In its latest ad, State Farm champions its human element while acknowledging new insuretech startups using A.I. and machine learning in lieu of agents.
The ad features NBA Allstars Chris Paul and James Harden, along with a State Farm agent next to a car with a flat tire. A robot insurance agent from the fictitious company InsuroBotz.biz approaches the trio saying “I’ll take care of it.” The NBA stars ridicule the robot, each taunting his robotic facial features before the robot finally malfunctions, water shooting out of his eyes while crying “I have compassion.”
Compassion is State Farm’s industry angle as it sees the ascendency of more data backed AI insuretech companies. Several of these companies have made traction of the the last few years--Lemonaide, Insurify and Insurmi to name a few. Generally speaking, the insuretech companies offer streamlined enrollment, no middleman and automated claims process among other features.
The industry as a whole seems to be at an interesting crossroads of tradition and technology, each with their own audiences. Many insurance customers prefer the human touch provided by agents. Others would prefer more tech in their insurance, including computer generated insurance advice, chatbots, automated claims and processes and telematics. None however, would prefer a malfunctioning agent with water shooting out of his eyes.