Artificial Intelligence (A.I.) is poised to significantly transform the insurance industry, particularly through the widespread adoption of parametric insurance policies, according to Thomas Wetzel, an A.I. and cybersecurity expert in the insurance sector. Speaking at the annual convention of the Florida Association of Insurance Agents in Orlando, Wetzel highlighted the pivotal role A.I. will play in expanding insurers’ comfort levels with covering diverse risks.
Parametric insurance, which triggers payouts based on predefined parameters like windspeed or flood levels, stands to benefit immensely from A.I.’s capability to analyze vast amounts of data swiftly and accurately assess risks for properties and businesses. Wetzel emphasized that this data-driven approach allows for faster claims processing, enabling property owners to initiate repairs promptly and mitigate further damage.
“The average car claim takes about six minutes. A.I. can do it in six seconds,” Wetzel pointed out. “This efficiency will drive the adoption of parametric insurance across various insurance lines.”
Despite these advancements, Wetzel reassured insurance agents that A.I. will complement rather than replace their roles. Clients will continue to value personal interactions and the expertise agents provide. While certain segments, such as auto insurance bundled with new car purchases, may see increased automation, Wetzel emphasized that the human touch remains indispensable in insurance sales and service.
Moreover, Wetzel cautioned against over-reliance on A.I. tools like ChatGPT or Microsoft Copilot, suggesting instead that agents integrate these technologies as virtual assistants to enhance productivity and broaden their offerings. Transparency with policyholders about the use of A.I. is crucial, particularly as insurers navigate evolving regulatory landscapes concerning A.I. and cybersecurity.
Speaking on the cybersecurity front, Wetzel and fellow consultant Logan Edmonds underscored the dual-edged nature of A.I., which cybercriminals increasingly exploit to enhance their attack methods. They advised insurance agents to implement stringent safeguards and regularly update cybersecurity measures to thwart potential breaches.
“The landscape of cybersecurity demands proactive measures beyond traditional defenses,” Wetzel emphasized. “Effective cybersecurity is a continuous service, not a one-time solution.”
Looking ahead, Wetzel emphasized the importance of self-regulation within the industry to navigate forthcoming federal and state regulations on A.I. and cybersecurity effectively. “Understanding A.I. and its implications is key to staying ahead in this evolving landscape,” Wetzel concluded.
The insights shared by Wetzel and Edmonds underscore a pivotal moment for the insurance industry, where embracing A.I. not only enhances operational efficiencies but also necessitates proactive cybersecurity strategies to safeguard sensitive data and uphold client trust.
