By Dave Brooks

Introduction

Artificial Intelligence (AI) is transforming the insurance industry in impressive ways, making processes faster, more accurate, and increasingly customer-friendly. Today, about 77% of insurance executives are actively integrating AI into their companies, and the global market for AI in insurance is projected to grow at 33% annually, reaching $79 billion by 2032 (Source: Conning, 2024). From predicting risk to offering personalized policies, AI is reshaping how insurance brokerages serve clients. This shift enables more accurate quotes, smoother claims, and proactive risk management—changes that benefit insurers and policyholders.

Speeding Up Processes

One of AI’s greatest advantages is its ability to accelerate processes. In insurance, tasks like processing claims or reviewing applications can be tedious and time-consuming when done manually. AI can handle these repetitive tasks, checking for errors and getting information processed in seconds instead of hours. According to Precedence Research, leveraging AI can decrease insurance claim processing times by nearly 40%.

AI can also scan claims for signs of fraud, flagging instances that might require a closer look. This helps companies provide a fair outcome for everyone and speeds up the process for customers. With AI taking on these tasks, insurance providers can save time and place more focus on serving their clients.

Personalizing Policies

No two insurance policies are the same and there is no such thing as a “one-size-fits-all” insurance plan. AI is making it easier for insurance companies to offer customized policies that cater to a person’s unique needs. By analyzing data from resources like home security systems or telematics devices in cars, insurers can assess what kind of risks a client faces and recommend coverage that addresses these concerns.

This makes customers feel more secure, knowing their insurance is not only protecting them but adapting to their specific lives. It also ensures they don’t purchase unnecessary coverage and are paying fair prices for the right protection.

Managing Risks Before They Happen

Another way AI helps is by improving risk management. AI can analyze vast sets of data to find patterns or trends that might lead to future claims. This allows insurers to predict potential issues and advise clients on preventing them before they become bigger problems. For example, some cyber insurance providers use AI to track risks in real time and alert clients about possible threats before an attack happens.

According to a report by McKinsey, using AI to manage risks can cut costs by about 15%, creating a win for both insurers and their clients. Fewer claims mean lower costs and less chance of financial losses for insurance companies, while clients enjoy better security and protection.

Making Compliance and Security Easier

Complying with industry regulations is essential in the insurance sector, yet it often demands significant time and effort. AI simplifies this process by swiftly scanning, analyzing, and verifying documents to ensure they meet compliance standards. By flagging irregularities in real time, insurers can address potential issues proactively and adhere to regulations without unnecessary delays. 

Furthermore, safeguarding customer data is critical – especially in today’s digital world. AI-powered cybersecurity tools can add an extra layer of safety in that regard by watching for suspicious activity and preventing data breaches before they happen. This application of AI builds customer trust and shows that the insurance provider is serious about keeping information private.

Billyard Insurance Group (BIG): Leading with AI

While many insurance companies are starting to explore AI, Billyard Insurance Group (BIG) is leading the charge with Precision – its AI-powered underwriting platform. 

BIG has adopted a proactive approach with Precision, ensuring that all the information included in a personal lines policy application is reviewed and validated from the outset. Precision analyzes data, quote details, and documents from each submission with incredible accuracy. This approach reduces human error and increases efficiency – enhancing the overall client experience with BIG.

For brokers, Precision automates repetitive tasks and streamlines the quote-to-bind process. This automation speeds up processing, reduces errors and omissions, and enables brokers to dedicate more time to client relationships and business growth. Clients, on the other hand, benefit from quicker service, fewer delays, and peace of mind knowing that their policy provides sufficient coverage that is tailored to their unique risk profile.

Through these efforts, BIG is reshaping the insurance landscape and establishing itself as a trailblazer in AI-driven solutions.

The Future of AI in Insurance

As AI continues to develop, it will likely grow to play an even bigger role in insurance. By improving efficiency, enhancing security, and providing more personalized service, AI is helping insurance providers and brokerages offer better coverage in a faster, more customer-friendly way. Billyard Insurance Group’s commitment to AI shows how technology can make the insurance experience more efficient while maintaining a high level of quality.

With AI as the new essential tool in insurance, the future of the industry looks promising, creating the potential for greater innovation, efficiency, and accuracy.

About The Author

Dave Brooks is the Director of Marketing at Billyard Insurance Group’s (BIG) Head Office. With an MBA in Marketing and a wealth of experience with major brands in telecommunications and insurance, Dave leads a dynamic team committed to advancing BIG’s vision of making insurance accessible and efficient through digital solutions, customer-focused initiatives, and a modern approach to industry challenges.