Expert Perspectives | Intelligent Transformation of the Insurance Industry: Application and Prospect of Large Model Technology

In the digital age, the insurance industry is facing unprecedented transformation pressure. How to utilize emerging technologies, especially large model technologies, to achieve business innovation and intelligent transformation has become an important issue for insurance companies. This report will explore the current application status, future prospects, and challenges of large model technology in the insurance industry from three aspects.

1、 Empowering the Intelligent Transformation of the Insurance Industry with Large Model Technology

The big model technology, with its powerful data processing and analysis capabilities, is empowering the intelligent transformation of the insurance industry in multiple fields.

（1） Intelligent risk assessment and pricing

By analyzing massive historical data, big models can discover hidden risk factors, predict more accurate premiums and payout ratios, and optimize insurance companies' risk management strategies. According to McKinsey's research, the application of artificial intelligence and big data models will transform the insurance industry from a "discovery and repair" model to a "prediction and prevention" model, fundamentally changing every aspect of the industry.

（2） Intelligent customer segmentation and personalized services

Big model technology can also help insurance companies achieve more refined customer segmentation and provide personalized insurance products and services for different customer groups. By analyzing customer behavior characteristics, risk preferences, and other data, big models can help insurance companies better understand customer needs, provide insurance solutions that are more tailored to the actual situation of customers, and improve customer experience.

（3） Intelligent fraud detection and prevention

Fraudulent behavior is one of the major risks faced by the insurance industry. The big model technology can discover potential patterns of fraudulent behavior by analyzing historical compensation data, customer behavior data, etc. This will help insurance companies identify and prevent fraud risks in a timely manner, reduce unnecessary losses, and improve operational efficiency.

2、 The challenges faced by the application of big model technology in the insurance industry

Although the big model technology has brought great opportunities for the intelligent transformation of the insurance industry, it still faces many challenges in practical application.

（1） Data quality and integration issues

The quality of data in the insurance industry varies greatly, and how to integrate this data and ensure its accuracy is a major challenge. Insurance companies need to invest a large amount of funds and technical resources to improve data quality and achieve effective data integration, which puts high demands on their technical and economic strength.

（2） Technology investment and talent challenges

The research and application of large model technology require a large amount of funding and technical talent support. Insurance companies need to continuously invest in the field of technology, as well as introduce and cultivate high-end technical talents to support the application and iterative upgrading of large model technology.

（3） Regulatory and Privacy Compliance Challenges

In the process of applying big model technology, insurance companies need to strictly comply with relevant laws and regulations to ensure the privacy and security of customer data. This puts higher demands on the compliance capabilities of insurance companies. Insurance companies need to find a balance between technology application and compliance risk management, ensuring the promotion of intelligent transformation under the premise of legality and compliance.

3、 Future prospects for the intelligent transformation of the insurance industry

Looking ahead to the future, big model technology will empower the intelligent transformation of the insurance industry in a wider range of fields, human-machine collaboration will become a new working mode, and technological innovation and regulatory policies will also develop in a coordinated manner.

（1） The application fields of large model technology continue to expand

With the continuous development of big model technology, its application in the insurance industry will continue to expand. In addition to traditional fields such as risk assessment, customer service, and anti fraud, big model technology is also expected to play a greater role in product innovation, marketing strategy optimization, and customer churn prediction, injecting new impetus into the intelligent transformation of the insurance industry.

（2） Human machine collaboration has become a new working mode

With the support of big model technology, the insurance industry will gradually realize a new working mode of human-machine collaboration. Machines will undertake more data analysis and decision support tasks, and artificial intelligence will be combined with human professional knowledge and experience to jointly complete more complex tasks, improve work efficiency and quality.

（3） Coordinated development of technological innovation and regulation

The intelligent transformation of the insurance industry cannot be separated from the drive of technological innovation, but at the same time, it also requires the guidance and regulation of regulatory policies. In the future, the insurance industry needs to find a balance between technological innovation and regulatory compliance, promoting the healthy and sustainable development of the industry. Regulatory authorities also need to keep up with the times, improve relevant policies and regulations, and create a favorable institutional environment for the intelligent transformation of the insurance industry.

The big model technology has brought new opportunities and challenges to the intelligent transformation of the insurance industry. Insurance companies need to actively embrace this emerging technology, increase its application in areas such as risk assessment, customer service, and anti fraud, and improve its level of intelligence. At the same time, we should also pay attention to challenges in data quality, technology investment, talent cultivation, and compliance risk management. Only by finding a balance between technological innovation and regulatory compliance can the insurance industry steadily move forward on the path of intelligent transformation and achieve high-quality development.