Though we are insured with an excellent insurance carrier, at times I like to get a quote for our home and auto coverage. As a retired commercial and personal lines insurance adjuster, I am somewhat familiar with coverage exposures and coverages. Today we discuss a personal experience with AI in insurance and some key information on homeowner’s insurance that surprised me and that might help you.
Today I spoke with an AM Best A+ rated carrier who spent two hours interviewing us about all auto and home insurance needs. I had explained early in discussion that we have a two-car detached garage with storage area inside for tools.
Finalizing the discussion the insurance sales rep said, “You must know that one great benefit of this coverage is that we cover your refrigerator if you have a power loss. Any spoiled food is covered!”
“But we have two refrigerators and a freezer.”
“They are all covered!”
“Did you hear that, Bunnie?!” smiling at my wife. “Our food is protected!”
“And, finally, your detached garage is fully insured under the policy for XYZ percent. Are you ready for the final quote to put coverage in force?”
“So, what is the dollar coverage limit for our detached garage for XYZ percent?”
“That would be $29,000 total for rebuild purposes if needed. We offer no other options to increase detached garage coverage.”
This is now about 1 hour 58 minutes into the discussion. The entire conversation was recorded by the insurance carrier’s AI.
“I’m sorry.” I apologized, “We will not be able to do business with you. I explained to you early that we had a detached garage, and you waited almost two hours to explain this policy weakness to us. This would put us in a position of not being able to rebuild the detached garage should there be large loss.”
The AI detected the customer’s increased respiration with rise in vocal pitch, as the AI’s facial recognition scan alerts on the agent’s drop in friendliness. AI schedules agent for 2 hour virtual “Friendly Class & Happy Closings” the next morning.
The agent followed a carefully designed script to overcome policy weaknesses and time the sales process to benefit the insurance company (within allowable state insurance consumer laws). The proposed customer has to accept the script and the terms offered by the carrier and selected coverage selections available by the carrier. Years ago, the used car salesperson kept you in the office to wear you down until, finally, “OK, I’ll take the car … just to get out of here!”
You may say, “Jim, you can’t get any more than XYZ percent!”
Everything depends on the terms of your policy. If they don’t offer it; go somewhere else.
Before you say, “Jim, you were too hard on this insurance agent!,” a computerized voice followed the discussion with the agent, “Please, tell us how we did.”
Robot: “Did the representative answer all your questions and meet all your needs? Press 1 to 5, with 1 being extremely poor.” {Robot fails to mention that the agent works 10 hours a day, six days a week, repeating same script while saddled with punishing sales quotas.)
All the questions asked: What did the agent do wrong?
The final question: “After the tone tell us, ‘What did the insurance company do wrong and what could we do better?'” Two seconds after the tone, the robot disconnects the call without giving time to leave feedback for the company.
The Moral: Unchecked AI will further manipulate a company’s scheme to short the customer and heap workloads on the employee.
The discussion with the insurance agent was a true story. Computer live detection of agent’s “friendliness” exists now. The Company Robot Survey paraphrased and adapted the same day when the insurance AI greeted me with, “Thank you for calling! So I can help you … how much money do you make?” Yet the AI failed to understand my simple response, “Get lost!”
While following link does not endorse Merlin Law Group, they raise excellent points: Detached Garage Disaster: Why Your Home Insurance Might Not Protect You :
Thanks for listening. Considering what’s happening in Georgia and Florida, stay alert, my friends!
Oh, before you go, what if a spouse used an AI “friendly emotion detector” on her husband, with Alexa notification?
Until Then … Stay Stirred,
Your Host, Jim Butler
Discussion:
- Imagine an AI that is technically correct but people wrong? Describe an experience when you’ve experience such a scenario? How can you make a moral decision to lay aside your technical correctness for being people right? Describe such a scenario?
- How would the insurance industry change if the AI knows your entire insurance and claims history and sends you live streamed top three insurance portfolios to protect you, considering your claim history, before you call the insurance company?
- Consider a “friendly emotion detector” AI deployed while you are shopping for your favorite _____ (fill in blank). In an eyeblink it gathered your entire shopping history and credit score while monitoring your shopper’s “tell,” like a poker player who licks his lips if he holds three aces. Now it is only presents to you ads that spike your dopamine real time. How might this affect advertising to children? Rather than selling something you like, how would AI pitch you for things it knows you want before you do? What if you never had to shop because the AI delivered what you wanted as you aged and within your budget? Would this make you the AI’s canary?
