Challenges and Opportunities for Insurance Practitioners in the age of AI

By Dr. Francois Fong - CEO of Neo-Health Group

The rapid development of Artificial Intelligence (AI) technology has brought significant challenges and opportunities to the prospects of insurance practitioners. Here's an analysis of AI's impact on the insurance industry and how insurance practitioners’ roles are evolving. 

What are the Challenges for Insurance Practitioners?

Here is a non-exhaustive list of where traditional insurance agents will face competition from AI.

a. Product Recommendation Automation:  Technology is good at analysing large amounts of data quickly.  AI can analyze customer needs through big data to quickly match the most suitable insurance products, reducing reliance on manual recommendations.  This will directly challenge the traditional roles of many existing insurance agents.

b. Improved Underwriting and Claims Efficiency: Technology is also very good at scenario analysis and calculating probabilistic outcomes to risk scenarios. AI can automate underwriting assessments, claims reviews, and even predict risks, significantly reducing manual intervention. This will directly challenge the existing positions in underwriting and claims adjustment.

c. Trends towards more Customer Self-service: Technology can effectively display data and visuals tialored to the viewer's interests. Customers can obtain real-time information through AI chatbots and intelligent customer service, reducing the need for consultation from practitioners. This will challenge the consultant’s traditional role of being the provider of product and service information.

d. Data-driven Risk Management: As mentioned in point b., technology is highly efficient at sourcing and analysing large amounts of data quickly. But this is further enhanced as AI can monitor risks in real-time through Internet of Things (IoT) devices (e.g., health bands, onboard sensors) and dynamically adjust premiums. 

How will the Future Role of Insurance Practitioners Trans-form?

Given the various challenges listed above, the role of insurance practitioners will change from Product Sellers to Risk Management Consultants and Customer Experience Designers, as envisaged below.

a. The Professional Advisor and Trust Creator:  AI will never be able to fully replace trust and emotional connections in human interaction.  Thus, explaining and providing personalised advice on complex risk scenarios and insurance terms will be critical at the individual level.  This will be even more important when talking about complex family issues about insurance and wealth transformation involving many human parties and interactions.

b. Integrated Risk Management Expert:  For the foreseeable future, regulations will prevent companies from being full-service (in the broadest of terms) providers and thus the AI of these companies will remain more narrow in scope than what some individuals and families require.  Therefore, consultants can provide solutions that ‘reach across the silos’ to provide a full-service solution to the client. 

c. Customer Experience Designer:  AI can provide standardized services but less able to provide ‘creative’ solutions. Practitioners, unlike AI systems, are not constrainted and can truly work from a blank slate.  So, consultants can still succeed in creating personalized services in areas like health management and lifestyle to enhance customer loyalty.

d. The Intermediary, creating the bridge between technology and the customer:   Not all, perhaps not even many, customers will truly understand all the possible offerings that might be generated from an AI programme.  And though not for all, but for many, there will remain the human need to discuss with a trusted advisor before making a decision.  Practitioners need to understand AI technology and translate it into value that customers can understand.  This will allow the consultant to explain the logic behind AI-recommended insurance plans to clear customer doubts and provide judgment in complex scenarios that AI cannot yet handle (e.g., emotional factors, moral hazard). 

What will be the Core Skills for Insurance Practitioners in the Future? 

To become the key ‘trusted advisor’ between the customer and the AI technology available, the consultant will require some, new key skills.

a. Data Literacy: understand the basic principles of AI and big data, and be able to interpret data reports.  

b. Cross-domain knowledge: integrate expertise in insurance, law, taxation, healthcare, and more.  

c. Emotional Intelligence (EQ): build trust, handle customer emotions, and provide humanized service.  

d. Innovative thinking: design new insurance products and service models to meet the diverse needs of customers.  

Closing Thoughts

AI technology will reshape the landscape of the insurance industry, but it will not completely replace insurance practitioners. Future practitioners must evolve into professional consultants and customer experience designers, combining AI's efficiency with human warmth to deliver irreplaceable value. Here are some concrete steps to be taken:  

Actively learn AI and data analysis skills to improve scientific and technological literacy.

Deepen the professional field (e.g., high-net-worth customer service, enterprise risk management) to establish differentiated advantages 

Strengthen emotional intelligence and customer relationship management capabilities, and become a long-term partner trusted by customers

Dr. Francois Fong - CEO of Neo-Health Group

Dr. Fong has a broad and deep knowledge of the healthcare sector as both a practitioner and researcher. He is also an accomplished entrepreneur and business manager making him both subject matter expert and a business leader. Having built a successful business in Hong Kong he is now expanding his business ventures into the GBA and Southeast Asia.

In addition to being Founder and CEO of Neo-Health Group, located in Hong Kong, he is Honorary Clinical Assistant Professor at both – The University of Hong Kong and The Chinese University of Hong Kong.