Future-proofing insurance: can AI fill the knowledge gap?

This year, a record 4.1 million Americans are turning 65, significantly impacting various sectors, including the insurance industry. To make matters worse, only 4% of millennials—those born between 1981 and 1997—are considering careers in insurance.

With seasoned pros heading for retirement and not enough fresh talent stepping up, the industry is facing a serious brain drain. Could artificial intelligence be the solution to this growing dilemma? According to Michael Schwabrow (pictured), executive vice president of sales and marketing at Cloverleaf Analytics, signs point to yes.

Democratizing data access 

As the US insurance sector braces for the loss of over 400,000 workers by 2026, Schwabrow highlighted the critical role AI tools can play in supporting younger professionals. By enabling these newcomers to distill data insights quickly and efficiently, AI can help ensure the industry continues to thrive amid this generational shift.

“As an underwriter, I can simply type or ask an AI system to create an underwriting management dashboard that filters data based on my specified preferences,” Schwabrow explained. This ease of access extends to higher-level executives as well. For example, a CEO can inquire why a particular claim is underreserved by a significant amount, and AI can quickly drill down to provide the necessary information.

While AI can bridge knowledge gaps, Schwabrow cautioned against relying on it blindly. “Since algorithms are human-made, they can unintentionally perpetuate inherent biases,” he explained, emphasizing that the industry must stay mindful of ethical use and careful implementation.

When leveraged thoughtfully, however, Schwabrow highlighted how technology can empower professionals to drive meaningful change with greater ease. He stated, “If you’ve got a young underwriter that’s looking to come into an organization and do good, if they have the ability to leverage data and technology, they can help catapult their MGA or carrier forward, because they now have the ability to do so much more without having to necessarily do all of the heavy lifting.”

 “At the end of the day, it’s about giving people who may not have the expertise to interact with insurance data the ability to do so,” Schwabrow added.

Minimizing the insurance knowledge gap

With AI tools at their disposal, young professionals have a powerful arsenal of technology that enhances their ability to make informed decisions, ultimately increasing their knowledge base.

Additional ways AI can support insurance newcomers include:

• Access to instant support: AI-powered assistants provide immediate answers to questions, helping young professionals quickly adapt to their roles without needing constant oversight. This speeds up onboarding and builds confidence in navigating complex tasks.

• Insights from historical data: By analyzing historical data for trends and patterns, AI enables new professionals to make well-informed decisions, particularly in underwriting and claims management, boosting their effectiveness in record time.

• Enhanced customer interactions: AI tools that analyze communication can guide young employees in understanding customer needs and preferences. This improves their ability to provide tailored advice, boosting customer satisfaction and strengthening essential interpersonal skills.