4 minute read
Is Artificial Intelligence a Smart Move for Voluntary Carriers?
By Eastbridge Consulting Group, Inc.
Voluntary benefits carriers have been cautiously dipping their toes into new technology tools that help streamline operations and improve customer service. Eastbridge’s recent “Application Programming Interface and Artificial Intelligence Carrier Practices” Frontline™ Report shows nearly two-thirds of carriers support API data exchange, and most of the rest are building that capability or modernizing their systems to enable it.
But far fewer carriers surveyed say that they are using artificial intelligence, and even fewer are using AI specifically for their voluntary/worksite business. Carriers cite the newness and viability of the technology, evolving internal strategies for using AI, and the investments and resources needed to support it as reasons to keep their feet dry.
For now.
A strong majority (73%) of carriers not currently using artificial intelligence say they expect to use it in the future most of them within the next 6 to 12 months, although a few say it’ll take 2 to 3 years.
How Carriers Use AI
Carriers already using AI implement it most often in business areas, including claims, underwriting and customer experience. A handful of carriers use it for marketing or policy issue. None report using AI for voluntary benefits enrollment or product development purposes.
Working Smarter, Not Harder
Most carriers using AI for claims say it has improved the claims filing or payment process through decreased processing, faster turnaround times and greater efficiency for claims examiners. Carriers surveyed say AI allows them to auto-adjudicate health and wellness claims, and even helps them identify additional potential supplemental health claims policyholders could file.
The jury isn’t all in yet on the ultimate benefit to their business, though. Two-thirds of carriers using AI say that it has increased their efficiency and accuracy, but a third say they don’t know yet. And only a few report that their increased speed and cost savings are differentiating them in the market.
Caution With Customers
Direct customer contact is an area where most carriers are still treading cautiously. Carriers using AI for customer support cite benefits including: seamless integration of benefit choices and decision-support tools, the option to interact with a virtual assistant for 24/7/365 service, and the ability to provide employees with unique, personalized recommendations and next actions.
However, only a few carriers say that customers interact directly with their AI system to get information or support, and all offer human assistance by giving customers the ability to transfer from a virtual assistant to a live representative by phone or online.
Overcoming Challenges
The fast pace of innovation and the ability to quickly implement new uses of the technology are some of the challenges carriers cite with AI. Some carriers also express concerns about data accuracy from existing internal systems, brokers and employers, and the accuracy of outcomes or decisions based on AI.
Monitoring processes or performance evaluations for AI systems, including internal tests or checks before deploying AI capabilities and audits to ensure AI is reaching the correct outcomes or decisions are some of the ways carriers are hurdling that obstacle.
Carriers also are still trying to find the best uses for AI versus human intervention. For example, using tools such as ChatGPT to create customer communications may not be effective, at least for now. The program’s website admits it can create errors: “ChatGPT is not connected to the internet, and it can occasionally produce incorrect answers. It has limited knowledge of world events since 2021 and may also occasionally produce harmful instructions or biased content”. Even when the language it produces is accurate, it’ll likely need human tweaking to align with a company’s brand and to create a friendlier, more conversational voice.
Still, carriers surveyed say they expect to see greater use and integration of AI in all aspects of their business. It may be time for those who want to increase productivity and improve customer outcomes to start wading in the AI water.
Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter. For over 25 years, they have built the industry’s leading data warehouse and industryspecific consulting practice. Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge.
