As an advocate for innovation who has been chronicling the power of digitization for nearly four decades, I sometimes get impatient with the pace of change in insurance. But I take comfort from the latest global survey by our friends and colleagues at the International Insurance Society.
In particular, I'm encouraged that 66% of those surveyed said artificial intelligence is their top technology priority, up from 17% just four years ago. I'd say the figure should be well north of 90%, but the latest results still show a remarkable increase in awareness of the possibilities presented by AI.
The emphasis on AI dovetails with other survey results on issues such as operational efficiency and talent, where AI can solve a lot of problems. More broadly, the survey supports my belief — or, at least, hope — that insurance can be a leader in adopting generative AI. Insurance obviously has major regulatory issues to deal with and owes stability to its customers, but, despite those constraints, insurance is a perfect fit for AI. At its core, it is a purely digital business, based on the masses of data that AI is perfectly designed to collect, analyze and act on.
The tendency is to look at technology revolutions as Big Bangs. For instance, we all learned in high school that James Watt's steam engine produced the Industrial Revolution. True enough, but what we (at least, I) missed is that Watt unveiled his key improvement in 1776 while the economic gains didn't start showing up until the 1820s, some 45 years later. A lot had to happen in the interim, including technology improvements, legal innovations and the invention of the factory. The same will be true with AI: We aren't going straight from invention to a change in life as we know it. But we've learned a lot over the past two-plus centuries and won't need 45 years this time> A lot of the reason is the sort of focus that the IIS survey of insurance executives reflects. So, kudos.
Let's look at some of the other interesting results.
The other super-high priority in the IIS survey was inflation. It was the top economic priority for the fourth consecutive year, with 63% of respondents listing it among their top three issues.
Concerns over an aging workforce almost doubled over the past year, as the industry faces a much-publicized wave of retirements. I think AI will play a major role in addressing the issue by capturing the knowledge that in years past would have simply walked out the door, by facilitating part-time work by those who would have otherwise retired, and even by attracting some younger, tech-hungry talent.
The survey found: "Beyond AI, the broader emphasis on technological advancement has also experienced significant growth. Forty-one percent of respondents now view technological advancement as a top social and environmental priority, continuing its rise from only 12% in 2021." AI will be key on this issue, too, as it will for operational efficiencies, which for the second year in a row top the list of operational priorities.
I encourage you to not only read the full version of the report available to the public but to also consider attending the IIS's Global Insurance Forum, which will explore the key issues in the report. This year, it's being held Oct. 26 and 27 near Zurich.
At the GIF, we at ITL will join our colleagues at the IIS and our sponsor, Lloyd's, in handing out the Global Innovation Awards. The finalists are:
Life/Health/Retirement Innovator of the Year
- Irish Life: AI Reasoning Assistant for Claims
A multimodal AI solution that automates document processing, accelerates claims assessments, and enhances accuracy, efficiency, and customer satisfaction during critical moments.
- RGA: MedScreen+: AI Solution That Strengthens Digital Underwriting
An AI- and OCR-powered underwriting solution that digitizes and standardizes health records, enabling faster, more accurate, and customer-friendly life insurance decisions while bridging the gap between centuries-old practices and the modern era.
Property/Casualty Innovator of the Year
- Gallagher: Global Data & Technology Capabilities
A data and analytics platform that simplifies complex industry insights into rates, losses, and limits, empowering clients, brokers, and partners with timely intelligence to make confident, informed decisions.
- Tawuniya: End-to-End Motor Claims Transformation
A fully digital motor claims platform that streamlines the entire journey from accident reporting to settlement, delivering faster processing, greater transparency, and higher customer satisfaction for over 1 million users annually.
Insurtech Predict & Prevent Innovator of the Year
AXA: Transforming Insurance at a Time of Polycrisis
A one-stop, AI-powered ecosystem that unites real-time catastrophe intelligence, cyber defense, risk tools, and training to help organizations predict, prevent, and respond to today’s connected crises.
- Tawuniya: Vitality & Drive: A Lifestyle-Based Ecosystem
Leveraging gamified insurance, health apps, and telematics to engage 500,000-plus users in safer driving and healthier living, cutting accidents by over 25% and reducing claims while building resilience.
They're all deserving. I'll be fascinated to see who wins.
Cheers,
Paul