Executive Summary:
Large language models (LLMs) have the potential to revolutionize the insurance industry by automating underwriting, sales, and policy-servicing processes. Additionally, the ability to embed third-party payment links in apps could threaten Apple’s stronghold on app distribution and monetization. Visa is launching a new service called Visa+, which will act as a meta layer for peer-to-peer (P2P) transactions across different platforms. The website https://a16z.com/investments/ provides information on unannounced investments in publicly traded digital assets.
Key Insights:
1. LLMs can collect and distill large amounts of data, which can augment or replace the process of a human combing through data, improving decision-making on simple products like auto and home insurance.
2. LLMs can help gather data to help underwriters make better decisions, especially in more intricate cases like large commercial policies.
3. LLMs trained on customer data or materials can help answer complex questions for consumers about what policies they should buy and how that policy might impact their unique needs.
4. Allowing LLMs to manage some of the conversations in policy-servicing divisions could dramatically improve efficiency and profitability.
5. Visa’s Visa+ initiative aims to connect peer-to-peer payment platforms and create an interoperable path for third parties to connect to P2P customers through a single platform, potentially becoming the clearinghouse for instant P2P payments.
Business Impact:
The use of LLMs in the insurance industry can improve decision-making, efficiency, and profitability. Businesses in the insurance industry should consider investing in LLM technology to stay competitive. The ability to embed third-party payment links in apps could threaten Apple’s stronghold on app distribution and monetization, providing opportunities for developers to build deeper relationships with their customers and drive greater profits. Businesses should consider incorporating third-party payment links in their apps to increase revenue. Visa’s Visa+ initiative could become the clearinghouse for instant P2P payments, providing fraud detection and security. Businesses in the P2P payment industry should consider partnering with Visa to take advantage of this service.
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Read the full article:
https://a16z.com/2023/05/31/generative-ai-is-coming-for-insurance-may-2023-fintech-newsletter/