Digital revolution: RAG and its implications in the insurance world

AI, as early as 2024, will mark a momentous turning point for the insurance industry, thanks to the introduction of Retrieval Augmented Generation (RAG)

This advanced artificial intelligence technology promises to revolutionize the way insurance companies interact with their customers, providing more efficient, personalized and accurate services. RAG represents a qualitative leap from traditional AI models, such as ChatGPT, which are known for their dialogue capabilities. The real innovation of RAG lies in its ability to access and integrate external data in real time. This allows AI systems to provide answers not only based on their 'digital brain' but enriched with up-to-date and relevant information from around the world. For the insurance industry, adoption of RAG will result in significant improvement in customer service and process automation. Insurance companies could integrate advanced language models with their databases, offering richer and more personalized digital experiences. RAG-based chatbots and virtual assistants will be able to provide detailed and specific information in real time, turning digital interactions into unique experiences for each stakeholder. Some of RAG's most innovative applications in the insurance industry include:- service personalization: RAG chatbots will be able to provide personalized responses based on specific policy details, increasing customer satisfaction and loyalty;- efficient claims management: with RAG, claims can be processed more quickly and accurately because the system can draw on a wide range of relevant data, speeding up response times and reducing errors;- up-to-date risk information: RAG systems will be able to access up-to-date data on natural events or other risks, enabling companies to provide proactive advice to customers on risk management.