Future proofing insurance: can AI fill the knowledge gap?

This year, a record 4.1 million Americans turned 65, which has a major impact on a variety of industries, including the insurance industry. To make matters worse, only 4 percent of millennials—those born between 1981 and 1997—are considering insurance jobs.

With veteran professionals heading toward retirement and not enough new talent coming up, the industry is facing a major brain crisis. Could artificial intelligence be the solution to this growing problem? According to Michael Schwabrow (pictured), senior vice president of sales and marketing at Cloverleaf Analytics, the signs point to yes.

Democratizing access to data

With the US insurance industry facing the loss of more than 400,000 workers by 2026, Schwabrow highlighted the important role AI tools can play in supporting young professionals. By enabling these startups to extract data insights quickly and efficiently, AI can help ensure that the industry continues to thrive during this ongoing transformation.

“As an underwriter, I can simply type or ask the AI ​​system to create a writing management dashboard that filters the data based on my preferences,” Schwabrow explains. This accessibility extends to senior management as well. For example, a CEO can ask why a certain claim is under-reserved by a significant amount, and AI can quickly drill down to provide the necessary information.

While AI can fill information gaps, Schwabrow cautioned against relying on it blindly. “Since algorithms are human-made, they can unintentionally perpetuate discrimination,” he explained, stressing that the industry must always remember the use of ethics and caution.

However, when considered thoughtfully, Schwabrow highlighted how technology can empower professionals to drive meaningful change with ease. He said, “If you have a young writer who wants to enter the organization and do good, if they have the ability to use data and technology, they can help move MGA or the carrier forward, because now they are strong. to do more without having to do all the heavy lifting.”

“At the end of the day, it's about giving people who may not have the expertise to interact with insurance data the ability to do so,” Schwabrow said.

Bridging the insurance knowledge gap

With AI tools at your disposal, young professionals have a powerful technological arsenal that enhances their ability to make informed decisions, ultimately expanding their knowledge base.

Additional ways AI can support new insurers include:

• Access to fast support: AI-powered assistants provide quick answers to questions, helping young professionals adapt to their roles without needing constant supervision. This speeds up onboarding and builds confidence in navigating complex tasks.

• Details from historical data: By analyzing historical data for trends and patterns, AI enables new professionals to make informed decisions, especially in underwriting and application management, improving their performance in record time.

• Improved customer interaction: AI tools that analyze interactions can guide young workers in understanding customer needs and preferences. This improves their ability to provide relevant advice, improves customer satisfaction and strengthens key interpersonal skills.