"How My View of ChatGPT Changed" - Mark Breading, SMA  May 10th 2023

How My View of ChatGPT Changed

The tone of articles about ChatGPT has rapidly shifted from "amazing but not always accurate or high-quality" to "this is significant progress."

KEY TAKEAWAYS:

• The discussion has moved to how much analytical work and task automation are possible – and if it is feasible beyond simple repetitive tasks.
• Concerns have heightened about AI’s potential to replace humans and eliminate jobs.
• If it becomes impossible to tell if a person has created an image, email, letter or video, then the potential for fraud skyrockets, and determining liability in claims becomes more difficult.

Mark Breading, Partner, SMA

6 Words to Focus Your AI Innovation Strategy

Is it time for insurers to go big on ChatGPT? The short answer is no. The right approach is: Think Big, Start Small and Learn Fast.

KEY TAKEAWAYS: -In the midst of all the enthusiasm, it's right to imagine your full range of strategic innovation options in the context of your company’s particular markets, strategy and key business drivers. - But don't fall in love with the one or two you think are the best. Instead, break them down into smaller pieces and run those opportunities through a rigorous screening and experimental process

- Test with inexpensive, rapid prototypes (not pilots) and be extremely disciplined about which should be dropped, which merit continued exploration and which should move into the pilot phase.

Chunka Mui , best-selling author

Exclusive: Bessemer Venture Partners is committing $1 billion to invest in A.I. startups

“The number one thing that was on every partner's mind in each of their respective categories...from health care to cyber to frontier tech, was how A.I. is impacting their areas,” partner Talia Goldberg told me yesterday. It was an unusual moment of unanimity within the VC firm, she says:

“Very rarely is it…so clear and so obvious across our firm that this is so hugely important,” she says. It “became almost a no-brainer decision for us internally.”

“A.I. is here, it is massive,” Goldberg says. She notes that the speed at which A.I. is and will affect virtually every sector the firm is investing in is exciting, and also cited things like model performance improvements and falling costs as reasons for Bessemer’s timing

Executive Viewpoint: Realizing the Benefits of Predictive Models, AI for Cat Claims

Executive Summary Nearly three-quarters of Westfield's storm claims are now processed via a desktop adjusting model, reports Head of Natural Catastrophe Claims Jeff Hastings. Here, Hastings reviews the carrier's use of virtual estimating tools, digital claims processing, predictive models, catastrophe models and AI to deliver needed resources to respond to customers impacted by storm events. The insurance industry is experiencing rapid technological advancements, regulatory changes and evolving customer expectations. At the same time, increased claims litigation and insurance fraud continue to require insurers to examine claims more carefully, which can increase processing times and lower customer satisfaction.

AI could replace equivalent of 300 million jobs

Artificial intelligence (AI) could replace the equivalent of 300 million full-time jobs, a report by investment bank Goldman Sachs says. It could replace a quarter of work tasks in the US and Europe but may also mean new jobs and a productivity boom. And it could eventually increase the total annual value of goods and services produced globally by 7%. Generative AI, able to create content indistinguishable from human work, is "a major advancement", the report says.

How AI Is Redefining The Future Of Insurance

When Hurricane Ian made landfall in Florida late last year, it went on to wreak havoc.

With sustained winds of up to 240 km/h, it was the joint fifth most powerful storm ever to hit the US – and the country’s third costliest weather disaster in history – resulting in estimated losses of $112 billion.

To insurers, this kind of natural catastrophe presents not just a financial challenge, but also a practical one. How do you expedite claims and help people as fast as possible?

For Brit Insurance, the answer came courtesy of AI. Its rapid damage assessment tool, nicknamed ‘Golden Eye’, uses a machine learning algorithm to assess post-disaster aerial imagery and group properties by level of damage. This enables claims to be triaged before they are even reported. Brit had many policyholders who were affected by Hurricane Ian. When the tropical cyclone dissipated on 30th September, the company was able to make its first payment just eight days later.

“We could never have been able to do that with humans,” says Sheel Sawhney, Brit’s Head of Claims and Operations. “It has been transformative for us.”