AI Adoption Gap Widens Between National and Regional Insurance Brokers
National brokers lead AI adoption at 45%, while only 9% of regional brokers have integrated AI. Cybersecurity concerns exist but shouldn’t block AI use in insurance.
AI Adoption Gap Widens Between National and Regional Brokers
Artificial intelligence (AI) integration is moving faster among national brokers compared to their regional and provincial counterparts. Recent research by insurance software provider Open GI reveals that 45% of national brokers have adopted AI initiatives, while only 9% of regional brokers have done the same.
This discrepancy extends beyond adoption rates to attitudes and priorities. Half of national brokers believe organisations not using AI risk falling behind. In contrast, just 25% of regional brokers and 21% of provincial brokers share this view. Moreover, only 5% of regional and provincial brokers see AI adoption as a core business priority within the next year, compared to 25% of national brokers.
Concerns Around Cybersecurity
Peter Hunter, head of research and development at Open GI, highlights the critical role of cybersecurity in AI implementation.
“Brokers are right to consider cyber risks when adopting AI,” he explains. “AI often involves processing client data in new ways, which can introduce vulnerabilities in data pipelines or algorithms. However, these concerns shouldn’t prevent brokers from adopting AI.”
AI Strategies Still Developing
Despite greater enthusiasm for AI, only 2% of national brokers report their AI strategies as “mature and complete.” Hunter points out the significant opportunity for brokers who develop effective AI strategies to improve business performance.
“AI isn’t some threat aiming to replace brokers. It’s a set of tools that help with tasks like content creation, automating repetitive work, analyzing data, and making it easier for clients to access information,” he says. “Used correctly, AI can be a valuable asset for brokers.”
Key Takeaways for Brokers
- National brokers are leading AI adoption, but most strategies remain immature.
- Regional and provincial brokers lag behind in both adoption and urgency around AI.
- Cybersecurity should be a key consideration but not a barrier.
- AI tools can streamline operations and enhance client service.
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