enterprise
Valerie Lavoie, President and Chief Operating Officer at Desjardins General, sits down with Insurance News in April of 2022 to discuss AI and what impact it could have on insurance jobs.
The insurance industry has undergone significant transformation in recent years, with digital advancements reshaping customer expectations. The COVID-19 pandemic further emphasized the need for a seamless digital experience, prompting insurers to adopt a more technology-driven approach.
Valerie Lavoie, President and COO of Desjardins General Insurance Group, believes that staying ahead in this evolving landscape requires innovation, adaptability, and a commitment to customer-centric values.
Intelligence Impact on Insurance Jobs
Looking ahead, artificial intelligence (AI) is set to play a significant role in shaping the insurance industry. Desjardins is already leveraging AI to enhance claims processing and improve its distribution channels.
Lavoie views AI as a key driver of the industry’s ongoing digital evolution, helping insurers create a more seamless and efficient experience for customers.
As consumer expectations continue to evolve, Desjardins remains committed to delivering innovative, client-focused insurance solutions. By integrating cutting-edge technology with a strong values-based approach, the company is paving the way for a more accessible and responsive insurance jobs’ landscape.
TD Bank Uses AI For Mortgage and Insurance Approvals
Revolutionizing Customer Experience with Artificial Intelligence
TD Bank Group (TD) is making strides in digital innovation by launching two AI-powered solutions aimed at streamlining mortgage pre-approvals and term life insurance applications. These advancements are designed to enhance the overall customer experience by significantly reducing wait times and simplifying complex processes.
Faster Mortgage Pre-Approvals with AI
Since August 2023, TD has been utilizing an AI model to accelerate mortgage and home equity line of credit (HELOC) pre-approvals. Developed by Layer 6, TD’s in-house AI research center, this technology can approve certain applications in mere seconds, allowing mortgage underwriters to focus on more intricate cases.
Buying a home can be a daunting process, especially in an unpredictable interest rate environment. Recognizing this, TD introduced this AI-driven approach to make homeownership more accessible. Thousands of customers have already benefited from this streamlined process, experiencing reduced waiting times for approvals.
Optimizing Term Life Insurance Applications
TD Insurance took a similar AI-driven approach in March 2023 by implementing a machine learning model to expedite the review and approval of term life insurance applications. As the demand for life insurance continues to grow, this AI solution ensures that eligible applications are processed efficiently, providing customers with quicker responses.
By leveraging machine learning, TD has been able to transform the life insurance application process, enhancing customer satisfaction and ensuring timely decisions.
A Commitment to AI Innovation
These AI advancements align with TD’s long-term strategy of integrating cutting-edge technology to improve its services. Since acquiring Layer 6 in 2018, TD has expanded its AI research efforts, implementing nearly 50 AI-driven solutions and filing over 450 AI-related patents. Layer 6 has also received industry recognition for its contributions to artificial intelligence, including winning the ACM RecSys Challenge.
According to TD’s Head of AI and Analytics, these new solutions reinforce the bank’s commitment to leveraging AI to enhance customer experiences. By continuously investing in advanced technology, TD is setting a new standard in digital banking and insurance services, ensuring that customers receive faster, more efficient service.
Manulife Expands AI with 75% Workforce Adoption
As part of its ongoing digital transformation, Manulife has reached a major milestone by granting its entire global workforce access to its proprietary generative AI assistant, ChatMFC.
The company reports that more than 75% of employees actively engage with GenAI through learning programs, hands-on experiences, and AI-powered tools. This development highlights Manulife’s decade-long dedication to integrating AI into its operations, fostering efficiency and innovation at every level.
Driving Digital Transformation Across the Organization
By making AI accessible to all employees, Manulife enables its workforce to streamline tasks, automate processes, and enhance decision-making. AI is not simply an add-on; it is a core component of the company’s operations, influencing teams, business units, and locations worldwide.
Scaling AI for Growth and Efficiency
Manulife’s AI investment plays a crucial role in its broader digital strategy. The company has built a cloud-based AI and data platform, with over 35 AI-driven use cases currently deployed across Canada, the U.S., and Asia. An additional 70 use cases are slated for rollout by the end of 2025.
Some of the key AI-driven innovations include:
- ChatMFC: An AI assistant designed to automate routine tasks, allowing employees to focus on strategic priorities.
- AI Learning Programs: A skills-building initiative helping employees at all levels harness AI effectively.
- Expert AI Team: Nearly 200 data scientists and machine learning engineers are embedded across the organization to scale AI solutions.
Karen Leggett, Global Chief Marketing Officer at Manulife, emphasized that AI is transforming customer relationships, enhancing advisor interactions, and creating new revenue opportunities. “AI is driving efficiency, fueling growth, and strengthening our bottom line globally,” she stated.
A Commitment to Responsible AI Adoption
As Manulife continues expanding its AI capabilities, it remains committed to ethical AI usage. The company follows its Responsible AI Principles, ensuring transparency, ethical considerations, and sustainability in all AI-driven advancements.
AI has also revolutionized customer service and business operations. Notable developments include:
- AI-powered translation tools, providing real-time translations in nine languages to enhance global communication.
- Sales Enablement Tools, offering personalized insights to advisors and expanding across international markets.
- AI-driven customer support, managing over 110 million calls annually to improve service accuracy and responsiveness.
Looking Ahead: The Future of AI at Manulife
Manulife’s AI roadmap for 2025 aims to deepen AI-driven insights, enhance customer and advisor personalization, and scale AI-powered solutions. With AI at the heart of its strategy, the company expects a threefold return on digital investments over five years, having already realized $600 million in benefits in 2024.
Will AI Replace Insurance Jobs?
Let’s take a look. According to the Canadian Underwriter, Artificial intelligence (AI) is poised to revolutionize the property and casualty (P&C) insurance sector, but perhaps not in the ways most people assume. While AI won’t be replacing insurance jobs in the industry, it will significantly enhance efficiency, according to Sinead Bovell, futurist and founder of WAYE, who spoke at the RIMS Canada Conference in Ottawa.
Enhancing Risk Modelling and Decision-Making
Bovell emphasized that AI’s primary role in the insurance industry is to refine risk assessment and simplify administrative tasks. The technology can analyze vast amounts of data, far beyond what traditional statistical models can handle, to detect patterns and insights that might otherwise go unnoticed.
For example, conventional risk models may process thousands of data points, but AI has the capability to assess hundreds of thousands, leading to more accurate risk predictions for clients and policyholders.
However, despite its analytical power, AI lacks the ability to make subjective decisions. Human judgment remains essential in interpreting AI-generated data and determining the best course of action.
By combining AI’s predictive analytics with human expertise, insurers can create well-balanced risk assessments for policies, clients, and business strategies.
For instance, if a homeowner leaves for vacation while residing in an area experiencing increased burglaries, AI could predict the likelihood of a break-in and suggest an appropriate premium adjustment. A broker could then use this insight to proactively advise the homeowner on additional security measures to mitigate risk.
Streamlining Administrative Processes
Beyond risk assessment, AI can also optimize day-to-day operations within insurance firms. By automating routine and time-consuming tasks, employees can focus on higher-value work. Companies can train AI systems using proprietary data, allowing them to generate training materials for new hires and expedite the onboarding process.
Another practical application of AI is note-taking. Digital AI assistants can accompany employees in meetings, capturing key insights and summarizing discussions, making it easier to retain and act on important information. This capability is especially valuable for junior employees, who may benefit from structured data and comprehensive notes.
AI can also assist with drafting emails, helping employees articulate messages more effectively. For example, before sending a potentially contentious email, AI might suggest a more diplomatic tone, improving workplace communication and professionalism.
Breaking Language Barriers
One of AI’s more transformative benefits is real-time language translation, which can facilitate collaboration across international teams. Companies looking to diversify their workforce will find this technology invaluable, as language differences become irrelevant in day-to-day operations. AI-powered translation ensures seamless communication, fostering strong professional relationships across global markets.
The Future of AI in Insurance
As AI continues to evolve, its impact on the P&C insurance industry will become even more profound. While it won’t replace human expertise, it will serve as an invaluable tool for enhancing decision-making, automating tasks, and improving efficiency.
By embracing AI-driven solutions, insurance companies can better assess risk, provide superior service to clients, and create a more streamlined workplace for employees.
Finally, the key takeaways from this blog, if you are a broker reading this, are that your insurance jobs won’t be taken away, but your responsibilities might change. As a consumer, the human interaction will never disappear. As an investor, AI will make the insurance industry more profitable, productive, and more confident. AI will certainly be in jobs, but to what extent, we must wait and see.
References:
Canadian Underwriter. (2024, March 7). AI won’t take your insurance jobs—Here’s what it’ll do instead.
Qorus. (2024, February 27). Manulife expands GenAI capabilities to entire workforce, achieves 75% engagement.
Qorus. (2023, October 19). TD Bank enhances customer experience with AI-driven mortgage and insurance approvals.
Insurance Business Canada. (2023, May 9). Desjardins’ Valérie Lavoie sees an omnichannel future for insurance.
Statista. (n.d.). Artificial intelligence (AI) worldwide.
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