Insurers Eye AI for a Technological Future

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The survey garnered responses from 431 insurance executives spanning Australia, Europe, the UK, the US, and Canada. It reveals a dramatic escalation in the anticipated role of AI. "Insurers reported that they expected the impact of AI to nearly double from the last year to the current year, and then more than triple in the year ahead," noted Earnix. The survey indicates a staggering near six-fold increase in industry leaders' belief in AI's business impact over a three-year period.

Currently, less than a third of these insurance firms actively utilize AI models capable of real-time predictive analysis. Most companies rely on analytics primarily for validation rather than for making optimal decisions, which underscores a gap in leveraging technology fully. Earnix finds that many insurers continue to depend on outdated systems, potentially hindering their ability to keep pace with evolving technologies.

Another key insight from the Earnix survey is that nearly 50% of insurers acknowledge being behind on their modernization goals. This lag could prove challenging in adopting breakthrough technologies, especially those linked to AI, advanced analytics, pricing, and underwriting frameworks.

Despite these hurdles, there is a marked intent across the industry to invest more heavily in AI-driven innovations. Many respondents have highlighted increased spending on regulatory compliance tools compared to the previous year. In particular, 68% of insurers in Europe and Australia reported heightened investments in this area. "Insurers in Europe and Australia may have a slight head start when it comes to implementing new technology to help with compliance," the Earnix report stated.

Looking forward, the industry acknowledges being at least two years away from realizing their full AI and analytics potential. However, this sets a clear trajectory for insurers to follow as they navigate the complexities of modern technology adaptation.

This article is based on findings from Earnix as detailed in a recent report.

Published:Tuesday, 12th Nov 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Why Truck Insurance Pricing Is Splitting for Australian Fleets

16 Jul 2026: Paige Estritori

Australia’s insurance market has moved into a more competitive phase, but truck operators should not assume that softer conditions will translate into automatic premium relief. A July 2026 market overview reported that insurer appetite remains strong for well-presented commercial risks, yet motor insurance is becoming sharply divided between disciplined fleets and higher-risk heavy vehicle operations. - read more

Chronic Illness Risk Puts Fresh Focus on Income Insurance

15 Jul 2026: Paige Estritori

New research highlighted by Zurich has put a timely spotlight on a major challenge for Australian workers: people are living longer, but many are also spending more of those years managing chronic health conditions. For households that rely on a regular wage, salary, business income or contract work, this trend reinforces why income insurance is not just a product for sudden accidents. - read more

Why Commission Earners Should Check Their Income Protection Wording

15 Jul 2026: Paige Estritori

A recent Australian Financial Complaints Authority decision has put an important issue in focus for sales staff, recruiters, account managers and other workers whose income depends partly on commission. The dispute involved a policyholder covered under an employer’s group income protection arrangement with MetLife. After a work-related mental health injury, he claimed on the policy, but his commission earnings were left out when his pre-disability income was calculated. - read more

Steadfast Takeover Bid Puts Broker Networks in Focus

15 Jul 2026: Paige Estritori

A fresh development in Australia’s insurance broking sector is worth watching for boat owners, charter operators and anyone who relies on specialist advice to arrange marine cover. On 14 July 2026, Insurance News reported that global private equity firm KKR had joined the consortium seeking to acquire Steadfast Group in a proposed $7.7 billion transaction. - read more

Lifeline Breach Puts Cyber Cover Back on the SME Agenda

15 Jul 2026: Paige Estritori

A reported data breach involving Lifeline Australia has renewed attention on a widening protection gap in the Australian cyber insurance market. While Lifeline has indicated that help-seeker and financial information were not compromised, the incident is a timely reminder that staff, volunteer, client and supplier data can still create serious legal, operational and reputational exposure for any organisation. - read more

Click for more Insurance News