Executive summary
Preparing for the transformative impact of AI
Generative AI (GenAI) promises to revolutionize risk assessment, claims processing, marketing, sales and
service and other essential aspects of the business. But for all the pressure to deploy now, senior leaders must
take the time to establish sufficiently robust governance models and policies that ensure responsible and
ethical use of AI.
Identifying the full range of risks — from data breaches to reputational issues — and designing the right
framework for managing them are the first priorities. Firms that move quickly (in exploring use cases) yet
methodically (in standing up governance) will be best positioned to win in the GenAI era.
Spotlight on delivering societal value
An ever-expanding savings and protection gap, macroeconomic uncertainty and greater awareness of more
severe risks have prompted regulators and public authorities to revisit long-standing rules and guidelines for
the industry. They are also engaging all kinds of private enterprises — insurers very much included — to devise
strategies that address serious threats to societal stability and prosperity.
But the moment calls for more than compliance-driven thinking and expanded philanthropic endeavors.
Rather, product innovation, new business models and purposeful investments can help insurers unlock
growth even as they strengthen protections against climate risk, promote financial well-being and encourage
physical and mental health. All of these steps would deliver what customers want and important benefits to
communities around the world.
Ever-evolving customer needs and blurring industry lines
If change is the only constant, then changing customer needs can be the strategic “north star” for all types of
insurance companies. Achieving true customer-centricity necessitates changes to everything from technology
architectures and product portfolios to organizational models and cultural norms.
More precise customer knowledge is the foundation for more personalized service and richer experiences
delivered via preferred channels. To stave off new forms of competition, personal insurers can engage younger
generations just beginning to exert their market influence, and commercial carriers can seek optimal ways to
integrate traditional coverage within risk mitigation strategies.
For full report please visit the authors website
Courtesy : https://assets.ey.com/
Disclaimer : This report has been published for information purpose. All the copyrights of the publication remain with the original publishers of the report.
