Information Technology and the Insurance Industry

I am currently employed in the insurance industry, where I have worked for about seven years. My job involves processing various inquiries submitted by insurance agents or directly by our insureds, including requests for policy documents, to update coverage, and so on. All my work is done on a computer. We receive our requests through request management software that is accessed via a web browser, we communicate with coworkers via email and chat, and also use Microsoft Office programs (such as Excel and Word) for other reasons as needed.

Because all our work is processed electronically, computer literacy is paramount to job performance. Being able to multi-task between multiple programs is important, and high typing proficiency is directly related to efficiency. There are very few positions within my company that do not use a computer in one form or another. As another example, those in the call center use VoIP to connect with agents & insureds and use the same management software we use to access policy information and notate our internal files. Needless to say, most insurance companies’ books of business are far too large to effectively manage in a non-electronic manner; with that in mind, it would be safe to assume that most positions in insurance essentially require a high level of competence in using technology.

As technology advances, those in the insurance industry will continue to find ways to innovate technology as we use it. Commonplace in my position is the use of macros, or small programs that automate banal, lengthy processes. With artificial intelligence (AI) on the rise, directors within my department have discussed how AI could be utilized for certain processes. As AI becomes more sophisticated and accessible, our current macros could be replaced by more intuitive & easier-to-use programs that use AI. This would free up the time needed to actually write the macros, and would also save time for the processors who use these macros. One study has observed that AI could allow the insurance industry to “fundamentally reengineer core processes” to be more predictive, which would increase worker productivity and lead to “higher-quality touchpoints with customers”. Over the next decade, I would predict that many of the processes for which we utilize macros could easily be supplemented by AI technology. If done properly, I believe that this could lead to easier work for our employees, which should lead to higher productivity and higher job satisfaction.

However, with AI becoming more sophisticated, many have expressed worthwhile concerns that AI could replace certain jobs altogether. At least with regards to the insurance industry, I have some cause for optimism on this subject. In my department, most of the positions face our agents or our customers. When we fulfill requests, we are typically communicating directly with one of them via email or phone. I believe there is something to be said about the "human element" in our position - for example, if we email a customer or agent advising we have done something and they have further questions or concerns, they will undoubtedly feel more comfortable with a real employee responding to them, and have a more positive perception of our company. Additionally, I would say that at this time that I am not totally confident in AI's ability to hear or read a request and process it correctly in our systems. It would be hard for me to believe that AI has the capacity to completely replace people in the specific work that I do. That being said, AI-assisted programs might still greatly reduce our overall work levels; whether or not that work will be reduced to a degree that actually reduces the need for the number of workers we presently have remains to be seen.