KPMG – Advancing AI across Insurance

KPMG's November 2024 report, "Advancing AI across Insurance," explores the transformative potential of artificial intelligence (AI) in the insurance industry. The report highlights that 57% of insurance organizations view AI as the most important technology for achieving their ambitions over the next three years. However, 58% of insurance CEOs believe it will take three to five years for generative AI to provide a return on investment, with increased profitability, fraud detection, and cyber-attack mitigation listed as the top benefits. The study emphasizes that while insurers are investing in AI, the pace of implementation is slower compared to other industries, potentially hindering competitive advantage. It underscores the need for a balanced approach that embraces innovation while effectively managing associated risks. The report also advocates for a data-driven and people-led strategy, recommending that insurers establish a solid digital foundation, ensure data quality, and invest in upskilling their workforce to fully leverage AI capabilities.