HOW A GENERATIVE AGENT SELLS INSURANCE
In the ever-changing world of technology, companies across all industries are looking for ways to optimize their operations and improve the customer experience. In the insurance sector, one innovation that’s gaining ground is that of generative agents, a type of artificial intelligence (AI) that can interact autonomously and coherently with humans.
Generative agents can be programmed to answer frequently asked questions, explain insurance terms, provide basic quotes, and manage appointments and reminders. Moreover, they are available 24/7, which means they can offer uninterrupted customer service, regardless of the time zone or availability of human staff. These capabilities may seem simple, but they are the first step towards creating what AI experts call Artificial General Intelligence (AGI). Of course, we are still far from achieving AGI. However, generative agents are a step in that direction. The use of generative agents in the insurance industry allows us to experiment with more sophisticated AI, learning how it can be best used to benefit businesses and consumers.
In addition, generative agents allow us to explore some of the ethical and security issues that the implementation of AGI will inevitably raise. For example, how do we ensure that generative agents act in the best interest of the customer? How do we manage data privacy and security in a world where generative agents have access to sensitive information?
Imagine a not-so-distant future where you need an insurance policy. Instead of phoning an office and waiting for an agent to be available, you connect with a generative agent through your preferred digital device. Here, we’ll take you through this journey, from the first contact to getting the insurance policy, with a generative agent:
STEP 1: FIRST CONTACT
In the digital age, initiating a conversation with a generative agent is as simple as opening an app or visiting a website. You could be sitting in a cafe, at your office desk, or in the comfort of your living room, and the generative agent is just a few taps or clicks away. The moment you make the first contact, the generative agent comes to life. It greets you with a friendly message, akin to a warm reception you’d receive when walking into a physical store. The greeting could be as simple as, “Hello! How can I assist you today?”
You respond, “I’m looking for a life insurance policy.” The generative agent, trained on vast amounts of data and capable of understanding the context, acknowledges your needs. It might respond, “Absolutely, I can help you with that. Life insurance is an important decision and I’m here to guide you through it.” At this stage, the generative agent is not just acknowledging your request, but also setting the stage for a detailed, personalized conversation. It understands that you’re seeking life insurance, which is an umbrella term that can include various types of policies such as term life, whole life, or universal life insurance, among others. But the agent also recognizes that it needs more information about your specific needs and circumstances to provide the best possible service.
So, instead of jumping right into the details, the generative agent gently guides the conversation towards the next step: Information Gathering. It might say, “To help find the best life insurance policy for you, I’ll need to ask you a few questions. Is that okay with you?”. And with your consent, you and the generative agent embark on the next stage of your insurance purchasing journey. This first contact, although seemingly simple, is the essential foundation upon which the rest of the process is built. It’s where the generative agent establishes a connection with you, understands your primary need, and prepares to dive deeper into the specifics to serve you better.
STEP 2: INFORMATION GATHERING
Once the initial contact has been established and your need for a life insurance policy identified, the generative agent moves into the information gathering phase. This step is crucial because the data collected here informs the entire process that follows, from providing an accurate quote to matching you with the best possible policy. The generative agent starts by asking questions about your age and general health status, as these are two key factors that insurance companies consider when determining policy premiums. It might ask, “May I know your age and how would you describe your overall health?” Remember, the generative agent is designed to respect your privacy and confidentiality. All information shared is secure and used solely for the purpose of helping you find suitable coverage.
Next, the generative agent might delve into more specific aspects of your health and lifestyle. It could ask questions about your medical history, like “Have you been diagnosed with any medical conditions in the past?” It may also inquire about lifestyle factors that could impact your policy, such as whether you are a smoker or engage in high-risk activities. After gathering health and lifestyle data, the generative agent turns its attention to your coverage needs. It could ask, “How much coverage are you seeking?” or “What are your financial goals with this policy?”. These questions help the agent understand your financial situation and objectives, ensuring that the policy recommendations align with your personal goals.
The generative agent is adept at leading this conversation in a sensitive and respectful manner. For instance, it might preface a sensitive question with a statement like, “Some of these questions might be personal, but they are crucial to help us find the best policy for you. Remember, all the information you share is private and only used for this purpose.”
This detailed information gathering process provides the foundation for the generative agent to offer personalized, accurate quotes and policy recommendations. All the data is collected securely, and the agent’s goal is to make the process as easy and comfortable as possible for you. The result is a seamless, efficient, and personalized insurance purchasing process, tailored to meet your specific needs and circumstances.
STEP 3: PROVIDING A QUOTE
Armed with the information collected in the previous step, the generative agent now moves to providing a quote. This is where the process starts to get really personalized, as the agent uses the data you’ve shared to calculate a life insurance quote tailored specifically to your needs and circumstances. The generative agent uses complex algorithms, along with its understanding of insurance industry standards and practices, to calculate a quote. It factors in your age, health status, lifestyle, and the amount of coverage you need, to provide an accurate estimate of what your life insurance policy might cost.
But it doesn’t stop at providing a single quote. The generative agent recognizes that insurance is not a one-size-fits-all solution. Different people have different preferences and financial constraints. So, it presents you with several options, each offering different levels of coverage at varying costs. For example, it might say, “Based on the information you provided, here are a few options for you to consider”. For each option, the generative agent also explains the pros and cons. It doesn’t just present you with numbers, but also helps you understand what those numbers mean. For instance, it might say, “Option A offers a high coverage amount but also comes with a higher premium. It’s a good choice if your priority is to secure a high level of financial protection for your family.”
Or, “Option B has a lower premium and also a lower coverage amount. This might be a suitable option if you’re looking for affordable protection”. Throughout this step, the generative agent’s goal is to make the insurance buying process as transparent and easy to understand as possible. By explaining the pros and cons of each quote, it empowers you to make an informed decision about which policy is the best fit for your personal needs and financial situation.
STEP 4: EXPLAINING TERMS AND ANSWERING QUESTIONS
When presented with a life insurance quote, it’s normal to have questions, and understanding the terms of the policy is crucial. At this stage, the generative agent is prepared to serve as an educator, offering detailed explanations and answering any questions you might have. If you’re curious about what exactly is covered under a proposed policy, the generative agent can provide a breakdown. It might say, “This policy covers death due to both natural causes and accidents. It also includes a terminal illness benefit, which means if you’re diagnosed with a terminal illness, a portion of the death benefit can be paid early to help with medical expenses.”
Similarly, if you’re wondering about what isn’t covered, the generative agent can clarify that too. It could explain, “Typically, life insurance policies do not cover deaths due to suicide within the first two years of the policy, or deaths resulting from acts of war”. Understanding how the premium price is determined can also be a common question. The generative agent can shed light on this by saying, “Your premium is determined based on several factors. These include your age, overall health, whether you’re a smoker, and the amount of coverage you want. Higher risk factors or higher coverage amounts typically lead to higher premiums.”
The generative agent’s explanations are aimed at making the insurance language accessible. It avoids jargon and explains everything in clear, everyday language. If there’s a term you don’t understand, it can define it for you. For example, if you ask, “What is a premium?” It can explain, “A premium is the amount of money that you pay to the insurance company, usually monthly or annually, to keep your policy active”. At every step of the way, the generative agent is there to make the process of understanding and purchasing life insurance as easy and transparent as possible. It’s equipped to answer your questions, clarify doubts, and guide you towards a policy that suits your needs.
STEP 5: COMPLETING THE PURCHASE
After you’ve thoroughly reviewed your options, understood the terms, and had all your questions answered, the next step is completing the purchase. At this stage, the generative agent continues to support you, guiding you through the purchasing process. The agent first assists you in choosing the policy that best fits your needs. It could ask, “Have you decided on which coverage option suits your needs best? If you’re unsure, we can revisit the options and discuss them further.”
Once you’ve made a decision, the generative agent then helps you with the paperwork. In the digital world, this might mean guiding you through online forms. The agent could say, “Now, let’s fill out the necessary forms to get your policy started. I will guide you through each step”. As you fill out the forms, the generative agent can explain any unfamiliar terms or fields. If there’s a question about naming beneficiaries, for instance, it can explain, “A beneficiary is the person who will receive the policy payout in the event of your death. You can name one or more individuals as beneficiaries”.
Once the forms are filled out, the generative agent informs you about the next steps. If a medical exam is required, it lets you know. It might say, “Based on the information you’ve provided, a medical exam may be required to finalize your policy. The insurance company will contact you to schedule this at your convenience”. Finally, once all the steps are completed and the insurance company has approved your policy, the generative agent confirms the issuance of your policy. It could say, “Congratulations, your life insurance policy is now active! Here are your policy details”. Throughout this process, the generative agent simplifies the often complex and tedious process of purchasing insurance. It guides you through each step, provides explanations as needed, and keeps you informed about what’s happening. The end result is a seamless, efficient, and personalized insurance purchasing experience.
STEP 6: POST-SALE SERVICE
The issuance of the policy marks a significant milestone in the insurance purchasing process, but it’s far from the end of the journey. After-sales service is an integral part of the insurance lifecycle, and the generative agent is fully equipped to support you even after your policy is active. The generative agent remains available to answer any questions you may have after the purchase. If you’re unsure about certain aspects of your policy or need clarification on terms and conditions, the agent is ready to help. For instance, you might ask, “Can I add more coverage to my policy in the future?” The agent could respond, “Yes, many policies allow you to increase your coverage. However, this might require a new underwriting process and could potentially increase your premiums”.
The agent also provides important reminders about premium payments. It can say, “Just a reminder that your next premium payment is due on the 1st of next month. You can make the payment through your online account or set up automatic payments”. If the unfortunate need arises to initiate a claim, the generative agent is there to assist you. It can guide you through the claims process, explaining each step and providing all the necessary information. For example, it could say, “I’m sorry to hear about your situation. To initiate a claim, we’ll need to gather some information. I’ll guide you through each step.”
The real power of the generative agent lies in its round-the-clock availability. Whether it’s late at night or early in the morning, you can access the agent at a time that suits you best. You don’t have to worry about business hours or waiting times.
In essence, the future of the insurance industry, bolstered by generative agents, is one of increased efficiency, accessibility, and customer focus. As the field of artificial intelligence progresses towards Artificial General Intelligence, the potential for even more profound changes and improvements is immense. The generative agent serves as a powerful example of how AI can transform industries, making processes smoother and more user-friendly, and we’re excited to see where these developments take us.
CONCLUSION
As the landscape of technology evolves, generative agents are at the forefront of revolutionizing the insurance industry. They provide services around the clock, answer questions, guide through the insurance purchasing process, and are there for support after the policy is issued. These AI-driven entities offer a level of convenience and flexibility that is unparalleled. However, the role of generative agents goes beyond being digital assistants. They are stepping stones in our journey towards Artificial General Intelligence (AGI), an ambitious goal that could significantly transform the way we conduct business in the insurance sector.
While we’re still on the path towards AGI, we can’t overlook the profound changes that generative agents have already brought to the industry. The insurance sector, aided by these AI-powered agents, is becoming more efficient, customer-focused, and personalized. In light of these exciting developments, we invite insurance brokers and companies to be part of this revolution.
Don’t miss out! Join our exclusive waitlist at BELLA Twin to be one of the first to experience the future of insurance sales with our upcoming generative agent product. As an early adopter, you will gain access to innovative features, special benefits, and the opportunity to shape our platform from the ground up. Sign up now and be at the forefront of this transformation. Indeed, these are exciting times in the field of artificial intelligence and insurance. We look forward to embarking on this journey with you as we continue to explore the potential of generative agents and AGI. The race towards AGI is on, and we eagerly anticipate where this exciting journey will take us.
About the author: Gino Volpi is the CEO and co-founder of BELLA Twin, a leading innovator in the insurance technology sector. With over 29 years of experience in software engineering and a strong background in artificial intelligence, Gino is not only a visionary in his field but also an active angel investor. He has successfully launched and exited multiple startups, notably enhancing AI applications in insurance. Gino holds an MBA from Universidad Técnica Federico Santa Maria and actively shares his insurtech expertise on IG @insurtechmaker. His leadership and contributions are pivotal in driving forward the adoption of AI technologies in the insurance industry.
