Insurance CEO Outlook: Insurance companies between AI leap and trust issue

Despite geopolitical uncertainties, rising claims costs and regulatory requirements, the insurance industry remains optimistic. The Insurance CEO Outlook shows that the industry has learned to deal with volatility – and is increasingly translating uncertainty into strategic action. This confidence is clearly reflected in the following figure: 82 per cent of the CEOs surveyed expect growth for their companies.

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Insights into the strategies of industry leaders on growth, AI, workforce transformation and risk management.

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Despite ongoing uncertainties, insurance CEOs' confidence in their own growth prospects is rising significantly.

AI is becoming a core strategic tool

Artificial intelligence has long been more than just a topic for the future for insurers. 73 per cent of CEOs prioritise AI investments, particularly to increase efficiency in underwriting, claims processing and customer service. At the same time, it is clear that technological performance alone is not enough. This means that trust, transparency and the responsible use of AI are becoming increasingly important – both for customers and regulators.

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Key areas of application where insurers see the greatest leverage from AI

Underwriting
Claims handling
Customer service

CEOs are deploying AI specifically where it measurably improves efficiency, speed and customer experience.

Employee qualifications as the key

The biggest bottleneck in AI transformation lies less in technology than in the human factor. 77 per cent of CEOs see the further training of their employees as a key challenge for future growth. Successful insurers therefore invest not only in systems, but also in new role models, targeted further training and a culture in which humans and AI work together.

The use of AI not only encompasses technological aspects, but also places people at the centre of change. Tasks, skills and collaboration across processes and systems are being rethought – and with them, the entire organisation.

Stefan Heyers

Partner, Financial Services, Head of Insurance

AI transformation requires technology and people

What technology makes possible

Process automation
Efficiency improvement
Scalability

What an organisation must do to make AI effective

Employee training
Defining new skills and roles
Collaboration along end-to-end processes

Growth through transactions and resilience

The insurance industry shows the highest willingness to engage in M&A of all the sectors surveyed: 50 per cent of CEOs are planning transactions that will have a significant impact on their companies. At the same time, traditional strengths are gaining in importance. 83 per cent of executives are focusing on expanding risk management and cyber resilience as the basis for stable, profitable growth in an increasingly digital world.

Sustainability as a strategic dimension

For many insurers, sustainability is an integral part of their business strategy. Climate risks, ESG requirements and rising expectations from customers and investors make sustainability a competitive issue. Top managers recognise this as an opportunity to develop new products, better manage risks and create long-term value.

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Interest in inorganic growth is increasing as insurers seek to reorganise, reduce costs, improve customer service and modernise outdated systems. Asset management and private equity firms are acquiring entire business units, and insurance companies are consolidating in certain regions.