Insurers Set to Increase AI Investment: Top 4 Trends in 2024

A recent survey unveiled that over 90% of insurance companies plan to boost their investments in artificial intelligence (AI) by 2024. This surge reflects the growing recognition of AI’s potential to revolutionize the insurance industry.

AI’s Increasing Role in Insurance

The adoption of AI in the insurance industry has been gradually increasing over the years. AI is set to play a pivotal role in accelerating business processes, fraud detection, and personalizing customer experiences. The study revealed that 90% of insurers are ready to increase their investment in this technology, underscoring the importance the industry is placing on AI.

Top 4 Trends in Insurance for 2024

The survey also highlighted the top four trends in the insurance sector for 2024. These trends include the use of AI for claims processing, the rise of insurtech companies, the growth of usage-based insurance (UBI), and the increasing importance of cybersecurity.

Claims Processing and AI

AI’s role in claims processing is expected to become more significant, with automation speeding up claims, reducing human error, and improving overall service. This development is likely to result in greater customer satisfaction and loyalty.

Rise of Insurtech Companies

The survey also predicts a rise in the number of insurtech companies, which leverage technology to enhance insurance services. These firms are expected to disrupt the traditional insurance model by offering more agile, customer-focused services.

Growth of Usage-Based Insurance

Usage-based insurance (UBI), which calculates premiums based on actual usage, is also predicted to grow. This personalized approach to insurance could offer customers more control over their premiums and encourage safer behaviour.

Cybersecurity’s Growing Importance

With the increasing digitalization of the insurance industry, cybersecurity is becoming more critical. Insurers will need to invest in robust security measures to protect sensitive data and maintain customer trust.

In conclusion, the insurance industry is poised for significant changes in the coming years, with AI playing an increasingly important role. The rise of AI, insurtech companies, usage-based insurance, and the importance of cybersecurity are set to shape the future of the industry.