As insurers face growing pressure to meet rising customer expectations, the rush to adopt generative AI (GenAI) tools is putting accuracy at risk, according to M-Files.
Recent data from the Chartered Insurance Institute showed consumer satisfaction in the insurance sector fell to 84% in Q4 2024, down from 86% a year earlier. In response, many firms are deploying GenAI to improve efficiency across customer interactions, quoting processes, and product delivery. But M-Files senior industry solutions manager Yohan Lobo warned that moving too fast without the right data foundation can backfire.
Lobo said, “To streamline the way they interact with customers, generate quotes, and present their product portfolio, insurance firms are exploring how digital technologies (specifically, GenAI solutions) can be integrated across business functions.”
He noted that while GenAI can reduce manual work—such as summarising policy documents—it often produces inaccurate results if not supported by clean, reliable internal data. This, in turn, damages the user experience.
Instead of prioritising speed, Lobo recommends first removing manual bottlenecks through automation and building a trusted data bank for AI models. “Taking time to develop a reliable solution is the safest way to deliver optimised performance in the long run,” he added.
He concluded, “The insurance industry is built on trust and client advocacy; both suffer if clients don’t have a great experience with the firm which ultimately impacts revenue and reputation.”
M-Files offers an AI-driven platform that helps firms automate knowledge work and ensure compliance while boosting productivity.
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