The impact of DeepSeek in the insurance sector is profound, as various firms are rapidly integrating this technology into their operationsAmidst the growing wave of digital transformation, major insurance organizations such as Xinhua Insurance, PICC Property and Casualty, and Taiping Life have announced their adoption of the DeepSeek modelThis shift is centered around enhancing efficiency and optimizing services, aiming to streamline operations within the industryDeepSeek, a notable homegrown AI model, is acting as a catalyst for the much-needed evolution of the insurance industry.

With an emphasis on digital transformation, the DeepSeek model is leveraging its open-source characteristics and cost-effective advantages to provide differentiated support that empowers various industry playersLeading insurers, capitalizing on their prior technological investments and successes, are poised for an upgradeFor medium to small-sized enterprises, DeepSeek offers low-cost training benefits that allow for the amalgamation of local data with a comprehensive model, enabling the development of bespoke solutions and overcoming technological cost barriersThe expansion of DeepSeek’s applications could significantly elevate the digital maturity of the entire insurance sector.

As DeepSeek gains momentum within the industry, various firms are swiftly joining the fray, employing it across a range of operational scenarios including sales, claims, and researchFor instance, Xinhua Insurance was among the first to declare its integration, leveraging its Xinhua e-home app infrastructure to seamlessly incorporate DeepSeek's R1 and V3 model products, thus creating a personalized AI assistant capable of supporting diverse intelligent applications.

Following suit, companies like Peking University Founder Life, Taiping Life, and PICC Property and Casualty, as well as asset management firms such as PICC Assets and Taiping Assets, and brokerages like Taiji Huabao, are actively engaging with DeepSeek in order to harvest its benefits during this period of technological evolution

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Some institutions have discreetly begun testing the model internally, while others have indicated ongoing discussions and plans for application development.

Focusing on specific applications, Founder Life announced the launch of its intelligent sales assistant, "Fangling", on February 14. Initially, this assistant will unlock basic functions for “knowledge intelligent search”, serving as an intelligent marketing aide that provides comprehensive answers to agents covering fundamental insurance conceptsFuture enhancements will include knowledge training and systematic training for agents on how to utilize AI tools effectively.

In claims processing, PICC Property and Casualty is enhancing its operational efficiency by using DeepSeek to support automated quality checks for claims processing, accurately extracting essential information such as case timelines and locations of lossThe integration also enables smart practice sessions for claims personnel and offers practical suggestions for improving staff skills.

Additionally, in terms of investment research, PICC Assets has recently deployed the DeepSeek R1 model on-site and created an interactive application that is available to all staffExploration efforts are also underway to achieve deep integration between DeepSeek and existing systems, facilitating intelligent research report creation.

Taiping Assets has reached a similar milestone, having localized the DeepSeek-R1 model and ensured its compatibility with domestic operationsThis local deployment allows for services in areas such as data extraction, intelligent searches, and knowledge inquiries, providing industry trend analysis and local data insightsTheir next steps will involve further exploration of the model's capabilities, gradually applying it in fields like investment, operations, and risk management, ultimately advancing asset management towards an intelligent and information-driven process.

In light of DeepSeek’s open-source, low-cost features, the push towards digital advancement across the insurance industry is accelerating

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Beyond current implementations, insurance institutions have articulated further ambitious plansFor instance, Founder Life aims to evolve its intelligent assistant into a more versatile tool, with future applications expected to include AI practice partners and underwriting assistants, thereby establishing a comprehensive support system spanning all stages of business operations.

As insurers place their hopes in DeepSeek's ability to enhance the entire value chain, the model's capabilities have been clearly articulated: smart customer service and educational enhancements, automated underwriting and claims processing, data-driven product design and actuarial analysis, comprehensive customer lifecycle management, compliance and operational efficiencies, investment and asset management, alongside leveraging technical advantages in real-world applications.

However, the deployment is not a simple task, and the line of vision is not mere fantasyWith a concerted effort, insurance firms have been driving their digital transformation for years, and the successful application of DeepSeek is likely to accelerate these effortsMajor players in the sector are heavily investing in capabilities related to AI and model development, leveraging DeepSeek's robust open-source nature to reinforce their growth strategiesFor example, on February 18, PICC Property and Casualty announced it had integrated the full-scale DeepSeek model and has private deployment completed with domestic computing power, incorporating DeepSeek’s capabilities into their foundational models for tailored insurance services.

For smaller companies, DeepSeek’s low-cost training aspect allows for accelerated progress in their digital transformation journeys, merging local data with the model to create customized solutions that navigate previous cost barriersOverall, the industry’s digital maturity could stand to gain significantly from the integration of DeepSeek.

Lan Jie, the General Manager of the Smart Delivery Center at Yuankexin Huibao, noted, "Compared to traditional AI, DeepSeek showcases superior data handling capabilities and a higher level of intelligent reasoning

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It can analyze and predict client needs with greater accuracy, offering personalized insurance products and servicesFurthermore, DeepSeek’s self-learning capability allows it to efficiently manage complex insurance cases, rapidly adapting to market shifts and diverse customer needs." Such advantages position DeepSeek as a critical asset in improving operational efficiency and customer service quality for insurers.

However, Lan Jie's caution underscored the need for insurance companies to mind the significance of data security and privacy protection when implementing DeepSeekShe emphasized the necessity of encrypted data storage and transmission, compliance with relevant data protection regulations, and the importance of rigorous testing and validation of the model to ensure its accuracy and reliability.

On the ground, the discussion among front-line sales staff presents a different narrative concerning DeepSeek's integrationAs AI continues to mature, particularly with the emergence of models like ChatGPT, questions about AI potentially replacing insurance agents have been a hot topic of debate, and DeepSeek’s arrival has added further complexity to this dialogue.

One insurance broker from a leading intermediary organization shared, "I’ve utilized DeepSeek to generate tailored recommendations for customers based on their specific circumstances, producing content that is significantly more detailed and transparent than traditional AI outputsThe model’s thought process makes it easier for clients to grasp the necessity of various coverages and understand the distinctions between different product types." He highlights, however, that this is merely the first step in the sales process; often, clients struggle to make further comparisons or decisions based solely on AI's generalized advice.

Additionally, the 'hallucinations' that can arise from AI models, including DeepSeek, necessitate that users verify information against multiple sources, which becomes increasingly complex in light of the professional barriers present in insurance products and intricate policy details.

One business leader at an insurance brokerage remarked, "Insurance sales fundamentally rely on people, grounded in trust and understanding." The diversity of client needs and complexity of policy terms require agents to exert their experience and comprehensive knowledge of both clients and products to facilitate well-informed decisions; a task that’s far from achievable through simple querying.

Nonetheless, as one brokerage division business leader aptly concluded, “The assistance from DeepSeek significantly outweighs any threat.” Regardless of whether it poses a risk to traditional roles, a consensus among field operators emerges: embracing DeepSeek is a necessary step forward.

Feedback from frontline agents underscores how DeepSeek can aid in generating foundational suggestions and plans for clients, allowing them to refine these insights for improved efficiency

This includes providing marketing advice, content creation, and freeing up agents' time to focus more on offering specialized risk management solutions.

As the trajectory of AI remains unpredictable, the extent of transformation within the insurance sector through the utilization of AI technologies like DeepSeek awaits the unfolding of time to reveal.