AI use expands beyond underwriting
Insurers’ use of artificial intelligence is growing fastest outside the leading areas of underwriting and risk profiling, consultant GlobalData says.
Underwriting innovation has slowed due to challenges with regulation, data quality and fairness in risk models. But other areas – particularly customer service – have picked up, according to analyst Charlie Hutcherson, who says insurers are expanding AI use cases more broadly.
“While underwriting and risk profiling still leads in terms of AI’s perceived value, the shift we are seeing highlights a more mature and diversified approach,” he said.
“Insurers are realising that AI has transformative potential beyond traditional areas.
“To stay ahead, insurers must take a holistic view of AI deployment across the value chain. That means not just focusing on efficiency but also ensuring fairness, transparency and compliance – particularly as regulation tightens.
“Those that can strike this balance will be best positioned to build long-term trust and value.”
AI-powered automation is enabling more accurate responses and higher customer satisfaction rates, and is influencing product development as insurers focus on trend analysis, coverage gap identification and speed to market.
GlobalData says 46% of respondents to a recent poll identified underwriting and risk profiling as the area most positively affected by AI, followed by claims management at 20% and customer service on 18%. Product development was flagged by 7% of respondents.