Technology in the UK protection industry is still woefully inadequate, which should allay fears that AI might 'take advisers' jobs, according to insurance specialists.
This was the thrust of a panel debate at the Protection Review conference 2023, held at London's Landmark Hotel today (December 6).
The session, entitled 'The great protection technology myth', and chaired by Roger Edwards, marketing director of Protection Review, explored the possibilities and opportunities that technological developments, including AI, could bring to the insurance profession.
But a question from the floor, asking 'is AI coming for advisers' jobs', led one panellist, Stephanie Hydon of iPipeline, to put delegates' minds at ease.
She said: "We have been using a lot of AI algorithms for years and what it can do well is help with consumer education and do a lot of the heavy lifting for advisers.
"Is it coming for your jobs? No. Even the next-generation customer will still want to speak with someone, but where AI can help is to get people started on their protection journey.
"It can help them have the right messages, at the right time, and enable advisers to have the deeper conversations. AI is not replacing advisers; it is about making things more efficient."
Speaking from the audience, Ian McKenna, founder of F&TRC, said: "I feel like Jack Nicholson in 'A Few Good Men' - you can't handle the truth.
"The truth is, the technology in the protection industry right now is embarrassing compared with what we could do with it."
He explained that in terms of adopting technology, at one point, protection advice was well ahead of wealth advice, but now the reverse was true.
"But I don't think it's the advisers' jobs that are at risk - it's the actuaries who should be worried.
"Back in 1943 the then chief executive of IBM said he could see the need for five computers in the world. Well, I can see a need for five actuaries - and only five."
He agreed that while baby boomers and some Gen X might like that personal touch and in-person experience, the industry as a whole needed to look at the next-generation consumer - Gen Y and Gen Z.
"We need to think about our future generations of customers and explore the possibilities that adopting new and better technology can bring."
simoney.kyriakou@ft.com
