Data analytics group EXL says artificial intelligence can “bend the cost curve” for insurers and help address rising premiums.

Australia and New Zealand head of insurance growth and ecosystems Abhi Bhola says affordability is partly shaped by how efficiently insurers operate, alongside factors such as climate risk and claims inflation.

“AI won’t eliminate premium pressure on its own, but it can help bend the cost curve over time,” he said. 

“Operational efficiency, alongside pricing and risk reform, needs to be part of the affordability conversation if Australia is to avoid a widening protection gap.”

Mr Bhola says EXL – which works with major insurers in Australia – has seen AI help clients “triage claims faster, scale during catastrophe events, and improve risk accuracy, all of which reduce cost volatility.

“AI and advanced analytics, when embedded into insurance workflows rather than bolted on, can materially reduce operating costs without compromising fairness or customer trust.”