AI is transforming the insurance industry
KPMG conducted an extensive research program, interviewing executive leaders across eight key global markets to understand the impact of AI on the insurance industry. The emergence of generative AI, along with the next wave of autonomous and agentic AI systems, is unlocking entirely new possibilities for innovation across the sector. Our research provides a detailed blueprint for insurance organizations to harness AI’s potential value.
Building trust is a major concern—and priority
“While the blend of generative and agentic AI is a perfect fit for the insurance sector, adoption and maturity among Belgian insurers remain low. Nine out of ten insurers recognize AI as a source of competitive advantage, and seven out of ten are increasing their AI budgets. Yet, the industry is held back by fundamental hurdles: the vast majority still lacks a full strategic AI vision, struggles with data availability and privacy, and offers little to no on-the-job AI training. To move beyond this state, leadership must address the foundational needs identified in the first phase of our Enable-Embed-Evolve model.”
Leadership goals for AI adoption focus heavily on operational gains rather than strategic value
How to realize value from your AI transformation journey
To address these challenges, KPMG introduces the three phases of AI value — a framework designed to guide insurers through the AI adoption journey. This phased approach provides a structured roadmap, helping insurers prioritize investments, align initiatives with business goals, and position themselves effectively in the age of AI in insurance. Click on each of the phases below to find out more.
Enable
The Enable phase focuses on enabling people and building AI foundations. Organizations appoint a responsible executive, create an AI strategy, identify high-value use cases, boost AI literacy, align with regulations and establish ethical guardrails. AI pilots are launched across functions, while cloud platforms and pre-trained models are leveraged with minimal customization.
Embed
The Embed phase integrates AI into workflows, products, services, value streams, robotics, and wearables, delivering greater value. A senior leader drives enterprise-wide workforce redesign, re-skilling and change, embedding AI into operating models with a focus on ethics, trust and security. AI agents and diverse models are deployed, supported by cloud and legacy tech modernization, while enterprise-wide data enhances operations.
Evolve
The Evolve phase evolves business models and ecosystems, using AI and frontier technologies like quantum computing and blockchain to solve large sector-wide challenges. AI orchestrates seamless value across enterprises and partners. Emphasizing ethics and trust with real-time security, this phase uplifts human potential with broad and deep workforce training, fostering a creative, innovative and value-driven future.
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