How will this new game be played?
A great deal is still to be determined
In the brief time since AI was formally introduced to the
world at large just a few years ago, it has shifted
the definition of the phrase “speed of change.”
By Cheryl L. Koch, CPCU, ARM, AAI, ACSR, AFIS and Mary M. Belka, CPCU, ARM, ARe, RPLU, CIC
There’s a new game in town. It’s not your imagination; the explosion of information, opinions, and predictions, all laser-focused on artificial intelligence (AI), is here and it’s real. There are already suites of AI tools available and being employed across our industry and others.
AI has captured the imagination of many, while striking fear into the hearts of more, as yet another “global shift” must be navigated in a world already fraught with countless challenges.
In the brief time since AI was formally introduced to the world at large just a few years ago, it has shifted the definition of the phrase “speed of change.” Disruption has somehow become the “new normal.” What’s an insurance professional to do?
Interestingly, as we searched for initial answers to this question, we found that the very characteristics we’ve identified over a couple of lifetimes still hold true. The order of importance may have shifted, but a firm foundation is the key. Quality matters, even in a world seemingly hell-bent on seeking the proverbial holy grail of “efficiency” and profit at the expense of all else.
We share those primary components here, with perhaps some new twists that will help the best agents to transcend fear and confusion, and to think of the possibilities.
Whether you are hiring or being hired, the organizations—and people—who find continuing success exhibit these characteristics, almost without fail. Challenges bring opportunities and some things remain true, despite the pressure of rapid change, which is really nothing new.
- Clean-up on aisle five. The purpose of so many tools designed over the past 50 years has been to carve out time for the tasks most meaningful to our clients. Time to take advantage of the indisputable efficiency AI is bringing. Time to identify the meaningless tasks no one should be doing and clear the way for identifying ways to increase efficiency on what remains.
Be intentional; create, codify, and make mandatory all improved AI-based processes. This would be a good idea regardless of the existence of AI, but there’s no time like the present to get it done at last. Invariable processes are the foundation for efficiency; this approach makes true creativity possible. - Adaptability. Embrace change in a world that fears it will make you stand out. Most people hate change, and the speed of change has never been more breathtaking. It will take resilience and persistence—grit—to learn new ways of doing things while the world may be focused on doing away with the job you are currently doing.
Those who have not been allowed to fail and those who’ve had little experience overcoming adversity on their own are ill-prepared to face, much less embrace, global shifts. Those who possess this intangible yet essential quality will be valued more than ever. Adaptability eliminates the paralysis of fear. - Sense of urgency. Always a hallmark of our industry, urgency has never been more important. Act as though a wildfire is trying to overtake you—because it is! In the past, late adoption seemed prudent; today, “the single biggest advantage you can have right now is simply being early. Early to understand it. Early to use it. Early to adapt.” So says Matt Shumer in his article titled “Something Big is Happening.”
- Be intentional. Strategically plan and direct—and audit—how you use the time you save with AI enhancements and be certain they actually improve your offerings and provide true return on investment (ROI). Some areas to avoid are the tired and endless “drip marketing” approaches and robotic articles and website content that better AI tools—with the help of talented humans—have already surpassed.
Find creative and interesting ways to communicate the value of becoming your client. Focus on identifying and attracting the best possible prospects to your agency. Require full implementation of customer relationship management (CRM) sales tools by producers; guide clients to use time-saving software options to provide information; insist on effective, efficient, and “findable” file documentation; record meetings and organize resulting tasks; eliminate unnecessary back-and-forth in the submission process; and more.
Create time and headspace for what really matters, like adding quality clients faster and making certain you retain them because of your unmatched understanding of their needs—and ability to deliver a world-class experience. All this can be aided by AI. - Knowledge. True knowledge makes everything else possible. Isn’t that the promise of AI?
The fact that it was originally able to “learn” everything that existed on the internet up until 2021, in about a two-year span, has formed its knowledge “foundation.” Now, AI is teaching itself and absorbing ever more from us. Our intellectual curiosity gives us the ability to solve problems, be creative, and to exercise sound judgment. These critical human skills can be enhanced by emerging AI tools.
The world keeps serving up new exposures and legal challenges. Knowledge—and all it entails—will ensure that we are up to the task of solving new puzzles. Never stop learning; AI won’t. - The human touch. Using the best tools creates time to solve our clients’ problems and to make certain their exposures are handled properly every time. In our work, we see that relationships absolutely matter and, in fact, younger generations seem to yearn for real information from knowledgeable professionals as much or more than older clients.
Such quaint, “retro” communication methods as personal notes and the occasional phone call that cannot be replicated by AI, are appreciated and now seen as “going the extra mile” to cement relationships. Having the judgment to know when to employ them is an intangible skill that humans still possess. The best clients seek the best professionals to meet their needs, which include basic human connection—something missing for many in today’s transactional world. - Empathy. It still matters. There are those who are convinced that AI will “learn” this as well; we shall see. In the meantime, it’s an advantage, and your clients and industry partners still want and value it.
- Critical thinking. Working with—and directing—complex systems, not just people, will become an increasingly essential skill set. Critical thinking, unfortunately, is not being developed as it once was from an early age. It is no longer a given, and sound judgment is not possible without it.
The ability to weigh options and outcomes based upon past experiences and knowledge is a differentiating factor for your agency—and in life. Our profession requires these skills and those who embody them will always be in demand. - Management of multiple and shifting priorities. At the core of true efficiency is the ability to determine on an ongoing basis what is critical by its very nature at any given time—and what is not. AI can help you to get things done; it will likely eventually learn the nuances of any particular position.
However, in the meantime, remaining relevant involves the ability now more than ever for associates to understand how work should flow, and how to use all available tools to create the most efficient workflow possible to serve clients well—and profitably. Those who can manage all levels of data well, using available tools including AI, will bring the greatest value to the organization. - Imagination. No one knows for sure, but one hopes this will remain the greatest tool that humans bring to the game. It was, after all, human imagination that created AI—for good or for ill.
In a capitalistic environment, humans will always seek efficiency to improve and succeed in their endeavors. AI was beyond anyone’s imagination in the not-too-distant past.
New inventions currently unheard of are likely already in the making in someone’s imagination, waiting to be developed and implemented. Anyone who has ever seen or read of Michelangelo’s inventions (to say nothing of his amazing works of art), knows the power of imagination. Many of his ideas weren’t actually proven viable or put to use until centuries had passed, yet he could somehow see them working in his mind’s eye when others could not. - Brain, courage, heart. Sound familiar? We could also say, Scarecrow, Lion, Tin Man. There are certain characteristics that transcend time and cannot be replicated by machines—at least for the foreseeable future. These are the intangible attributes most admired—and most needed to meet challenges, including harnessing the power of AI.
- Rock, paper, scissors, AI. How will this new game be played? Who will win? Who might lose? A great deal is still to be determined. It is clear that we are just at the beginning of something that is moving at lightning speed.
In the space of this column, we haven’t even contemplated the many benefits—or challenges—it will bring from a risk management/insurance standpoint. Just imagine what they may be!
As an industry, it was left to us to respond to societal issues that others could not seem to resolve, for instance, widespread catastrophes; nuclear verdicts; a pandemic; parametric insurance; captive insurance; and emerging exposures, including EPL (employment practices liability), climate change, pollution, cyber, and drones, to name just a few.
AI is simply the newest tool at our disposal; our job is to be certain we are up to the task of deploying it.
The authors
Cheryl Koch is the owner of Agency Management Resource Group, a California firm providing training, education and consulting to producers, account managers and owners of independent agencies. She has a BA in Economics from UCLA and an MBA from Sacramento State University. She has also earned several insurance professional designations: CPCU, CIC, ARM, AAI, AAI-M, API, AIS, AAM, AIM, ARP, AINS, ACSR, AFIS, and MLIS. Mary M. Belka is owner and CEO of Eisenhart Consulting Group, Inc., providing management and operations consulting to the insurance industry. She also is an endorsed agency E&O auditor for Swiss Re/Westport. A graduate of the University of Nebraska, Mary holds the CPCU, ARM, ARe, RPLU, CIC, and CPIW designations.
