More than half of UK and US insurers using generative AI technologies
Data released today by insurance claims automation provider Sprout.ai has found that 59% of insurers with over 100 employees are already using generative AI in their organisation. The findings refute the widespread assumption that insurers are slow to adopt new technologies. AI within the insurance industry alone is forecast to be worth $35.77 billion by 2030.
The research surveyed more than 100 UK and US based insurers on their attitudes towards generative AI and found that the biggest opportunities for the technology lie in marketing and claims (Both 54%), closely followed by administration (47%) and underwriting (46%). When asked which benefits they felt their organisation could see from implementing AI in their organisation, over half (56%) said it could save money and stimulate business growth.
Improving the human experience for both employees and customers emerged as another key theme and suggests that a human-first approach that elevates, rather than removes, people from the organisation is a priority for insurers. Enhancing staff productivity (61%) and providing a better customer experience (48%) both ranked highly as the areas that stand to benefit from generative AI if implemented in their organisation.
However, the implementation of generative AI does not come without significant barriers to overcome. Staff training was highlighted as the top concern by 47% of respondents and reinforces the importance of ensuring employees are comfortable with the tools and know how to use them to unlock widespread adoption. Interestingly, this was a notably higher concern for UK-based insurers (58%), versus those in the US (38%). For US-based insurers, cost was cited as the biggest barrier by 48% of respondents, though only 27% were concerned about seeing a return on investment.
Commenting on the findings, Roi Amir, CEO, Sprout.ai said: “There has been a lot of hype around generative AI but it is promising and exciting to see the insurance industry putting words into action. An innovation-friendly regulatory environment coupled with increasing customer and employee expectations have created the perfect conditions to implement generative AI. The insurers that embrace the technology and provide the right training for it stand to reap huge financial and operational rewards.”
The research was conducted between 6th April - 20th April 2023 among 126 US and UK Insurance professionals working in companies with over 100 employees.
