A GlobalData poll reveals that most insurance insiders believe AI has not met expectations yet, but they remain optimistic about its future potential. This anticipation is fueled by AI’s promise to transform underwriting, claims processing, and fraud detection, offering insurers the chance to boost efficiency and deliver more personalised services as the technology advances.
GlobalData’s poll run on Verdict Media sites in Q3 2024 found that the majority of insurance insiders (60.2%) believe AI has not yet met expectations but think it will eventually. However, 29.6% remain sceptical, doubting that AI will ever live up to the hype, while only 10.2% feel AI has already met the industry’s expectations.
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The optimism held by the majority of insurance insiders reflects the belief that AI’s development is still in the early stages. Many within the industry see the potential for AI to become a driving force in transforming core functions, such as the automation of claims processing and underwriting decisions. The ability to handle large volumes of data in real time and provide insights based on patterns that human analysts might miss is seen as a way to significantly streamline operations and reduce errors. Insurers are also keen on AI’s potential to offer more customized policies by leveraging data analytics, which can help tailor coverage more precisely to individual customer needs.
One key issue is the integration of AI into legacy systems, which are often outdated and difficult to modernise. There are also concerns about data security and privacy, as AI systems require vast amounts of sensitive information to function effectively. Moreover, the regulatory landscape around AI in insurance is still evolving, creating uncertainty about how the technology can be implemented within existing legal frameworks. These challenges contribute to doubts about whether AI will ever truly revolutionise the insurance industry in the way that many predict. The respondents who believe AI has already met expectations may represent those who have seen early successes in specific areas. For example, insurtech Lemonade has effectively used AI in customer service, using chatbots to handle routine inquiries and free up human agents for more complex tasks. Others have leveraged AI for fraud detection, where machine learning algorithms can quickly identify unusual patterns that might indicate fraudulent claims. However, these isolated successes are not yet widespread enough to convince the majority of the industry, signalling that while AI’s potential is clear, its full impact has yet to be realised on a larger scale.
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By GlobalData
