New IBM study: Insurance leaders agree that rapid adoption of generative AI is necessary to compete, but insurance customers express reservations
IBM's Institute for Business Value conducted a study on generative AI in the insurance industry, surveying 1,000 insurance c-suite executives and 4,700 insurance customers. Key findings include:
1. Insurance CEOs are split on whether generative AI is more of a risk (49%) or opportunity (51%).
2. 77% of industry leaders believe generative AI is necessary to stay competitive.
3. Investments in generative AI are expected to increase by over 300% from 2023 to 2025.
4. Only 29% of insurance customers are comfortable with gen AI virtual agents providing service.
5. Organizations with less-centralized operating models for gen AI development can improve business outcomes by up to 14%.
The study recommends building tailored products, addressing trust issues, and deploying AI across the enterprise with strong governance.
L'Institute for Business Value di IBM ha condotto uno studio su AI generativa nell'industria assicurativa, intervistando 1.000 dirigenti assicurativi e 4.700 clienti assicurativi. I risultati chiave includono:
1. I CEO delle assicurazioni sono divisi su se l'AI generativa rappresenti più un rischio (49%) o un'opportunità (51%).
2. Il 77% dei leader del settore ritiene che l'AI generativa sia necessaria per rimanere competitivi.
3. Gli investimenti nell'AI generativa dovrebbero aumentare di oltre il 300% dal 2023 al 2025.
4. Solo il 29% dei clienti assicurativi si sente a proprio agio con agenti virtuali dell'AI generativa che forniscono servizi.
5. Le organizzazioni con modelli operativi meno centralizzati per lo sviluppo dell'AI generativa possono migliorare i risultati commerciali fino al 14%.
Lo studio raccomanda di costruire prodotti personalizzati, affrontare questioni di fiducia e implementare l'AI in tutta l'impresa con una forte governance.
El Instituto de Valor Empresarial de IBM llevó a cabo un estudio sobre IA generativa en la industria de seguros, encuestando a 1,000 ejecutivos de seguros y 4,700 clientes de seguros. Los hallazgos clave incluyen:
1. Los CEO de seguros están divididos sobre si la IA generativa representa más un riesgo (49%) o una oportunidad (51%).
2. El 77% de los líderes de la industria creen que la IA generativa es necesaria para mantenerse competitivos.
3. Se espera que las inversiones en IA generativa aumenten en más del 300% entre 2023 y 2025.
4. Solo el 29% de los clientes de seguros se siente cómodo con agentes virtuales de IA generativa que brindan servicios.
5. Las organizaciones con modelos operativos menos centralizados para el desarrollo de IA generativa pueden mejorar los resultados comerciales en hasta un 14%.
El estudio recomienda construir productos personalizados, abordar problemas de confianza y desplegar IA en toda la empresa con una sólida gobernanza.
IBM의 비즈니스 가치 연구소는 보험 산업의 생성적 AI에 관한 연구를 수행하였으며, 1,000명의 보험 임원과 4,700명의 보험 고객을 조사했습니다. 주요 발견 사항은 다음과 같습니다:
1. 보험 CEO들은 생성적 AI가 더 큰 위험(49%)인지 기회(51%)인지에 대해 의견이 분분합니다.
2. 업계 리더의 77%가 경쟁력을 유지하기 위해 생성적 AI가 필요하다고 생각합니다.
3. 2023년부터 2025년까지 생성적 AI에 대한 투자는 300% 이상 증가할 것으로 예상됩니다.
4. 보험 고객의 29%만이 생성적 AI 가상 상담원이 서비스를 제공하는 것에 대해 편안함을 느낍니다.
5. 생성적 AI 개발을 위한 덜 중앙 집중화된 운영 모델을 가진 조직은 비즈니스 성과를 최대 14%까지 향상시킬 수 있습니다.
연구는 맞춤형 제품을 개발하고, 신뢰 문제를 해결하며, 강력한 거버넌스와 함께 기업 전체에 AI를 배포할 것을 권장합니다.
L'Institut pour la valeur commerciale d'IBM a mené une étude sur l'IA générative dans le secteur de l'assurance, en interrogeant 1.000 dirigeants d'assurance et 4.700 clients d'assurance. Les principales conclusions incluent :
1. Les PDG d'assurance sont partagés sur le fait que l'IA générative représente plus un risque (49%) ou une opportunité (51%).
2. 77% des dirigeants du secteur estiment que l'IA générative est nécessaire pour rester compétitif.
3. Les investissements dans l'IA générative devraient augmenter de plus de 300% entre 2023 et 2025.
4. Seul 29% des clients d'assurance se sentent à l'aise avec des agents virtuels de l'IA générative offrant des services.
5. Les organisations ayant des modèles opérationnels moins centralisés pour le développement de l'IA générative peuvent améliorer les résultats commerciaux jusqu'à 14%.
L'étude recommande de construire des produits sur mesure, de traiter les problèmes de confiance et de déployer l'IA dans toute l'entreprise avec une gouvernance solide.
Das Institute for Business Value von IBM hat eine Studie über generative KI in der Versicherungsbranche durchgeführt, bei der 1.000 Führungskräfte und 4.700 Versicherungsnehmer befragt wurden. Die wichtigsten Ergebnisse sind:
1. Die CEOs der Versicherungsunternehmen sind sich uneinig, ob generative KI mehr ein Risiko (49%) oder eine Chance (51%) darstellt.
2. 77% der Branchenführer glauben, dass generative KI notwendig ist, um wettbewerbsfähig zu bleiben.
3. Die Investitionen in generative KI werden voraussichtlich von 2023 bis 2025 um über 300% steigen.
4. Nur 29% der Versicherungsnehmer fühlen sich wohl dabei, wenn generative KI-virtuelle Agenten Dienstleistungen anbieten.
5. Organisationen mit weniger zentralisierten Betriebsmodellen für die Entwicklung von generativer KI können die Geschäftsergebnisse um bis zu 14% verbessern.
Die Studie empfiehlt, maßgeschneiderte Produkte zu entwickeln, Vertrauensprobleme anzugehen und KI mit starker Governance im gesamten Unternehmen einzusetzen.
- 77% of industry leaders acknowledge generative AI is necessary to stay competitive
- Investments in generative AI expected to surge by over 300% from 2023 to 2025
- Less-centralized operating models for gen AI development can improve business outcomes by up to 14%
- Only 29% of insurance customers are comfortable with gen AI virtual agents providing service
- Only 26% of customers trust the reliability and accuracy of advice given by generative AI
- 49% of Insurance CEOs see generative AI as more of a risk than an opportunity
Insights
This study highlights a significant shift in the insurance industry towards generative AI adoption. The projected 300% increase in gen AI investments from 2023 to 2025 indicates a rapid transformation in the sector. However, the disconnect between insurers' focus on customer experience and customers' desire for personalized risk products presents both challenges and opportunities.
The 77% of industry leaders acknowledging gen AI as necessary for competitiveness underscores its strategic importance. Yet, the low customer trust (only
For IBM, this trend could drive demand for their AI and cloud services in the insurance sector. The company's expertise in enterprise AI and financial services positions them well to capitalize on this market shift. Investors should monitor IBM's performance in securing partnerships and contracts with insurers for AI implementation.
The study reveals a critical gap in the insurance market: while insurers are rushing to adopt generative AI, customers are skeptical about its use. This misalignment presents both risks and opportunities for the industry.
The split opinion among CEOs (
For IBM, this market dynamic could be highly beneficial. Their expertise in AI governance and ethical AI implementation addresses a key customer concern. The recommendation to build more tailored products and address trust issues aligns with IBM's strengths in data analytics and security. This positions IBM as a potential leader in guiding the insurance industry through this technological transition, potentially boosting their market share in the sector.
The study's findings have significant implications for IBM's financial outlook. The projected 300% increase in generative AI investments in the insurance sector represents a substantial market opportunity. Given IBM's strong position in enterprise AI and financial services, this could translate into increased revenue from their Technology and Consulting segments.
However, the low customer trust in AI (
Investors should monitor IBM's market share in insurance AI implementations and any announcements of major partnerships or contracts in this sector. The company's ability to address the trust gap and deliver tailored AI solutions for insurers could be a key differentiator in this competitive market.
C-suite executives see generative AI as both a risk and an opportunity
Findings from a survey of 1,000 insurance c-suite executives in 23 countries and 4,700 insurance customers in nine countries are outlined in Generative AI in the Insurance Industry: You Can't Win if You Don't Play.
"The insurance industry has made headway in generative AI with customer experience and chatbot enhancements, but insurers must focus on adopting comprehensive governance frameworks that ensure transparency, privacy, and explainability to ensure they are building trusted AI assistants and reliable processes," said Mark McLaughlin, Director of Global Insurance with IBM Technology. "There are also significant opportunities in connecting customers to the right products. Leveraging AI across the enterprise will be critical to improve both customer risk experiences and to implement the underlying IT tools that power those experiences."
Key Takeaways
- Insurance CEOs surveyed were almost evenly divided on whether they see generative as more of a risk (
49% ) versus an opportunity (51% ) 77% of industry leaders who responded acknowledge that generative AI is necessary to keep pace with competitors- Investments in gen AI are expected to surge by over
300% from 2023 to 2025 as organizations move from pilots in one or two areas to implementations in multiple functions across business lines - Only
29% of insurance customers queried said they are comfortable with gen AI virtual agents providing service, with only26% saying they trust in the reliability and accuracy of advice given by generative AI - Organizations choosing less-centralized operating models to develop gen AI capabilities can improve business outcomes by up to
14%
Recommendations
- Build more tailored products with flexibility, advice, and linkage to risk data
- Match those products intelligently to customers' needs
- Address trust issues with strongly ethical, governed AI
- Also use AI to connect the underlying risk data and address long-standing insurer and financial service provider technical debt
- Deploy – and govern – AI across the enterprise with local knowledge experts empowered to connect AI to the insurance value chain
Download the full report here: www.ibm.com/thought-leadership/institute-business-value/en-us/report/insurance-generative-ai
IBM is a leading provider of enterprise AI, hybrid cloud architecture, security and ESG insights to the global financial services sector. Its deep industry expertise, extensive portfolio of services and solutions, and its robust ecosystem of fintech partners, empower collaboration, innovation, and creation with clients. As a trusted partner to banks, insurers, capital markets and payments providers, IBM guides financial institutions on all stages of their digital transformation journeys through IBM Consulting and delivers the proven infrastructure, software, and services they need through IBM Technology. For more information, visit https://www.ibm.com/industries/insurance.
Methodology
The IBM Institute for Business Value (IBM IBV), in cooperation with Oxford Economics, surveyed 1,000 C-level insurance executives in 23 countries in Q3 2024.
In the same timeframe, the IBM IBV also surveyed 4,700 insurance customers in nine countries, with a minimum of 900 respondents in each country:
The IBM Institute for Business Value, IBM's thought leadership think tank, combines global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit www.ibm.com/ibv.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Media Contact
Mary Ellen Higgins
IBM Global Financial Services Industry External Communications
maryellen.higgins@ibm.com
m +1.781.789.1911
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SOURCE IBM
FAQ
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