AI adoption is widespread in the insurance industry, but differences in implementation, maturity, governance and execution may lead to divergent outcomes on performance and credit quality, S&P Global Ratings said in a new report.
The report, ‘AI In Insurance Survey: Governance, Data Readiness, And Risk Controls Will Drive Competitive Advantage’, details the results and insights of the survey of 121 insurance sector entities' AI deployment, forecasts, hurdles and governance.
The survey results suggest that governance, data readiness and risk controls may increasingly distinguish insurers that translate AI investment into durable business value from those exposed to greater operational, regulatory and reputational risks.
“The survey results show that AI is increasingly used to improve customer experience, underwriting and risk management and claims processing, with operational benefits appearing earlier and more visibly than financial gains,” said S&P Global Ratings analyst Andreas Lindberg.
“While evidence of AI’s impact on profitability remains inconclusive, insurers’ survey responses suggest they anticipate that successful scaling will significantly accelerate cost savings by end-2028.”