The rise of autonomous AI agents is fundamentally changing the way insurance companies work, but also the opportunities they offer: the technology allows insurers to proactively mitigate risks, dynamically optimise prices and communicate with customers around the clock and in a personalised manner.
How can managers manage this AI implementation? KPMG International conducted a comprehensive study on this question, which was published as part of the publication "Intelligent Insurance". The study is based on in-depth interviews with AI experts, a survey of numerous decision-makers in key global markets and a long-term analysis to examine the realistic value that the full introduction and utilisation of generative AI can create.
The most exciting results of the study include:
- Around three quarters of executives in the insurance industry are concerned that the investments they are making today could become obsolete in the near future.
- Nevertheless, just as many believe that insurers using AI have a clear competitive advantage.
- Furthermore, around three quarters already report a moderate to very high ROI (return on investment) from their investments in AI.
In addition, "Intelligent Insurance" provides a concrete roadmap for effective AI implementation for insurers that goes beyond the technological aspects, is based on the analysis of best practices and is founded on the following three pillars:
1. Enable
The first step is to lay the foundations for artificial intelligence - developing an AI strategy, appointing a responsible manager, identifying and launching use cases, qualifying staff - while always keeping regulatory and ethical guidelines in mind.
2. Embed
This involves the deeper integration of AI into work processes - with the aim of creating added value. An experienced manager takes on the company-wide reorganisation, also focusing on the comprehensive use of data and at the same time supporting change management - with a focus on ethics, trust and security.
3. Evolve
In this phase, AI business models and ecosystems will continue to develop. Other future technologies such as quantum computing and blockchain are combined with AI with the aim of solving industry-wide challenges and with a focus on a creative, innovative and value-orientated future.
A German insurance company as a pioneering example
KPMG International uses the example of a leading German insurer to show how this AI roadmap can be implemented and how any hurdles can be overcome. This insurer relies on the integration of wearables and health data to customise policies and reward health-conscious behaviour.
