The FintechOS report, "
Despite the overall more positive perception of GAI, the report reveals that 73% of insurance executives expect that GAI will eventually take their jobs. Of these respondents, 63% believe that GAI will result in job losses – most believe that the figure could go up to as much as 20% over the next three years.
"GAI is a terrain marked by both excitement and apprehension, and our study explores the polarized sentiment that surrounds this groundbreaking technology. While opinions within the insurance industry are deeply divided, there is one common consensus: the expectation that GAI will boost revenues but inevitably reshape the workforce and displace jobs," said Teodor Blidarus, co-Founder and CEO at FintechOS, in a press release statement.
According to the survey, two-thirds of insurance executives anticipate GAI to boost revenues by 10% to 30% within the next three years.
"Every insurance company has started its GAI journey and it's imperative to take the first step – even if it's a small one – to avoid being left behind. Only by starting the journey now and understanding the implications can we mitigate the risks of GAI and better reap the rewards," Blidarus said.
A majority of survey respondents, 64% of the insurance sector, are already using various forms of AI.Though GAI is employed mostly for customer service inquiries, about 25% are investing in the research and nearly 22% in the implementation of using the technology for new business queries. A third, 36%, of US insurance organizations are investing between $2 million and $5 million into GAI, and 26% are investing anywhere between $5 million and $10 million.
The top concern for insurers that view GAI as "foe" lies in the risks associated with the ethical implications of the technology, namely with discrimination and bias, as almost 25% expressed this fear. Respondents also share some concerns with AI's potential to lie, the lack of regulation for the technology and the possibility of inaccurate data being provided.
As for the current state of GAI in insurance, 28% of U.S. insurance organizations believe that GAI will improve lending automation, 26% anticipate that market research and data will improve the most and 25% said that GAI may drastically improve employee upskilling.
As more insurance organizations employ some form of GAI, most respondents agree that the right tech stack is necessary to capitalize on the technology and push their GAI initiatives forward. The type of technology varies, however, as 23% of respondents highlighted the importance of open data models, 23% replied with the need for substantial investments in GAI technology itself, 23% identified integration with a third-party solution and 22% emphasized the importance of preparing a staff with the proper skills.
