Will Artificial Intelligence (AI) Ever Replace Insurance Brokers?

The acceleration of AI in every aspect of life brings potential benefits to every industry and profession on the planet, from information technology to healthcare, finance, marketing, transport and even the justice system. And that is by far not the complete list.

There are many who fear that robots and other AI-powered technology will render most jobs redundant. And certainly, the consensus among many experts is that a number of professions will be totally automated in the next five to 10 years. So, what will be the role of brokers, given the emergence of AI in insurtech?

How AI Has Accelerated Insurtech

The term ‘insurtech’ surfaced in the past decade to describe how technology can enable the insurance industry to streamline and manage a host of functions that dramatically improve accuracy, productivity, and customer service.

More recently, AI has fast-forwarded insurtech. From assessing risk and detecting fraud to reducing errors and claims processing, AI can facilitate smoother, faster, more efficient and streamlined services to consumers.

Can You Take Human Interaction Out of Customer Care?

These enhancements are an exciting evolution for insurance consumers in the digital age, who can experience rapid tech-enabled responses to insurance queries and claims. However, as multiple studies have shown, it takes more than speed and efficiency to build a strong client relationship. And the insurance broker industry is all about developing strong client relationships.

Research shows that customer loyalty is inextricably linked to the degree of care they experience from service providers, as shown in three areas:

Empathy - Research firm IDC noted in 2021 that customers want to be understood through their buying and customer service journey. It is this empathy, the firm points out, that makes us human, and which AI is unlikely to ever be able to emulate.
Emotional connection - A poll by marketing company, Iterable, showed that 83% of respondents said that they were more likely to do business with a brand that they have an emotional connection with. Emotional connections are made with human beings, not AI machines.
Trust - In a world where consumers have options for whatever product or service they want, consumers are looking for providers that are dependable, transparent, and trustworthy. Trust is the top factor that fosters a good client experience and is the determining factor in client loyalty.

Without an experience that ‘lives out’ these three elements, AI-driven solutions alone will never give insurance consumers the confidence and security they need from their insurance broker.

AI and the Skilled Broker

A skilled broker will leverage the advantages of AI to assist him in delivering fast and efficient service. But he or she also knows that AI will not be able to care for their clients. Clients need to feel that they matter and that their broker is truly there for them through all of life’s toughest experiences. When a client is in the middle of a crisis, he needs the service of his trusted broker, not automated voices on phone calls or bot prompts.

As AI increasingly cuts down on manual processes in the broker environment, customer care will emerge as the differentiating factor that divides AI-generated solutions for everyday insurance, and more in-depth and complex insurance needs and speciality products that require human-to-human trust, empathy, and emotional connection.

HFM’s slogan is “Your broker for life”. This forward-thinking statement not only reflects our commitment to providing superlative service from the moment a client signs up with us, but also our understanding of the opportunities that technology provides for us to live up to that undertaking on behalf of our clients. For more information, contact us today!