Ignoring AI Is Risky Business for Insurance CEOs rectangle

Related Expertise: Insurance Industry, Artificial Intelligence, Business Transformation

Ignoring AI Is Risky Business for Insurance CEOs

By Iman KarimiCharles-Antoine WallaertSilvio Palumbo, and Rae Chen(陈蕾)

AI is transforming business and society, placing insurance CEOs at a crossroads. They must either make a serious commitment to AI or risk losing the ability to compete with their peers. To thrive in the insurance marketplace of the future, insurance company CEOs must act quickly and begin the long-term, resource-intensive process of building AI infrastructure. Here’s what CEOs should keep in mind:

· For decades, the industry has depended on historical data to measure risk and set prices. But the key to success has now become the acquisition of real-time customer data, something insurance companies typically lack.

· Companies everywhere are combining advanced analytics and AI to create competitive advantage. So far, insurance companies have been slow to join organizations in other industries—and upstarts in their own industry—in the move to more data-driven forms of operating and decision making.

· CEOs must pair an effort to increase customer data with a fast and firm commitment to long-term investments in AI at scale. With a strong commitment to AI, these forward-thinking insurers can vastly improve their ability to optimize sales, distribution, pricing, and claims management—and boost the bottom line.

To learn more about the challenges and opportunities facing the insurance industry, read the article here.

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