As expectations for speed and convenience rise, insurance companies are under growing pressure to deliver fast, seamless service to their clients. Yet, as M-Files warns, speed without accuracy—especially when deploying generative AI—can risk customer satisfaction and ultimately harm a firm’s reputation.
Consumer satisfaction within the insurance sector dropped to 84% in Q4 2024, according to recent research from the Chartered Insurance Institute, compared to 86% the previous year.
This dip highlights a growing service gap that insurers are attempting to bridge through digital innovation. However, experts caution against rapid implementation of GenAI solutions without the proper data infrastructure in place.
M-Files senior industry solutions manager Yohan Lobo stressed the importance of balancing efficiency with reliability. Lobo said, “To streamline the way they interact with customers, generate quotes, and present their product portfolio, insurance firms are exploring how digital technologies (specifically, GenAI solutions) can be integrated across business functions. Engaging with the latest innovations is essential for firms across the board, as successful deployment can unlock significant improvements in efficiency.”
He noted that insurers often face obstacles such as paperwork-heavy processes and regulatory compliance hurdles, which slow down onboarding and policy renewals. These bottlenecks challenge firms’ ability to meet rising client expectations. Lobo suggested that automation can play a key role in addressing these pain points by removing repetitive tasks and boosting underwriting quality while remaining compliant.
Lobo highlighted the potential of GenAI in cutting administrative workload, especially in summarising policy documents. However, he warned that premature deployment often leads to faulty outputs. “This typically occurs when insurers introduce GenAI tools without first ensuring they have a trusted bank of internal data their model can draw on,” he said. “In such cases, inaccurate outputs are common, which negatively impacts user experience.”
He advised firms to focus on building reliable data foundations before rolling out new AI tools. “Therefore, taking time to develop a reliable solution is the safest way to deliver optimised performance in the long run,” he added.
Concluding, Lobo emphasised that the core of the insurance sector remains built on trust. “The insurance industry is built on trust and client advocacy; both suffer if clients don’t have a great experience with the firm which ultimately impacts revenue and reputation. Responding to customer requests at pace is an integral element of this process, but the accuracy of AI tools in use must remain a top priority.”
M-Files, the company behind these insights, provides a platform designed to automate knowledge work through AI, metadata-driven architecture, and workflow automation, helping companies improve efficiency and compliance.
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