Industry insiders view a lack of expertise within their insurance company as the biggest challenge to implementing AI technology, according to a GlobalData poll. This highlights that while AI has the potential to transform the insurance industry, insurers need to prioritise talent acquisition and upskilling efforts to build the necessary expertise for AI integration.
According to a poll conducted by GlobalData on Verdict Media platforms, which garnered over 120 responses from industry insiders, the primary challenge insurers face in implementing AI technology is a lack of expertise within their insurance company, accounting for 24.4% of concerns. This is followed by a lack of understanding among customers, cited by 21.3% of respondents. Additionally, 17.3% believe that AI is not yet ready for widespread use within the insurance sector, and 13.4% point to a lack of customer trust as a significant hurdle.
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Insurers can address these challenges by investing in AI education and training programmes for their workforce. This includes upskilling existing employees through specialised courses in AI, data analytics, and machine learning. Partnering with universities and technology providers can help develop tailored training programmes, ensuring that employees gain both theoretical knowledge and practical experience in AI applications.
To bridge the customer knowledge gap and build trust, insurers should focus on transparency and clear communication regarding AI-driven decision-making. Many customers may be hesitant to trust AI-based claims assessments or risk evaluations due to a lack of understanding of how these systems work. By implementing explainable AI frameworks, insurers can provide clear, interpretable insights into how AI models reach decisions. Educational campaigns and customer engagement initiatives can further help demystify AI processes, reassuring policyholders that AI enhances fairness, efficiency, and accuracy rather than replacing human judgment entirely.
By addressing these challenges through a combination of workforce development, customer education, and strategic partnerships, insurers can successfully integrate AI into their operations and unlock its full potential to enhance efficiency, accuracy, and customer experience.
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