Unlocking AI’s Potential in Insurance: A Strategic Perspective
Unlocking AI’s Potential
in Insurance: A Strategic Perspective
CATEGORY
Infographic, Insurance, Artificial Intelligence, Generative AI
Gail McGiffin
Managing Director & Global Insurance Lead, EPAM
Eric Fenton
Principal, Business Consulting, EPAM
Steve Tesler
Practice Lead, Insurance Consulting, EPAM
At the end of 2024, EPAM conducted a comprehensive survey with more than 7,300 professionals to learn how executives as well as engineers and developers viewed the present and future of AI.
Our work covered multiple industries, including over 900 insurance professionals across nine countries and four continents.
The Current State of Al in Insurance
43% of all the companies we surveyed plan to hire AI-related roles in 2025
77% of insurance companies describe themselves as either “Competent” or “Advanced” in regard to AI
34% of insurance companies have already piloted new AI products or features with customers
41% of insurance companies have already seen operational and productivity improvements from AI
KEY INSIGHT
The race is on, and companies are already fast at work implementing and experimenting with AI use cases. But with so many seemingly confident about their ability to utilize AI, it begs the question — are companies really getting the most out of these new tools?
Critical Factors for Investment
Insurance companies plan to increase AI-related spending in 2025, but smart organizations are tackling specific problems to improve implementation success.
35% of respondents cite data security and data quality as top data concerns
22% of respondents cite cloud security as the top factor in cloud investment
30% of respondents cite unauthorized access to data and DDOS attacks as their top security concerns
KEY INSIGHT
Strategic investment in AI is critical to staying competitive, but organizations also need to target specific areas of concern. Solving these issues first is critical in order to be able to move forward with AI implementation and adoption.
Leadership & Talent
A staggering 93% of insurance companies either have or plan to hire a CAIO
Most companies agree that at least 45% of their current employees will need AI upskilling, and 44% of companies surveyed believe that between 50-100% of their current employees will need retraining for AI skills within the next 18 months.
KEY INSIGHT
The success of any AI strategy depends on multiple factors, from leadership and roadmapping to execution. Carriers are preparing the foundation for successful AI implementation, but are they truly ready for all the challenges it presents?
Security & Technology
37% of insurance respondents worry that their cloud infrastructure and security programs lack the sophistication and maturity necessary for AI transformation
Only 15% think their company lacks a single source of truth for data
KEY INSIGHT
Effective governance and robust security are foundational for AI success, and though companies are underway, concerns remain. As data and AI systems become more complex, so too must a company’s security capabilities as new threats emerge.
The Path Forward
Currently, the industry seems to be primarily focusing on short-term wins. However, the key to AI success in the long term is not just about small-scale optimization. Are companies really prepared to scale their solutions, both internally and externally?
Like other sectors and industries, carriers globally have already been laying the groundwork for adoption and implementation or are already exploring ways to improve efficiency with AI. What remains to be seen is who will be the first to start driving the real business wins with improved effectiveness.
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