Increased efficiency as the most important driver
- Integration into existing processes is the biggest challenge when it comes to scaling.
- More than two thirds of insurers are planning to invest in AI training for their employees.
- The vast majority (88%) rely on collaboration with AI start-ups.
Munich, December 12, 2024 - The use of artificial intelligence (AI) in the insurance industry is at a crucial stage. The majority of insurers are currently using the technology to optimize their business processes; in the medium term, companies are focusing on the widespread use of AI by investing in training and digital infrastructure. The majority of insurance companies see the greatest untapped potential in claims and contract management. Almost every second insurer (47%) is currently investing in AI in these areas, as a recent survey conducted by Deloitte together with the InsurTech Hub Munich (ITHM), an innovation platform for the insurance industry, shows. In addition to optimizing processes to increase efficiency (94%), increasing customer satisfaction (59%) and increasing sales (41%) are cited as the most important goals.
For the publication "From piloting to scaling: AI in insurance companies", 16 of the 80 largest insurance companies in Germany by premium volume (BaFin, 2023) were surveyed independently of each other, ten of them from the top 30. Both regionally and internationally operating companies are represented. Managing directors, board members and AI managers from small, medium-sized and large insurers took part in the survey between June and July 2024.
The other focal points of current AI-related investments also show that efficiency gains are currently at the forefront. 53% of respondents are investing in IT infrastructure and data, 47% in improving customer service and claims management and 41% in marketing and sales.
"Insurers are already seeing initial success with AI projects," says Dr. Jörg Günther, Partner and Insurance Lead Consulting at Deloitte. "For successful scaling, the focus must now be on the needs of customers and employees."
Currently, 41% of respondents see AI as a catalyst for growth and innovation. 59 percent cite difficulties in integrating AI into existing systems or processes as the biggest obstacle to its widespread introduction. For 41 percent, insufficient AI expertise within the company is also a problem. This is followed by a limited maturity of the technological infrastructure (35%), concerns about data protection and data security (35%) and uncertainties regarding regulation and compliance (29%). "The scaling of AI solutions currently still faces considerable challenges," says Dr. Günther. "This makes it all the more important to establish a culture of change within the company and to provide employees with the best possible qualifications through targeted training."
Further training, outsourcing, partnerships: Measures for AI scaling
Accordingly, 71% of the insurers surveyed are planning to invest more in employee training in the future. This includes customized in-house training courses as well as the development of knowledge communities through strategic partnerships. A third of those surveyed outsource certain IT functions partially or even completely. A full 88% also already cooperate with start-ups in the field of AI, and a further 75% with large tech companies. Just as many rely on support from consulting firms.
"The results of the study confirm our focus on AI and its scaling. With the help of the InsurTech Hub Munich programs, we are not only opening the door to cutting-edge technology, but also facilitating targeted collaboration between start-ups, insurers and technology companies through strategic partnerships and a strong network. In this way, we are strengthening Germany as a center for forward-looking insurance solutions and accelerating the implementation of new technologies in the industry," emphasizes ITHM CEO Dr. Klaus Driever.
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