Insurance executives are aware of the benefits of introducing artificial intelligence and machine learning technology into workflows but only 43% of underwriters trust and regularly accept automated recommendations, according to the
Sixty-two percent of executives see AI and ML elevating underwriting quality and reducing fraud.
Adam Denninger, global insurance industry leader at Capgemini, said in a statement:
"Today's insurer is operating in one of the most precarious environments in recent memory. The industry must react to this volatility by rethinking the underwriting rule book. It requires shifting away from legacy models by modernizing core systems and deploying advanced technologies that drive better outcomes and transparency. Embracing AI-driven insights and automation is crucial for the industry to drive a competitive path towards underwriting profitability that adapts to evolving risk dynamics and policyholder behaviors."
The report includes information from the 2024 Global Insurance Voice of the Customer Survey, the 2024 Global Insurance Executives' Survey and the 2024 Global Insurance Underwriters' Survey.
While executives may want more
A majority, 83%, of insurance executives believe predictive models are critical for underwriting. Only 27% say their firm has advanced capabilities, according to the report. Forty-nine percent of underwriters say they value drone image data but few carriers are equipped to analyze them. Half of underwriters also want real-time data from connected devices but only 12% of insurers can capture that effectively.
Additionally, over half of policyholders, globally, are concerned over the amount of personal information collected by insurers.
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