AI-generated complaints create new headaches for insurers

South Korean insurers are facing a surge of AI-generated customer complaints that cite nonexistent laws or contain telltale signs of chatbot use, such as asterisks from ChatGPT. The trend is creating new verification burdens for claims handlers as consumers increasingly use generative AI tools to draft grievances.

A recent customer complaint filed with one of the top three life insurers in Korea appeared convincing at first glance. It cited what seemed to be relevant laws and argued that the company had misinterpreted them. There was one problem: The law did not exist. "Sometimes customers cite statutes that simply aren't real," a company official said. "Other times the law itself exists, but the interpretation is completely off. We're seeing more grievances that sound plausible on the surface but don't hold up under scrutiny." At another big-name non-life insurance firm, claims handlers encountered a different telltale sign of artificial intelligence AI . One submission still contained the asterisks that ChatGPT typically uses for emphasis. "People can put a few details into ChatGPT and ask it to draft a complaint for them. We are definitely seeing cases like that," an official at the insurance firm said. These episodes illustrate a growing challenge for the country's insurance sector as more consumers turn to generative AI tools to draft complaints and appeals. While chatbots can help explain com