Unplugging the Myths: How Generative AI is Transforming Insurance Distribution

In a recent episode of Insurance Unplugged, host Lisa Wardlaw sat down with Margeaux Giles , CEO and founder of IRYS Insurtech . Known for her innovative approach to reshaping insurance distribution, Giles shared some profound insights on the practical applications of generative AI (GenAI) in the insurance distribution space. Here’s a breakdown of the key takeaways from their discussion, as Giles highlighted the future of AI-driven systems and their transformational impact.

Distribution Defined: It’s More Than Just Sales

One of the biggest misconceptions about insurance distribution is viewing it solely as a sales function. Giles quickly dispelled this myth by explaining how distribution enterprises require not only sales enablement systems but also operational and administrative systems as complex as those used by carriers. She emphasized the need for real-time administration, transaction processing, and robust corporate infrastructure. This foundational understanding is key to harnessing the true power of GenAI.

The Core Misconception Around GenAI

The common belief is that simply integrating tools like ChatGPT, Bard, or other bolt-on solutions checks the box for AI adoption. Giles argued against this “checkbox mentality.” GenAI isn’t just about deploying chatbots or productivity tools; it’s about embedding AI into core operational processes, ensuring it works seamlessly with your systems rather than sitting on top of them.

AI must be more than a superficial add-on—it should be integrated deeply into the workflows that make distribution enterprises operate more efficiently. “You can’t train AI on bad data,” Giles stated, driving home the importance of mastering data quality before layering AI solutions on top.

"AI-enabled, dynamic decision workflows are the next wave of how generative AI will be used. It's without a doubt where all of the tech startups are moving towards right now—really dynamic decisions and workflow." -Margeaux Giles

Data as the Foundation for AI

GenAI is only as powerful as the data it learns from, and according to Giles, data quality in the insurance space is notoriously poor. A key revelation she shared from her own experiences was how over half of the contacts in her old agency system were duplicates, showing how easily data can become unmanageable.

IRYS Insurtech is solving this by implementing AI for data quality as a service, ensuring that duplicates are identified and data is cleaned up in real-time. This process isn’t glamorous, but it’s essential for ensuring that any AI-driven analytics or decision-making processes are based on solid foundations.

"You cannot train AI on incorrect substandard dirty data. You can't do it." -Margeaux Giles

Dynamic Forms and Policy Comparisons: GenAI in Action

A major application of generative AI in IRYS is through dynamic forms. Traditionally, agents would have to answer the same questions for multiple carriers, a repetitive and inefficient process. IRYS Insurtech leverages AI to recognize when questions essentially ask the same thing, streamlining the process and allowing agents to answer once while automatically populating multiple documents. This saves time and enhances operational efficiency.

Another use case Giles highlighted is policy comparison. Generative AI allows for real-time comparisons between current and past policies, identifying key differences such as new exclusions or policy language changes. Embedding this capability within the workflow is game-changing, as it provides instant feedback, saves agents from tedious manual reviews, and reduces errors.

"When we talk about dynamic forms, we're using generative AI in a way that reads and reasoning all these questions, which are actually one question. With AI, we don't need you to ask the five versions of the question. We only need you to ask the one." -Margeaux Giles

Real-Time Decisioning: Scaling Distribution with AI

One of GenAI's most profound impacts on insurance distribution is its ability to enable real-time decision-making. Giles explained that most insurance systems rely on batch processing or retrospective analysis. In contrast, IRYS enables near real-time data processing and decision-making.

This shift empowers agents and brokers to make informed decisions on the spot, offering immediate insights into commissions, policy options, and operational efficiencies. It also allows enterprises to be more agile and responsive, enabling them to turn initiatives around quickly without being bogged down by legacy systems and manual processes.

"GenAI allows the enterprise to turn on a dime because you're doing and seeing that in real-time. Not only are you seeing the result of it, but you're able to move and shift in line with a company initiative proactively." -Margeaux Giles

The Road Ahead: Start, Stop, and Continue

For anyone looking to adopt GenAI in the insurance distribution space, Giles offered some practical advice:

? Start: Take technology and its procurement seriously. AI should be viewed as an ongoing investment, not a one-time implementation. Look at how the technology will scale and serve you over the next decade.

? Stop: Avoid piling on multiple-point solutions that don’t work cohesively. A scattered tech stack will ultimately hinder adoption and create inefficiencies.

? Continue: Keep the customer at the center of your strategy. Even as technology advances, remember that insurance is an emotional purchase tied to people’s most valuable assets—homes, families, and businesses.

"I have major concerns. But, I think my single largest concern is pulling people out of this mindset that software tech is a one-and-done implementation." -Margeaux Giles

Conclusion: The Future of GenAI in Insurance Distribution

GenAI is already reshaping the insurance distribution landscape. However, as Giles emphasized, the key to success is seamlessly embedding AI into your operations' core. It’s not about the hype—it’s about using AI to build systems that can scale, enhance efficiency, and deliver better outcomes for both agents and customers.

"That's the power we see when you embed AI in a workflow. That's why that yield is so high; that workflow doesn't need to be coded." -Margeaux Giles

To stay ahead in this fast-evolving space, it’s essential to master your data, invest in the right technology, and think long-term about how AI will continue to shape the future of insurance distribution.

For more, click here to listen to the full episode of "In the Hot Seat" from Insurance Unplugged with guest Margeaux Giles and host Lisa Wardlaw . Thank you to IRYS Insurtech for sponsoring this season of Insurance Unplugged.

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