Duck Creek Technologies has announced a partnership with Microsoft to offer generative artificial intelligence (AI) for property and casualty insurers. The key aim is to speed up the introduction of innovative applications into the market. However, GlobalData surveying suggests product development is the part of the insurance value chain that is least likely to be positively affected by AI.
As per a GlobalData poll run on Verdict Media sites, which was conducted in Q4 2023, only 2.9% of industry insiders believe product development will be the area of the insurance value chain most positively impacted by AI. In contrast, 55.4% of industry insiders believe underwriting and risk profiling will be the area of the value chain most positively impacted by the technology (see chart at top).
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Duck Creek Technologies, which specialises in insurance software solutions, empowers insurers with a robust set of tools and suites designed to streamline the product development process. One example is its embedded insurance solution, which allows carriers and distribution partners to seamlessly integrate insurance into a variety of products. The company’s diverse range of solutions caters to different lines of business, enabling insurers to create and customise products efficiently. Beyond front-end innovation, Duck Creek’s software solutions extend to optimising back-end systems, addressing critical areas such as compliance and claims management. By leveraging Duck Creek’s technology, insurers can enhance operational efficiency, ensure regulatory compliance, and ultimately deliver a seamless and customer-centric experience.
Duck Creek is aiming to streamline implementation processes and accelerate the introduction of innovative applications through its collaboration with Microsoft. Leveraging generative AI, particularly the capabilities of Azure OpenAI Service, the partnership aims to address the evolving needs of the insurance landscape, focusing on innovation and efficient product development.
A GlobalData poll run on Verdict Media sites in Q1 2023 found that while 76.3% of industry insiders were aware of generative AI tools such as ChatGPT, only 29.2% were making use of the technology. This gap between awareness and adoption may indicate potential barriers or challenges in integrating these tools into existing workflows and processes. It raises questions about what factors are influencing the hesitancy or delay in embracing generative AI on a broader scale. As part of the same poll, only 26.6% stated that they fully understand the technology. This lack of understanding could be a contributing factor to the relatively low adoption rate. It suggests that there may be a need for more education and training within the industry to empower professionals with the knowledge required to effectively leverage generative AI tools.
Overall, the partnership between Duck Creek Technologies and Microsoft highlights the potential for innovation within the insurance sector. Through the integration of generative AI, insurers can optimise implementation processes, expedite product development, and proactively adapt to dynamic market conditions.
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