Experts Predict Significant Culture Change in Insurance Industry Due to AI
Industry stakeholders anticipate that artificial intelligence (AI) will transform the global insurance business model by significantly altering the industry’s skill base and enabling more predictive and less reactive risk management and claims processes.
“When we talk about transformation, we could say lots of things around automation,” stated Troy Dehmann, Beazley’s chief operating officer, during a recent Financial Times webinar. “I think the biggest transformation that you’re going through is around skills.” Dehmann emphasized that every insurance role will be affected in some way by Agentic AI and Generative AI (GenAI) over the next five years.
Co-panellist Michael Föhner, Swiss Re’s global head of data and AI governance, noted that the speed at which the industry needs to adapt is “rather frightening.” He stressed the need for “upskilling” to validate AI-driven results, comparing AI use to driving a fast car: “You have to be upskilled to manage this fast machine.”
Mohammad Khan, partner and head of general insurance at PwC UK, predicted a cultural shift from reactive processing to continuous risk and claims management. “I think we’ll move far more to being predictive because the technology will allow us to do that,” he said.
Swiss Re is currently utilizing GenAI to process unstructured data efficiently, particularly in underwriting and claims management. Föhner mentioned that their AI-powered underwriting assistant, Life Guide Scout, helps underwriters by answering questions in natural language about risk assessment.
The relationship between underwriters and AI was described by Dehmann as akin to “sparring partners,” with AI acting as a powerful assistant rather than making independent decisions.
Khan provided a clear definition of Agentic AI, distinguishing it from GenAI. While GenAI creates new content based on learned patterns, Agentic AI possesses agency, acting independently and making decisions to achieve objectives.
As the insurance industry continues to adopt GenAI and Agentic AI, professionals are grappling with challenges and concerns regarding implementation and governance.
