Limitations of Artificial Intelligence

AI Doesn’t Consider a Client’s Best Interests

Artificial Intelligence (AI) has emerged as a valuable tool for many professionals. As its role continues to expand, it is crucial to consider both the advantages and limitations of this new technology. Adopting AI into everyday life can be beneficial in some ways but might be detrimental in others.

Insurance carriers often highlight their automated underwriting platforms, which boast the use of AI to quickly review a medical file.  This program saves time when compared to the hours, days, or even weeks an underwriter might take to review, depending on the volume of files in their queue. This AI process can be a time saver for all parties involved and a cost saver for the insurance carrier. However, the cost savings do not necessarily extend to the client.

In contrast to other financial products, the cost of life insurance is entirely dependent on how a client's health is underwritten. Traditional underwriting combines both art and science; while medical records provide factual health history, lifestyle and other factors add depth to an individual's overall health assessment. These additional factors can only be incorporated through traditional underwriting, as AI automated underwriting focuses solely on the documented facts.

The disadvantage for clients is significant, especially if their health or habits are less than ideal. Automated underwriting lacks the ability to advocate for the client's best interests, and the offer will not be negotiated for improvement. Consequently, automated underwriting may lead to higher prices than those achievable through traditional underwriting. The trade-off of premium savings for time savings could ultimately prove to be very costly for clients.

Our expertise spans both traditional and automated underwriting techniques, allowing us to provide guidance through any underwriting process while prioritizing our clients’ best interests.

We welcome any questions or opportunities to assist you or your clients in achieving identified goals. We take pride in serving a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.