Capitalising on GenAI: today and in the future

Alisha Fazo, senior director, product management – insurance solutions applications at Moody’s, on how the industry can capitalise on developments in generative AI.

According to a recent Moody’s study, the insurance industry is taking a pragmatic approach to using GenAI and a different path compared to other financial services sectors.

Unsurprisingly, the fintech sector leads the way, but with the insurance industry continuing its IT modernisation and cloud adoption journey, we anticipate that GenAI adoption will follow quickly for insurers. The industry’s pragmatic approach to GenAI adoption reflects a recognition that such tools come into their own when capabilities are embedded directly into an insurer’s day-to-day tools.

For Moody’s, our approach to GenAI is of a once-in-a-generation opportunity to do even more for our customers. To achieve this, we are integrating GenAI and machine learning capabilities into our risk management solutions and introducing solutions at relevant points across the insurance value chain.

All this is aligned with our objectives and principles, upholding Moody’s reputation of integrity and responsibility across all we do.

As mentioned before, many insurance clients are on a path toward IT modernisation and cloud adoption. At Moody’s, we now have over 350 clients using applications on the Intelligent Risk Platform (IRP) to process billions of risk modelling transactions per month, integrating their risk management from the point of underwriting to their overall book of business.

What is exciting is that every six weeks, Moody’s automatically rolls out new, cutting-edge features to all users on the cloud-native platform.

While this rapid roll-out and pace of innovation is beneficial, it can also create a challenge for users. Ensuring that our hundreds of IRP clients, whether they specialise in catastrophe modelling, exposure management or underwriting, are all empowered to adopt the new functionality and maintain a consistently high level of productivity is crucial.

But various obstacles can impede this goal. Clients may find it difficult to keep up with the latest functionality or when revisiting essential features, such as grouping or treaty editing after an event, without detracting from their primary task of risk analysis. Or a language difference between a client and their customer success manager may create communication barriers.

This is one example where the pragmatic use of GenAI solutions, integrated directly into our clients’ workflows, is paying dividends. We know our clients need immediate answers, but the speed of response can rely on customer success teams’ availability, potentially slowing down the modelling workflow. Identifying and addressing these barriers is essential for streamlining processes and enhancing client productivity.

To help our customers make the most of their Moody’s cloud-native applications, we have recently launched the IRP Navigator, a revolutionary 24/7 conversational AI assistant.

Integrated directly into the platform’s applications, the Navigator uses cutting-edge AI technology to offer on-demand responses to product inquiries and help with workflows across IRP services. Whether clarifying a specific application feature, assisting with data integration workflows, or offering insights on Moody’s RMS models, the Navigator offers a go-to solution for clients to get fast, accurate answers without leaving the platform.

The conversational AI assistant accesses a vast documentation repository, including Moody’s Support Center, software and model documentation, and the platform’s developer portal content.

With access to Moody’s documentation, the Navigator provides robust support across a spectrum of topics, tailored to a client’s specific needs and licensed products.

The launch of the IRP Navigator represents a new chapter in user experience on the platform. As businesses face growing complexities in risk modelling and analysis, the need for on-demand support and seamless workflows has never been more critical.

As the earlier study showed, our clients are not looking at GenAI in isolation, it needs to be embedded into workflows and tools to make tasks – big or small – much easier. Whether it is unearthing new insights from vast exposure databases, blending in multiple risk models for a unified view of risk, or finding out how to get the most out of a sophisticated risk application, we are working together with our clients to preview and discuss new risk innovations and prototypes.

Check out Moody’s Risk Labs, which operates as our insurance innovation centre to explore GenAI, offering a place where technology experts, software engineers, insurance industry professionals and customers can bring their collective talents together and explore the once-in-a-generation opportunity to do more.

Alisha Fazo, senior director, product management – insurance solutions applications at Moody’s