Generative AI’s Expanding Role in Insurance: Beyond Efficiency to Product Innovation

Generative AI is rapidly evolving in the insurance industry, moving beyond tasks like drafting reports or assisting underwriters and agents. Recent innovations suggest AI will soon play a more direct role in insurance products and risk management. Drawing inspiration from companies like Honeywell, which is integrating AI to streamline operations and enhance product offerings, the insurance sector could benefit from similar advancements.

For example, AI-powered tools such as computer vision in driver safety, home monitoring sensors, or smart assistants for risk prediction could become essential features. As AI technology develops, insurers may shift from providing standard policies to offering dynamic, AI-driven insights and solutions, fostering stronger, ongoing relationships with policyholders.

Furthermore, the concept of agentic AI, which allows AI to autonomously manage tasks, could eventually transform business operations in industries like insurance. However, concerns about AI’s potential errors, or "hallucinations," suggest that this might take time to fully realize.