Advancements in AI and machine learning are transforming the insurance industry, boosting efficiency and enhancing customer experiences. However, Dan Epstein, CEO of ReSource Pro, warns that over-customization is becoming a concern. While personalization is important, too much customization can undermine insurance productivity and create organizational chaos.
The problem: Balancing personalization and productivity
With the insurance industry facing significant workforce challenges, companies must strike the right balance between customizing and standardizing processes. With estimates suggesting that the US insurance sector could lose over 400,000 workers by 2026, insurance companies must optimize their existing workforce. Although AI can help, too much customization can complicate processes, leading to inefficiencies.
One solution: Digital readiness
Digital readiness has a unique meaning for every organization, but typically includes understanding workflows, maintaining clean data, and documenting procedures. A standardized approach can create more predictable processes, simplify market expansion efforts, and encourage collaboration between insurers and insurtech firms.
By embracing standardization where appropriate, the industry can realize both efficiency and innovation. Companies must focus on customizations that enhance productivity rather than hinder it.
This is a summary of an article originally published by Insurance Business Magazine. Click here to read the full article.
