​Generative AI can make embedded insurance ‘more productive’ – Ericson Chan

Generative artificial intelligence (AI) can make many aspects of embedded insurance “more productive”.

That was according to Ericson Chan, group chief information and digital officer at Zurich, who spoke during his keynote speech yesterday (20 March 2024) at Insurtech Insights Europe 2024.

Embedded insurance is a way for businesses to include insurance policies as an add-on to sales journeys.

Chan told delegates that large language models (LLMs) such as ChatGPT were “particularly useful” for insurance firms because many remain reliant on legacy code in systems.

Chan said that AI was “phenomenal” for underwriters because it solves the issue of information being in different languages and can cut through issues such as these in as little as a day or a few hours.

Embedded insurance

Chan’s comments followed Zurich launching its updated Zurich eXchange 2.0 AI platform last week (18 March 2024).

The platform utilises embedded insurance to ”let the customer come to [Zurich]”, Chan explained.

He added: “This is why Zurich has spent time and effort investing into a platform as core.”

Besides embedded insurance, a couple years ago Zurich discussed insurance 3.0, which it described as a service-led contextual model.

“Instead of simply giving financial coverage, we want to be approved to help the customer manage the risk, be preventative and be engaging in service level,” Chan said.

“It’s a simple equation. The future is going to get a lot faster and more productive in an exponential way.”