Sprint or marathon? Flexibility is key in the race for AI success, says Genpact

As artificial intelligence (AI) becomes more integrated into the insurance sector, one major question arises: are we advancing too quickly in a space that demands patience or too slowly in an era of rapid innovation?

Yasir Andrabi, leader of life and annuity insurance at Genpact, told Intelligent Insurer how excited he is about the life insurance industry's journey toward AI transformation.

"AI is changing the way we do business. It is going to do what mobile phones did to the telecommunications industry and what Apple did to BlackBerry. It's not just an incremental improvement – it marks a fundamental shift in how we operate," Andrabi explained.

As organizations navigate their AI journeys, the key challenge remains: how do life insurers adopt AI in a way that generates tangible value?

"AI is completely reshaping how the life insurance industry has been working," Andrabi said.

"Data has always been accessible, but what's changing is how that data is being used. It's about making better decisions that benefit the policyholder and the insurance company, whether that's better experience, better access, or better risk management," Andrabi added.

He emphasized the importance of a well-defined problem statement when embarking on an AI journey.

"The clarity of the problem statement will get you to a point of a successful implementation of an AI program," he explained.

"Ask 'what am I trying to solve?', 'how am I going to solve it?', and then 'what do I need in order to solve it?'. It will address data, available technologies, processes, and the impact of any change to the employees of the organization and to customers.

"The earlier you are able to define all of those, the better your implementation pathway," he added.

According to Andrabi, it's not just about throwing technology at a problem but remaining flexible.

"Remaining nimble and empowering teams to make decisions with agility is extremely important."

The power of AI in transforming underwriting, pricing, and risk assessment in the life and annuity industry is undeniable – for both insurers and end customers. Andrabi noted: "Accurate underwriting decisions that get the right coverage for individuals and personalize it to their requirements become much easier and more accessible through AI.

"AI enables insurers to be more precise in decision-making, whether that's on coverages, limits, or premiums," he observed while reiterating that the human element remains central.

"AI is never going to be the be-all and end-all of anything. It can aid better underwriting and better risk assessment/scoring, but there has to be a human in the loop in order to keep training the machine to get better."

A great use case for AI is simplifying worksite and group insurance, where customers often face complexities.

AI can be a great resource for employers to help their employees navigate the enrollment process and understand the coverages. Andrabi pointed to AI's role in policy management, where life events such as a birth or death in the family trigger necessary policy changes.

Andrabi noted the increasing demand for digital tools as younger generations enter the workforce. "Gen Z and Gen Alpha are much more comfortable with digital tools and expect instant answers," he said.

A happy employee leads to a better customer experience, and AI is increasingly enabling this. "The strength of AI today is in being more human-like, more conversational," he noted.

Looking ahead, Andrabi believes that a few factors will separate leaders from laggards in the AI race.

"Stay true to the fundamentals of why you, as a life insurance company, are in the business. Don't lose sight of that as you bring in new technologies," he said.

However, he emphasized the importance of experimentation. "You have to experiment to fail fast and move on."

Change management, he noted, is crucial.

"It cannot be somebody's hobby. It has to be a conscious effort and a program that drives change in the organization across stakeholders.

"This is not a 100-meter sprint; it's a marathon. To be successful, your stamina to sustain change has to be significant. You have to break the journey into consumable, bite-sized projects.

"But you have to stay agile and keep changing your pace without losing sight of the fact that you're running a marathon," he concluded.

Watch the full video interview below.

The article first appeared in Intelligent Insurer, where Michele Bacchus, associate editor, interviewed Yasir Andrabi, Genpact's global business leader for life and annuity insurance.