Extracted from VII Thematic Notebook FECOR «ChatGPT: The #CorredorTech clarifies the talk of Uncertainty«.
La technology It advances so fast that on many occasions it seems that reality is stranger than fiction. We are increasingly designing more systems that complement human action in different areas of life, ranging from personal to work and in all economic sectors, such as the insurance sector, where we cannot fail to include the channel of mediators.
Artificial intelligence (AI or AI in English) is that term that some 20 years ago seemed, as we said at the beginning, science fiction typical of futuristic Hollywood movies directed by Steven Spielberg, Ridley Scott or Stanley Kubrick, but that today is already is a reality. We may not (yet) see humanoid robots walking among us, but the use of this technology, which has increased considerably in recent years, is here to stay, for better or worse.
A few days ago, FECOR, the Federation of Professional Organizations of Insurance Brokers and Brokers of Spain, published and presented a new thematic booklet, which on this occasion aims to provide insurance brokers with a complete and practical overview of the use of ChatGPT in the insurance industry and, more specifically, in the broker channel.
ChatGPT: benefits for the broker's business
Getting into the subject, tools like ChatGPT have hit the table, offering instant knowledge on virtually any topic you ask. This artificial intelligence-based natural language processing (NLP) technology can help insurance brokers improve their efficiency and effectiveness. In general, it saves time and improves the efficiency of the company's internal processes, as well as improving communication and relationships with suppliers and customers, but how?
- Internal management of the company: It can help process large amounts of data and automate routine tasks, such as document sorting and labeling, scheduling, and to-do management, assisting brokers in decision-making by providing accurate and up-to-date information on trends. market and price developments.
- Supplier management: The AI can collect information from different providers and compare the different options available. ChatGPT can provide an overview of the prices and features of different products, helping brokers make informed decisions.
- Management and communication with insurance companies: It helps brokers throughout the process, from underwriting policies to processing claims. For example, in the underwriting of policies, ChatGPT can analyze the information provided by the client and generate a personalized coverage proposal.
- Communication and relationship with clients that allows to automate communications with clients from the beginning and can be integrated into the CRM system of the insurance broker.
Data protection and privacy: It is necessary to take into account the regulation
The use of technologies such as ChatGPT in the field of insurance is subject to various regulations related to the protection of personal data and privacy, implications that the regulations have for insurance brokers that use this technology. That is why these risks must be carefully identified and analyzed:
The implementation of ChatGPT in insurance brokerages implies the need to address the legal risks associated with the accuracy of the information provided, the responsibility for advice, the protection of personal data and regulatory compliance:
- Consider the accuracy and veracity of the information provided by ChatGPT, since there is a risk that the system offers inaccurate or outdated data, which could have legal implications if customers make decisions based on that erroneous information. To mitigate this risk, it is essential to ensure that the ChatGPT is programmed correctly and has access to reliable sources of information, such as current insurance legislation, policies and claim procedures.
- Consider the responsibility for the advice provided by the ChatGPT, since if the system offers recommendations or advice in relation to insurance, the question arises who takes responsibility in case of errors or negligence. Brokerages must clearly establish the limitations of ChatGPT and communicate to clients that the final advice will always be the responsibility of the insurance broker. In addition, it is crucial to have continuous monitoring of the system's operation to detect possible failures and correct them in time.
- Consider that the use of ChatGPT involves the processing of personal data of customers, which entails the duty to comply with the data protection regulations established in Spain, such as the Organic Law on Data Protection and Guarantee of Digital Rights (LOPDGDD) and the General Data Protection Regulation (RGPD). Brokerages must guarantee the confidentiality, integrity and availability of data by implementing appropriate technical and organizational measures. In addition, it is necessary to obtain the informed consent of the clients for the processing of their personal data by ChatGPT.
The formula: Technology + People
In short, the use of ChatGPT by insurance brokers can offer a series of significant advantages in terms of cost reduction, increased efficiency y improvements in customer experience and data accuracy.
However, it is also important to recognize that there are certain limitations and risks associated with its use in your daily activity. One of the most important limitations of ChatGPT is that, although capable of generating accurate and useful responses in many cases, it cannot fully replace a human agent. Although it can be very useful for resolving common and routine questions, AI still does not have the ability to fully understand the context of a situation, which can lead to inaccurate answers or misinterpretations of customer needs. Therefore, it is important that insurance brokers carefully monitor the use of ChatGPT and not consider it a one-size-fits-all solution.
Another important limitation is the need for high-quality data to obtain accurate and useful results. Artificial intelligence systems, including ChatGPT, rely heavily on data fed to them to train their algorithms and improve their accuracy. If the data provided is incomplete, biased, or unrepresentative, the results generated by the system may be inaccurate or useless. Therefore, it is important for insurance brokers to ensure they have access to a wide range of high-quality data to feed the system and ensure its accuracy.
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