From: Captive Insurance Times
The use of AI platforms such as ChatGPT is exponentially on the rise and there is potential for the captive industry to use the platform. However, the risks shouldn’t be taken lightly
Amid public concern about the rapid development of artificial intelligence (AI) platforms, many industries have been left wondering whether AI platform ChatGPT could benefit them.
Insurtech within captive insurance is no exception. In this competitive landscape, it is essential for captive insurers to embrace new tools and methods to increase the efficiency of their business operations.
However, the industry has witnessed a general trend of insurance companies slow to expand their technological capabilities.
OpenAI’s ChatGPT is a chatbot that uses a generated pre-trained transformer (GPT) to absorb massive amounts of data. It then processes natural language to provide users with a human-like response. It has more than 100 million users, according to Reuters (as of January 2023).
Captive insurers can harness new technologies and help organisations innovate, but these efforts must be aligned with the goals of the parent company.
Alex Gedge, senior captive consultant at Hylant, comments: “I’ve not seen much adoption of ChatGPT in the industry as yet, though there has certainly been discussion. Brokers and consulting teams are researching and exploring ways to adapt and adopt new technologies. This research is ongoing, particularly in captives where there is a focus on emerging risks and creating insurance solutions for markets that do not have them yet. For example, where a client has a very specific risk which is not industry wide.”