Strategic Intelligence: Artificial Intelligence in Insurance

Strategic Intelligence: Artificial Intelligence in Insurance

Summary

This report provides an in-depth analysis of the future of artificial intelligence (AI) in the insurance industry. It explains what AI is and why it will be impactful, including GlobalData market data and forecasts on the size of AI as well as consumer insights from our global surveys. These findings showcase how ready consumers around the world are to interact with AI technology across all parts of the insurance value chain. The report looks into how AI is being used by insurers and insurtechs around the world with a series of case studies that illustrate progress to date, while also offering predictions about the future of the technology.

AI technology is still at a relatively early stage within the insurance industry, and consumers and companies are still getting to grips with it to an extent, especially in insurance. However, our survey data shows that a large proportion of insurance customers around the world are open to trying it across various sections of the insurance value chain (42.5% of global consumers are comfortable with trying an AI tool to receive insurance premiums, for example). Furthermore, it is clear that younger consumers are much more open to trying the technology and need less convincing to do so. This, combined with the expected improvement with AI technology, and importantly how insurers incorporate it, suggests that AI has a very significant role to play in the insurance industry over the next decade.

Scope

• AI is still an immature market, but it contains a plethora of both big technology companies and disruptors. Technology players with large data sets and advanced AI chip capabilities are leading the pack, with US tech giants dominating each value chain segment and Chinese players rapidly advancing.
• Despite the recent progress in the use of AI in real-world situations, such as facial recognition, virtual assistants, and (to a certain extent) autonomous vehicles, we are still in the early stages of the AI roadmap
• M&A investment into AI in the insurance industry stalled slightly after the COVID-19 pandemic. However, there was a strong recovery in 2023 and 2024-with a 20.5% rise in completed deals in 2024 without including December figures.
• Generative AI is already having an impact on insurance despite being relatively new technology. It rose to prominence in 2023 and has the potential to rapidly improve chatbots by making them more human-like and able to respond to live information and requests.

• Understand the hottest topic in financial services at present.
• Learn about the impact the technology is already having and how that will evolve over time.
• Identify the key players leading the way in AI in insurance.