Insurance Sector Embraces AI Tools — Cautiously

Via Joe Bednar at BusinessWest

Nathan Lee, vice president at Rush Insurance in Chicopee, said AI can improve aspects of a data-driven business that can get thorny without it. For example, “on the broker side, we feel like our technology stack is fragmented. There are management systems, rating systems, different carrier portals,” he said. AI, he said, can help create a more centralized system.

“In the grand scheme, we’re a smaller broker, and there are national firms out there. But it’s a pretty exciting time for us because we’re at the point where we can compete with the nationals,” he added, noting that software that would have taken $80,000 to develop and deploy internally in the past may cost $10,000 today. “With the advent of AI tools, we feel like we can develop things faster, cheaper, and easier than we’ve been able to in the past.”

Still, Lee said, it’s critical not to let AI take over distinctly human parts of the insurance world.

“We don’t use it for any client-facing materials, nor internally to digest proprietary information,” he noted. “Everyone who’s done that is playing with fire. I can’t imagine anyone wanting to do that — or to publicly state that they do.”

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