As AI accelerates, financial services and insurance businesses are undergoing a transformative shift with Agentic AI. Gartner predicts that at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028. 33% of enterprise software applications will include agentic AI by 2028.
Agentic AI is bringing a new dimension to financial services. Unlike other AI models that respond to specific human prompts, Agentic AI has capabilities to cater to several financial services and insurance (FSI) challenges. It is an autonomous system that independently perceives, reasons, learns, and takes actions without constant human direction. Agentic AI helps in redefining financial operations with higher efficiency.
In this blog, we explore the key challenges in the financial services and insurance sectors and how Agentic AI helps to address them. Followed by Kasmo’s advanced solutions that help financial firms in fraud detection, analyzing vast documents, and SQL query generation to enhance their operational capabilities and deliver secure services.
Challenges in Financial Services and Insurance
Meet Customer Expectations
The major challenge is to meet changing customer behavior. Consumers want all processes to be done faster, an omnichannel experience, and easier. They also expect businesses in FS&I to introduce more customer-centric loan types, insurance plans, and hassle-free digital payment services.
Operate More Securely
In finance, insurance, and banking businesses, security is a top priority to protect sensitive customer data and brand reputation. Today, financial services businesses and insurance stakeholders are being held accountable to strengthen security.
Data Silos
Data silos in Financial Services and Insurance (FSI) are a common problem, caused by scattered data across different departments in the system. This contributes to inefficiencies in operations, increased fraud risks, and affects customer experience. Data silos usually occur in businesses following legacy systems, as they do not have a unified customer view, task automation, or robust security methods.
Cyberthreats
Cyberattacks, data breaches, phishing, etc., are increasing as banks and insurance companies are implementing more digitized technologies. To avoid these risks and to protect customer data, financial businesses need to evolve cyberthreat monitoring, data control, identity and access governance, and privacy measures.
Regulatory Complexity
For financial services and insurance firms, regulatory complexity is a serious challenge that has caused spiraling costs, operational stress, etc. They will also have to navigate stringent compliance and reporting standards; this results in heavy manual workloads.
What is Agentic AI in Financial Services?
AI agents in financial services are autonomous software programs with the ability to analyze data and perform actions to achieve goals without the intervention of humans. This equips financial institutions and market participants to expand opportunities to streamline workflows, increase compliance, and deliver secure customer service.
What is Agentic AI in Insurance?
AI agents in insurance act as proactive specialists to handle specific insurance tasks, advancing beyond automation, taking data-driven decisions, improving accuracy, and assessing compliance risk. These AI agents work across the insurance value chain, helping in underwriting, personalized policy recommendations, fraud prevention, enhancing efficiency, and improving customer experience.
Benefits of Agentic AI in Financial Services and Insurance
Improved Productivity in Financial Services and Insurance
AI agents can execute complex workflows by understanding human-entered prompts. Agentic AI in finance helps to increase productivity greatly, as it can automate many of the labor-intensive and manual efforts for monitoring and fraud detection. Avoiding repetitive activities that take hours of oversight, which can be done easily with agentic AI.
Higher Accuracy and Cost Saving
AI agents help to reduce human mistakes while increasing accuracy, dependability, and scalability. Using these AI agents to complete repetitive tasks, like processing Know Your Customer (KYC) documents, processing claims, verifying documents, etc. Thus, helps to reduce operational costs and foster innovation.
Enhanced Customer Experience
Agentic AI and AI chatbots have capabilities to provide instant 24/7 support for self-service. Here, customers can obtain instant responses to their queries, as well as personalized policy recommendations at any time. This, in turn, enhances customer engagement and overall customer satisfaction.
Fraud Prevention
AI agents help prevent fraud in real-time by continuously analyzing financial transactions to find erratic, suspicious, or otherwise unusual patterns. Insurance AI agents use pattern recognition systems to detect fraudulent activities and prevent their occurrence. Thus, it helps to save huge costs and maintain brand reputation.
Agentic AI Offers Adaptability
Fraudsters or scammers will always find new ways to get around a security or regulatory authority’s capability to detect an unsafe transaction. Use of AI in finance helps to quickly adapt to these changing concerns and can reconfigure its parameters and invent new types of detections in real time. Thus, it helps businesses to minimize the greatest harm from the transaction.
Kasmo Solutions for Financial Services and Insurance
Kasmo offers different solutions that are built on the Snowflake platform for financial services and insurance firms. From fraud detection models to chatbots for SQL queries, they help to gain operational excellence and drive sustainable growth. Some of the key solutions include:
Fraud Detection Model
Insurance companies usually face challenges in detecting fraudulent claims, as they include higher manual interpretation and human error. Statistically, it is even more difficult for executives to detect geographic fraud patterns while still treating claims.
Kasmo’s “Fraud Detection Model,” built on Snowflake’s Python environment, is effective in data analysis and predictions. It can detect anomalies in real-time by using integrated machine learning systems. This model is efficient for developing a geographic view for fraud mapping, loss amounts by interpreters, and visibility to executive-level fraud behavior. Thus, helping financial and insurance businesses to easily detect fraudulent activities and take robust measures to mitigate them.
Olaf – RAG-based Chatbot Solution
Financial services and insurance firms have difficulty in manually verifying and identifying information from large documents. This process is time-intensive and causes human errors. Creating effective and actionable knowledge from unstructured information from diverse sources is essential. Ingesting data and consolidating are resource-intensive and open to error and require expertise and advanced data analytics processes.
Olaf, a RAG-based chatbot solution, is effective in handling unstructured, semi-structured, and structured data. It supports queries from the user’s preferred language and processes data to provide relevant responses. Analyze queries and fetch accurate information for documents to provide real-time automated responses to users. Thus, it helps financial businesses to speed up document verification or information retrieval and offer better customer service.
Nimble Search
Insurance and other organizations face challenges in integrating heterogeneous data from different sources with varying data formats. This increases the need for technical capacity to resort to manual processes for data ingestion, consolidation, and query. It is time-consuming and error-prone due to the lack of expertise in SQL.
Kasmo’s Nimble search can easily cater to this challenge using Gen AI and automated SQL generation. Optimizes the data indexing and retrieval based on metadata from the ingested document. AI in insurance enables natural language query processes for data mapping to generate SQL queries in real-time automatically.
Conclusion
Agentic AI is rapidly transforming how the financial services and insurance sectors operate by unlocking new operational efficiencies, preventing fraud, enhancing productivity, and improving customer experience. Snowflake has a crucial role in building a secure and sustainable future for finance and insurance companies. As a Snowflake Premier Partner, Kasmo has advanced solutions to cater to major challenges in the finance sector. Kasmo supports your financial and insurance business in the identification of suspicious activities, addressing any regulatory issues, and other operational inefficiencies.
