Paul the Insurer 5: Computers communicate with computers in a compliance language

Find out how artificial intelligence and automation are revolutionizing the insurance industry in today’s podcast by Paul the Insurer.

Compliance, bureaucracy and increasing regulation characterize the insurance world, often to the frustration of those involved and at considerable cost. But one vision shows how artificial intelligence and automated monitoring could fundamentally change the industry: Computers communicating directly in a standardized compliance language, replacing manual controls and making room for greater efficiency, creativity and trust. Paul the Insurer looks at this pioneering development and what it means for insurers, insurance brokers and SMEs.

Compliance language: from mountains of paper to digital communication

Compliance today is a complex web of hundreds of pages of regulations that insurers and brokers have to adhere to meticulously. This bureaucracy ties up resources and drives up costs. These costs are ultimately borne by the policyholders. The vision: A standardized compliance language that is directly understood and processed by computers. Instead of lengthy manual checks, systems communicate automatically and precisely. This represents a quantum leap for the industry.

Artificial intelligence as a driver of change

The announcement of AGI, artificial general intelligence, opens up new horizons. While some warn of risks, we see opportunities for innovation and efficiency. In the insurance industry, AI could enable the automatic monitoring of all processes, from policy creation to claims settlement. This means fewer staff for compliance departments, fewer errors and more room for creative solutions that create real added value.

The vision: cooperation instead of competition

The key to success lies in cooperation. Responsible executives from insurers, brokerages and regulators could form a joint study group to develop this automated compliance solution. A supercomputer – the “Big Brother” of the new era – would take over supervision, while internal audits and external audits focus on analyzing the IT programs. The result is a system that creates trust while reducing costs and frustration.

Who implements the innovation? A look at the global stage

Innovative countries such as China could be pioneers in implementing this vision. But there are also opportunities to close the gap here in Germany. Curiosity, creativity and a willingness to collaborate are key to actively shaping this change. Insurance professionals who familiarize themselves with the basics of insurance and reinsurance are ideally equipped to benefit from this development.

Rethinking insurance – with courage and optimism

The insurance industry is facing a fundamental change. Automated compliance communication is no longer a distant dream, but a tangible future. We at thebrokernews also believe that this development will not only increase efficiency and accuracy, but also make room for more creativity and compassion. Follow Paul on this exciting journey and actively shape the future of insurance.

Binci Heeb

Subscribe to the “Paul the Insurer” newsletter here.

Listen and read also: Paul the Insurer 4: Amazon, AI and the future of the insurance industry