AM Best Survey Reveals Rapid AI Adoption in Insurance Despite Structural Barriers
AM Best, a global credit rating agency specializing in the insurance sector, conducted a survey of over 150 carriers and managing general agents to assess the impact of artificial intelligence. The findings indicate that nearly 60% of respondents expect AI to significantly reshape their business models within one to three years. Currently, 41% of organizations are actively using AI in core functions, with two-thirds planning to increase investment in the next 12 to 24 months. Key drivers include enhancing employee productivity, reducing operational costs, and improving underwriting processes. However, significant obstacles remain, particularly regarding data readiness, cybersecurity, privacy concerns, and the integration of AI with outdated legacy systems. Experts note that poor data quality and fragmented systems can lead to unreliable AI outputs. While 63% of firms reported modest gains in workforce productivity, most believe AI cannot yet fully replicate roles requiring critical judgment. Consequently, many insurers anticipate reassigning staff to higher-value functions rather than reducing headcount, acknowledging that measurable return on investment may take years to materialize due to the technology's nascent stage.
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AM Best Survey Reveals Rapid AI Adoption in Insurance Despite Structural Barriers
AM Best, a global credit rating agency specializing in the insurance sector, conducted a survey of over 150 carriers and managing general agents to assess the impact of artificial intelligence. The findings indicate that nearly 60% of respondents expect AI to significantly reshape their business models within one to three years. Currently, 41% of organizations are actively using AI in core functions, with two-thirds planning to increase investment in the next 12 to 24 months. Key drivers include enhancing employee productivity, reducing operational costs, and improving underwriting processes. However, significant obstacles remain, particularly regarding data readiness, cybersecurity, privacy concerns, and the integration of AI with outdated legacy systems. Experts note that poor data quality and fragmented systems can lead to unreliable AI outputs. While 63% of firms reported modest gains in workforce productivity, most believe AI cannot yet fully replicate roles requiring critical judgment. Consequently, many insurers anticipate reassigning staff to higher-value functions rather than reducing headcount, acknowledging that measurable return on investment may take years to materialize due to the technology's nascent stage.
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