Advancing Customer Engagement in U.S. Insurance through AI-Driven Proactive Service
The insurance sector continues to face challenges with low customer engagement, particularly for long-held policies where interactions beyond claims or payments are minimal. Research from the Society of Actuaries indicates that the lack of ongoing engagement results in underutilized policy benefits and missed upselling or retention opportunities.
Traditional, reactive customer service models contribute to this limited engagement as insurers primarily contact clients only during specific transactional events. AI-driven solutions have begun transforming customer engagement across industries, and insurers are now exploring conversational AI combined with human oversight to create proactive, personalized, and context-aware interactions that transcend routine transactions.
Prudential Financial's Head of Customer Experience, Abhii Parakh, highlights the evolving nature of life insurance policies, which now include features like cash value accumulation and tax advantages, emphasizing the need for insurers to move from reactive to proactive engagement models. Prudential has successfully employed AI internally with strict risk controls but approaches customer-facing AI cautiously due to potential errors with sensitive operations like payment processing, advocating for a human-in-the-loop approach. Interactions’ EVP James Wood underscores the variation in risk levels depending on the AI use case, noting low to medium risks for automated outreach versus higher risks in financial transactions requiring compliance adherence. He discusses the concept of agentic AI, which autonomously uses multiple tools to complete outcome-driven tasks, representing the next evolutionary step beyond basic generative AI.
Early implementations in customer service blend predictive AI capabilities with human oversight to ensure accuracy and compliance, especially for complex workflows. Parakh points out that truly autonomous agentic AI systems with sustained memory and context are not yet enterprise-ready, particularly in customer-facing roles, maintaining that human involvement remains vital. Internally, AI is increasingly handling multi-step workflows, such as marketing content management, functioning as "virtual employees" under human supervision.
This transparent integration allows teams to monitor, intervene, or adjust AI actions in real-time, enabling operational efficiencies without relinquishing control. The article underscores the strategic importance of blending AI with human expertise to enhance customer experience, manage risk, and navigate regulatory compliance in the dynamic insurance landscape.