Artificial intelligence (AI) is reshaping the insurance industry, and successful adoption requires careful planning. Tony Villa, President of OneShield, shares key insights on how insurers can integrate AI to enhance efficiencies without disrupting operations.
Practical First Steps for Integrating AI Without Disrupting Operations
"AI is definitely frontier-level stuff that's changing rapidly, so it's natural to be cautious about its adoption," Villa explained. A practical first step is to focus on data hygiene, ensuring that AI has access to accurate and structured data. He recommends insurers take key steps, including:
"Having limited data sets that are thoroughly cleaned and vetted will create a strong data foundation and position AI initiatives for success," Villa added.
Using AI to Enhance Teams, Improve Decision-Making, and Drive Efficiency
Most insurers start their AI journey with chatbots or automated document processing to improve data access and decision-making. AI streamlines manual tasks, such as summarizing home inspection reports, which typically take underwriters about 30 minutes to review. AI can ingest data, redact personally identifiable information (PII), and generate a summary in seconds, making it immediately actionable. "This level of AI precision reduces cycle time, but does not replace the underwriter," said Villa. "Instead, it's a collaborative process that combines human expertise with machine learning – a 'human-in-the-loop' approach."
Overcoming Key Challenges in the AI Journey to Deliver Measurable Value
"I think the biggest challenge we face is thinking differently about the work we've been doing for the past 20 years," said Villa. "Using ChatGPT to help enhance the quality of and reduce the time it takes to put things in writing or researching topics feels natural. Who wouldn't want to spend less time writing emails or researching topics?" However, the challenge arises when AI begins to automate tasks professionals feel they have mastered. "What if I'm a senior underwriter and I am an expert at inspection report reviews?" Villa posed. "I may not be as open to using AI, even if it gives me back time in my day. Helping our team understand that AI isn't going to replace the work we do, but rather augment it, will be key to successful adoption."
How OneShield Helps AAIS Members Navigate the Evolving AI Landscape
OneShield is at the forefront of AI-driven transformation, offering two modern core systems: OMS and Enterprise. "Both solutions can be delivered as enterprise suites to automate policy, billing, claims, workflow, and reporting, or they can be implemented as a modular solution to address any one particular aspect of the insurance value chain," Villa explained. For AAIS Members, OneShield’s expertise in AAIS lines of business makes adoption even smoother. "Across our two products, we can support all AAIS lines. We have particularly strong experience with unique AAIS lines such as COP and Artisans," Villa noted. "Leveraging this experience to deliver pre-built AAIS content within our core solutions can accelerate core transformation projects at a significantly reduced cost to the insurer."
Learn more at OneShield.com.
To view the full interview with Tony Villa, click on the video above.