Lack of AI Know-How in the Insurance Industry is Slowing Profits

Lack of AI Know-How in the Insurance Industry is Slowing Profits

The insurance industry is the least likely to consider itself “advanced” in AI, according to a recent report by EPAM Systems.

Despite rising AI investment across all business sectors, insurers are struggling to scale the technology, the data showed, citing data protection, security, and talent gaps as major hurdles. The insurance sector also has the highest share of beginners in AI.

“Most insurers have focused their AI investments to date on document intake processes, document interrogation and summarization, writing assistance and embedded chat copilots,” EPAM System’s Global Insurance Advisory Lead, Gail McGiffin, told PropertyCasualty360.

“These investments have primarily delivered proofs-of-concept that seem promising in terms of cost and time savings,” she added. “Yet, few have been operationalized within a business function to scale the efficiency benefits. While investments have crossed the insurance value chain, the greatest use case traction has been in underwriting, policy servicing and claims. What is still lacking is the use of AI and GenAI to improve the effectiveness of key decision-making activities in underwriting and claims, which will yield the greatest business impact in the areas of risk assessment and claim evaluation and improve profitability.”

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