There's no question that AI is transforming insurance (and pretty much every white-collar industry at that). From underwriting and claims to customer service and fraud detection, AI is helping insurers process more information, recognize patterns faster, and make better decisions than ever before.
It’s super exciting.
But as I listened to a recent panel conversation — hosted by our partner Majesco — about what it means to become a "Frontier Insurer”, I found myself thinking less about artificial intelligence and more about what happens after it.
Specifically, what defines a “better” or “smarter” decision.
What actually makes a decision "smart"?
We often define a smart decision by the quality of the analysis behind it.
- Did we have enough data?
- Did we identify the right pattern?
- Did we choose the most appropriate next step?
Those things absolutely matter.
But if we're measuring success by business outcomes instead of technical capability, I'd argue a smart decision must do one more thing.
It must drive the action that produces the result.
After all, a decision to request additional claim documentation isn't valuable because the system recognized that information was missing.
It's valuable because the policyholder provides it. In a timely manner.
The decision itself isn't the outcome.
It's only the beginning of one.
Intelligence Creates Possibility
One thing I appreciate about where the insurance industry is heading is that we're moving beyond isolated AI use cases. Let’s say, in creating thought leadership blogs ;)
We're talking about connected data. Connected workflows. Connected decisions. Enterprise intelligence.
It’s like looking a giant human brain; all the neurons firing. Creating so many possibilities for action.
But all those neurons firing (the intelligence), telling you that your hand is on a hot stove, doesn’t do anything unless you move your hand (the action). And in the real world, understanding what should happen next isn't the same thing as making it happen.
There's one critical step left.
Helping a human confidently make that thing happen.
Where Communication Changes Everything
This is where communication quietly becomes one of the most strategic layers in the technology ecosystem. Not because it sends emails, or texts, or voice messages. But because it's the mechanism that translates intelligence into action.
It's where the policyholder discovers:
What happened > What they need to do > By when > and why it matters
It's also where they decide how they feel about doing it.
Confident. Overwhelmed. Reassured. Frustrated. Motivated. Ignored.
Those emotions influence whether the "next best action" actually becomes...the next action.
The Gap Between Decision and Outcome
If you've read the previous blogs in this series, you've probably noticed a recurring theme.
A belief that technology doesn't create experiences alone. That experiences are created by a human’s collision with technology.
The outcomes, at the end of the day, are driven by the people.
And while AI is definitely exposing insurers to more possible decision points (faster), there's still a gap between a decision being made and an outcome being achieved.
That gap is often a conversation.
One that helps someone understand.
One that builds confidence.
One that creates trust.
One that makes the next step obvious.
One that ultimately gets something done.
The Frontier Opportunity
So, what is the new frontier, really? I mean, let’s look at it like a cowboy might (one because it’s coming up to Stampede, and two because that’s what I’m envisioning in my head right now).
My horse and I are standing on the edge of the “new frontier”.
And we step over the threshold.
We’re now in it (technically).
But there is so much more to discover.
Investing in AI is crossing the threshold. But the discovery doesn’t stop there.
It BEGINS there.
If what we’re really driving for with our AI usage is a specific outcome, let’s remember that outcomes happen when people take action.
Communication isn't simply another capability sitting beside AI. Or even just connected to it. It's one of the links in the chain that’s tied to AI creating value in the real world.
And while AI may decide what should happen next...how you communicate that (to the right people, at the right time, in the right channel) determines whether it actually does.