Artificial intelligence is becoming a standard technology in the re/insurance sector, especially in claims processing, according to a new report from Sollers Consulting.
The consulting firm’s research, which included interviews with representatives from 35 re/insurance companies in Europe and North America, found notable differences in how prepared companies are to deploy AI.
The report notes that AI is already reshaping core functions in re/insurance, with claims processing, back-office efficiency, and customer experience identified as areas of greatest impact. Executives interviewed expect AI to also influence underwriting, prevention, and sales in the next three to five years.
For policyholders, the adoption of AI is expected to result in faster claims and underwriting decisions, clearer risk communication, and more personalized pricing.
The growing role of AI in the re/insurance sector is also reflected in recent investment patterns. Gallagher Re’s 2024 report found that insurtech funding totaled US$4.25 billion for the year, a 5.6% decline from 2023. However, AI-focused startups bucked this trend, raising more capital and gaining increased industry attention.
In the fourth quarter alone, AI-focused insurtechs accounted for 42.3% of all deals, with half of these transactions involving companies specializing in claims-related technology.
Large language models are now widely used among re/insurance companies. Some firms have introduced general AI tools for employees to test, reflecting the rapid pace of technological change.
However, the report highlights a need for improved governance to manage IT complexity and foster collaboration across projects. Notably, 26% of the surveyed companies lack a formal governance model for AI.
“Insurers that fail to establish governance structures to support AI transformation risk falling behind in a market that is rapidly moving towards AI, automation and predictive decision-making,” said Piotr Kondratowicz (pictured above), business architect at Sollers.
AI is already being used to streamline claims management in motor re/insurance, with 64% of companies implementing AI for tasks such as document deduplication and email triage. In contrast, underwriting processes remain less automated.
Data extraction is the most common use of AI, with 69% of companies either using or introducing the technology for this purpose. Chatbots are the next most common, at 60%. AI adoption in call center support remains limited, with only 38% acceptance.
“AI is primarily used to automate data capture, document processing and parts of the claims handling process,” Kondratowicz said. He added that the next three years will likely see significant expansion of AI into underwriting, pricing, and customer-facing areas, including product offerings and digital services.
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