AI in Insurance: Why Widespread Adoption Has Yet to Transform Customer Experience

Genpact Research Reveals AI's Untapped Potential in Insurance

Despite significant AI adoption in the insurance sector, many companies struggle to translate technology investments into better customer experiences. A new report by Genpact, in partnership with Amazon Web Services (AWS), highlights that while 69% of insurers have deployed AI, only 36% of US customers have noticed improvements in their digital interactions.

This gap points to challenges in scaling AI effectively and aligning initiatives with customer expectations. The report, Harness the winds of change: How to scale AI and build trust in insurance, offers practical insights and a strategic blueprint for insurers ready to expand AI’s impact.

Current State of AI in Insurance

The research draws on surveys from 200 senior insurance executives worldwide and 1,000 US insurance customers, alongside interviews with 16 C-level leaders. It reveals key hurdles and opportunities:

• Wide adoption, limited customer impact: While AI is in use across many insurers, only a third of customers have seen digital experience improvements. Trust remains a concern, with 59% of consumers preferring live agents over AI-driven quotes, especially in times of crisis.
• Underused AI capabilities: Most insurers focus AI on high-volume, repetitive tasks for efficiency. Only 8% use AI for growth or monetization, signaling a conservative approach that leaves growth potential untapped.
• Governance and oversight challenges: Nearly half of respondents identify governance as a bigger barrier than technology itself. Data privacy and varying regulations complicate efforts to implement AI at scale.
• AI fluency gaps: Only 2% of executives say most of their teams are AI fluent. A large majority report limited AI skills among staff, restricting how effectively AI can be scaled.

Strategic Blueprint for Scaling AI

The report proposes six practical steps insurers can take to expand AI adoption and impact:

• Strengthen data foundations: Reliable, well-governed data is critical for AI success.
• Build partnerships: Collaborate with technology providers and experts to accelerate AI initiatives.
• Empower people: Invest in AI training and develop workforce fluency to close skill gaps.
• Design for scale: Move beyond proofs of concept to build scalable AI solutions across business units.
• Balance governance and risk: Implement oversight frameworks that ensure compliance without stifling innovation.
• Prioritize business outcomes: Align AI projects with clear goals that drive value and improve customer experiences.

By focusing on these areas, insurers can better leverage AI to improve efficiencies, enhance customer trust, and open new avenues for growth.

Conclusion

AI adoption in insurance is well underway but far from fully realized. Addressing governance challenges, closing skill gaps, and shifting the focus from pilots to scalable solutions will be key. Insurers that succeed will improve customer satisfaction and remain competitive in a changing market.

For insurance professionals interested in expanding AI skills, tailored educational resources are available to build expertise and support effective AI integration. Explore relevant AI courses and training options here.