Reinsurance Group of America’s (RGA) resident generative artificial intelligence (AI) expert, Jeff Heaton, unpacked recent developments in generative AI to provide readers of that company’s white papers with a discussion of the technology’s relevance to the industry, along with the company’s predictions for 2025.

Entitled GenAI in Insurance Update: Q1 2025, the update of recent technological advances this quarter focuses on Claude 3.5, which reportedly brings flexibility and cognitive understanding to tasks that require adaptability. (Existing robotic process automation excels more at streamlining structured, rule-based processes.) The article also looks at ChatGPT’s new real time search functionality with different information retrieval that Heaton says is more reliable – a game changer for those who require ChatGPT to search in real time and provide reliable source citations (a significant leap in utility). The 23-year RGA technology veteran today leads the enterprise-level adoption of GenAI at the reinsurer. 

Several benefits for insurers 

For insurers, he says this new search functionality brings several benefits, including the ability to stay informed about the latest developments in insurance regulation, market trends and customer expectations. “For example, an underwriter might quickly pull up the latest data on actuarial tables of changes in state-specific laws without leaving the ChatGPT interface,” he writes. “Additionally, the ability to cite sources adds a crucial layer of transparency. Insurers can use ChatGPT to draft policy explanations, market analyses or business presentations, knowing the data can be verified.” 

Quantum computing 

The article also discusses Willow, Google’s new quantum computing chip with a 105-qubit processor. The chip reportedly demonstrated its power by solving a benchmark problem in under five minutes, “a task that would take the fastest classical supercomputers a length of time far exceeding the age of the universe,” they write. “This milestone highlights both the potential and the growing maturity of quantum computing technology.” Heaton adds this development brings quantum computing closer to practical application in a range of fields, including insurance.

Ethical and regulatory considerations 

He says in 2025, the rapid integration of technologies will bring infrastructure and energy challenges. Alongside technical hurdles, he adds that ethical and regulatory considerations will take centre stage during the year. “Robust AI governance frameworks will be essential to address issues like bias and transparency, with governments and companies working to balance innovation with regulatory compliance.” 

Finally, Heaton concludes saying companies will need to focus on upskilling employees and focusing on emerging roles. “As AI continues to evolve, it will necessitate thoughtful planning to harness its potential responsibly while mitigating risks associated with its widespread adoption,” he writes. “While it is difficult to predict exactly how far this evolution will advance in 2025, clear, thoughtful progress in all areas must proceed quickly to keep pace with technology.”