In this series of articles written by Gen Z’ers, we explore the perspectives, challenges, and opportunities the young generation must face both in their private and professional lives
The future of claims and underwriting in the insurance industry is set to be revolutionised by AI and digital technologies, driven significantly by the tech-savvy Gen Z workforce.
In an era where technology has become an integral part of daily life, Generation Z stands at the forefront, transforming the landscape of artificial intelligence. Born into a world brimming with digital advancements, Gen Z’s inherent affinity for technology is not just shaping their personal and professional lives but is also steering the future of AI in profound ways.
Educational transformation
Gen Z, born between 1996 and 2012, has grown up with unparalleled access to the internet, smartphones, and social media. This constant connectivity has ingrained technology into their daily routines, making them exceptionally proficient with digital tools. Unlike previous generations who witnessed the evolution of technology, Gen Z has known nothing but a tech-saturated world. This unique upbringing has equipped them with an intuitive understanding of digital platforms, enabling them to harness AI’s potential effectively.
Gen Z’s immersion in technology extends into their educational pursuits, reshaping traditional learning paradigms. The integration of online platforms like Coursera and Udemy, offering courses in data science and UX design, caters to Gen Z’s demand for flexible, tech-driven education. Moreover, interactive tools such as whiteboards and gamified apps have become staples in modern classrooms, enhancing learning experiences and fostering digital literacy from an early age.
The impact of Gen Z’s growing presence in the workplace
As Gen Z transitions into the workforce, their technological adeptness becomes an invaluable asset. They are projected to constitute 27% of the workforce by 2025, bringing with them a deep-seated familiarity with AI and digital tools. Their comfort with technology not only improves efficiency but also drives innovative approaches to problem-solving.
Organisations stand to benefit immensely by incorporating Gen Z into their AI strategies. Their education often includes components of computer science, coding, and data analytics, preparing them to engage with AI on a professional level. Their diverse perspectives foster creativity and inclusiveness, essential for developing AI solutions that cater to a wide array of needs. Furthermore, Gen Z’s collaborative spirit aligns seamlessly with the interdisciplinary nature of AI projects.
How Gen Z and AI are transforming insurance
The future of claims and underwriting in the insurance industry is set to be revolutionised by AI and digital technologies, driven significantly by the tech-savvy Gen Z workforce. The insurance working model is set to switch from detect and repair to predict and prevent. This generation’s comfort and expertise with AI and digital tools will enhance productivity and efficiency in insurance processes. AI will streamline claims processing by automating routine tasks, reducing errors, and accelerating decision-making. It will also improve underwriting accuracy through advanced data analytics, providing more personalised and precise risk assessments. The shift will likely see younger professionals leveraging AI to perform tasks faster and with higher quality, ultimately transforming the insurance landscape into a more efficient and innovative sector.
Some examples relating to the above-described improvements in the insurance industry can be observed by insurers such as Turkish Anadolu Sigorta and AXA. The former managed to improve its ROI by 210% in one year only by adapting to an AI-based predictive model for identifying claim-related fraud. It resulted in total cost savings of $5.7 million. On the other hand, AXA successfully predicted large MTPL losses for their policyholders with a 78% success rate, using a Machine Learning model developed by their Japanese R&D team. Naturally, massive implications for the profitability of the company were experienced.
Actively shaping an AI-driven world
Gen Z is not merely adapting to the AI-driven world; they are actively shaping it. Their intrinsic understanding of technology, combined with their innovative mindset, is propelling AI into new territories. As they continue to enter the workforce and influence various sectors, their impact on AI will only grow stronger. By embracing Gen Z’s unique qualities and perspectives, organisations can unlock unprecedented potential in AI, ensuring they stay ahead in the rapidly evolving technological landscape. Observing and learning from Gen Z’s interaction with AI offers valuable insights into the future, highlighting the exciting possibilities that lie ahead.
Sources:
https://intelliarts.com/blog/applications-of-machine-learning-in-insurance/
https://futurium.ec.europa.eu/en/european-ai-alliance/forum-discussion/inclusive-ai-regulation-why-gen-z-must-shape-future-eu-ai-act
https://genzidentitylab.com/generation-z-meets-artificial-intelligence/
https://www.mckinsey.com/industries/financial-services/our-insights/insurance-2030-the-impact-of-ai-on-the-future-of-insurance#/
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