How My View of ChatGPT Changed in 90 Days… And What It Means For Insurance  April 12th 2023

How My View of ChatGPT Changed in 90 Days… And What It Means For Insurance

When I was asked in late 2022 and early 2023 about the implications of generative AI for insurance, my reply was always two-fold.

First, I advised that it is absolutely a technology space to monitor closely, given the rapid advancement, broad application, and unlimited potential. But secondly, I believed that the near-term use cases for P&C insurance were limited to more horizontal spaces and not so much to insurance-specific applications. There is no question that even now there is value in automating and enhancing interactions.

ChatGPT and similar tools are, at their root, designed for conversational AI – driving informed and automated chatbot-oriented interactions. Many types of communications can benefit from this technology – agency help desks, policyholder inquiries, claims status, internal conversations, and many more. In addition, anywhere in the insurance enterprise where there is a need to summarize information, create digital material, or extract data are now possibilities for AI to automate. In fact, this is more than a possibility – insurers are already deploying it across many use cases.

Mark Breading, Partner, Strategy Meets Action, a ReSource Pro company

Handling electric and semi-autonomous vehicle claims

Electric vehicles are more common than ever on our roads and as the drive for net zero carbon emission accelerates, the numbers will only continue to rise. They are forecast to comprise half of all new car sales worldwide by 2035, according to Goldman Sachs, with sales soaring to 73 million by 2040, up from around 2 million in 2020.

All good news for the planet and the fight against climate change, but the rise in electric vehicles with their semi-autonomous and connected software features creates new claims risks for the property and casualty insurance sector.

Working to resolve your claims more quickly and efficiently

AIG Global Chief Claims Officer Anthony Vidovich is helping clients and brokers get what they need when it matters most.

As AIG’s Global Chief Claims Officer, Anthony Vidovich believes the insurance industry has a social mission – which is to provide people and businesses with the confidence they need to take risks and therefore help enable progress.

This means insurers work diligently to support those making big business decisions, whether that be investing in the development of new products or services or doing business around the world.

“Businesses won’t take risks if they believe they could lose their capital because their investments aren’t protected,” says Anthony, who joined AIG in 2018, after a career as an attorney and before that a high school teacher in his hometown of Riverside, NJ. “The insurance industry plays a critical role in our society and economies because it helps companies both manage risks and transfer them off their balance sheet.”

Anthony sees the big picture: our most important job is to work with our clients to resolve their claims more quickly and efficiently and reach the right outcome.

US severe weather insured losses could develop to Q1 record $9.5bn: BMS

Severe and convective weather losses in the United States for the first-quarter of 2023 could develop to become the largest insurance industry loss for Q1 on record, according to a forecast from broker BMS.

According to BMS Senior Meteorologist Andrew Siffert, using data from industry sources and the firm’s reinsurance broker BMS Re, US severe weather is expected to drive an insurance industry loss of between $7 billion and $9.5 billion, once loss events are fully developed.

Siffert explained in an article, “There is no doubt that the first quarter of the U.S. insurance industry will be a costly one. According to industry claims data and estimates by BMS Re, the first quarter severe weather insured losses should come in at a range of $7B to $9.5B of insured severe thunderstorm storm losses from hail, tornado, and thunderstorm wind gusts.

“Losses are still developing, but the initial estimates provide a large aggregate loss that has occurred over 12 severe weather events since January 1st. The main loss driver is expected to be three $1 billion-plus events in March, including the Rolling Fork, MS, and Little Rock, AR, tornado weather systems that impacted a much larger area than these specific tornado tracks.”

Potential insurance implications of a four-day workweek

We’ve been hearing a lot more these days about the idea of the four-day workweek. For example, from January to June 2022, Scotland conducted a trial experiment running a 100-80-100 model. The trial “succeeded,” according to Scottish authorities, and several businesses elected to continue using the model.

In the United States, the Thirty-Two Hour Workweek Act was reintroduced by Rep. Mark Takano

Join our LinkedIn group, ALM’s Small Business Adviser, a space where small business owners can gather to network, have discussions and keep up with the trends and issues affecting their industries or visit our ALM Small Business Adviser group on Facebook. Join our LinkedIn group, ALM’s Small Business Adviser, a space where small business owners can gather to network, have discussions and keep up with the trends and issues affecting their industries or visit our ALM Small Business Adviser group on Facebook. in the United States House of Representatives in January 2023, after not passing in 2021. The bill proposes a reduction in the standard workweek to 32 hours, or four eight-hour workdays, with no reduction in pay or benefits for employees.

According to Digital.com, 22% of business owners surveyed in 2022 said they would strongly consider changing to a four-day workweek, and 13% surveyed said they are at least somewhat considering the move

5 of the Biggest Distractions on the Road

As the 2023 road trip season approaches, people are getting ready to hit the road and take a vacation. If you are one of the millions of travelers packing up to head out, be careful. According to the National Highway Traffic Safety Administration (NHTSA), distracted driving accidents claim over 3,000 lives a year.

According to an Erie Insurance survey, 56% of respondents said they plan on traveling more than 100 miles from home. The vast majority (80%) said they will travel by car, SUV or truck.

When asked what distracts them the most while driving, here's a list of the top five distractions:

Louisiana Gov. Edwards opens final session with insurance on everyone’s agenda

Gov. John Bel Edwards opened this year’s regular legislative session—his last as governor—with calls for addressing what many lawmakers and business advocates call a crisis in the state’s property insurance market.

Edwards says he is open to upgrading the state’s building code, will support funding grants to help homeowners fortify their roofs while ensuring they pay lower premiums for doing so, and wants to make the claims process easier and more transparent.

“I’m ready and willing to work with anyone to address the availability and price of insurance,” he said, adding that the solution is “not to make it easier for insurers to wear our people down” rather than making them whole.

Rep. Mike Huval, who chairs his chamber’s insurance committee, says he plans to request $20 million for roof-fortification grants of up to $10,000. Fortified roofs can reduce the cost of storm damage by 70%, he says.

Commercial P&C is at an “inflection point” – how can brokers and carriers step up?

Commercial property and casualty (P&C) insurance is at a critical point as the industry faces mounting economic pressures, including inflation, capital constraints, geopolitical challenges, and climate change-driven catastrophes.

According to McKinsey’s 2023 global insurance report, commercial carriers risk losing their relevance if they don’t fulfill the demand for resilience and plug protection gaps.

But Shannon Varney (pictured), one of the report’s authors and a partner at McKinsey, said that while carriers are being challenged, it’s also a time for brokers and MGAs to step in.

“This moment is a big inflection point for the commercial insurance industry,” Varney told Insurance Business.

“We see this as a critical time to provide real solutions for their insureds as the nature of risk is changing and new sources of risk are emerging that weren’t as acute or as severe as previously.