The adoption of AI in the insurance sector: risks and opportunities
Differences in AI implementation and governance could lead to divergent outcomes for insurers.
Quick Look
Adoption of AI in the insurance industry is widespread, but differences in governance and data quality could create performance gaps and operational risks between companies.
AI-generated summary
Why It Matters
Artificial intelligence is finding increasing diffusion in the insurance sector for various operational functions.
The adoption of AI is now widespread in the insurance sector, but differences in implementation, maturity, governance and execution could lead to divergent results in terms of performance and credit quality.
Governance, data availability and quality, and risk controls could increasingly distinguish insurers capable of transforming AI investments into lasting business value from those most exposed to operational, regulatory and reputational risks.
AI is increasingly being used to improve customer experience, underwriting and risk management, as well as claims management, with benefits emerging earlier and more clearly than financial benefits.
Open Questions
- Which insurance companies will adopt the best governance standards?
- How will European regulation affect the use of AI?
