To expedite recovery from an unstable business environment and future-proof the business, insurers have heavily invested in modernizing their IT estate. They have focused on enhancing operational capabilities for efficiency and productivity gains, adopting data-driven decision-making. Generative AI (GAI) promises insurers additional value extraction and accelerated modernization efforts. Although GAI can revolutionize core insurance functions, a well-thought-out, holistic adoption roadmap should start small, prove incremental business value, and scale up quickly. The starting point varies for different Property and Casualty (P&C) insurers based on industry headwinds’ impact and their technology estate’s maturity. Thus, insurers must prioritize mandates requiring urgent attention and those offering quick wins.
In the current market environment, claims serve as a logical starting point for most P&C carriers, particularly in personal lines. Implementing GAI capabilities in this area allows for testing with minimal investment and disruption to live claims, making it an ideal starting place. Moreover, it offers major cost centers, such as claims organizations, an opportunity for efficiency gains in the near term, improved claims accuracy, and envisioning a complete reimagination of the claims value chain over the long term.
In this viewpoint, we explore the need and potential impact of GAI across insurance core operations.
Scope
- Industry: insurance
- Geography: global
Contents
In this viewpoint, we:
- Explore evolving market sentiment and priorities for P&C insurers
- Discuss the increasing interest and investment in GAI as the next frontier
- Identify claims operations as a logical starting point for P&C insurers’ GAI adoption journey
- Provide a potential roadmap and key considerations for GAI adoption within claims
Membership (s)
Artificial Intelligence (AI)
Insurance Information Technology
Sourcing and Vendor Management
