During a recent panel at Insurtech Insights Asia held in Hong Kong, Edward Moncreiffe, CEO of Global Insurance at HSBC, discussed the transformative potential of artificial intelligence (AI) in the insurance sector, as well as the industry's ongoing challenges in adapting to digital trends. Joined on stage by Hung Wai Wong, President of Insurtech Insights Asia, Moncreiffe articulated his perspectives on the delicate balance between technology and human interaction in building customer relationships.
Moncreiffe asserted that while AI holds significant promise for enhancing productivity, it would not replace the trust established between customers and their representatives. “AI will never replace the trust that a customer has with an intermediary or with an institution in my lifetime,” he noted. Instead, he sees AI as a tool to increase agents' efficiency and mitigate risks associated with high-stakes areas of insurance distribution, such as training, product selection, and customer engagement. By embedding AI into their operations, companies can standardise processes and empower agents and intermediaries, allowing them to dedicate more time to serving complex customer needs.
He provided several examples of how AI can be applied to the insurance industry. The technology can automate routine tasks, freeing up agents to focus on personalised service. Furthermore, AI's ability to analyse large datasets allows firms to identify and reduce risks related to training and potential fraud.
The conversation also touched upon the impacts of cryptocurrency on the insurance landscape. Moncreiffe highlighted that specialty insurance providers are beginning to explore the nuances of insuring unregulated digital assets. “If you were to go to Lloyd’s of London right now, or Bermuda, you’d see quite large capital pools being allocated to effectively cyber risks and asset risk carriers trying to solve for this exact question,” he explained. He underscored the rising necessity for robust insurance solutions as the value of cryptocurrencies escalates and its regulatory environment evolves.
As the industry undergoes a digital transformation, Moncreiffe noted the growing challenge of attracting a younger workforce. He expressed concern that many graduates view insurance as an unexciting or stagnant career option compared to more glamorous sectors of finance or commerce. “Without stereotyping, insurance is normally not the first choice,” he stated, citing a demographic challenge within the sector.
Moncreiffe highlighted the urgency for the insurance industry to improve its image and attract new talent. He posited that emphasising advanced technologies, such as AI and data analytics, could make careers in insurance more appealing to prospective employees. He suggested that structured programmes and mentorship opportunities might cultivate the next generation of insurance leaders by demonstrating the innovative potential within the field.
Concluding his remarks, Moncreiffe advocated for the embrace of AI as a collaborative tool and signalled the vitality of investing in technological advancements and young talent to secure a prosperous future for the insurance sector. By adopting these strategies, the industry can position itself to thrive amidst an ever-evolving business landscape marked by digital innovation.
Source: Noah Wire Services