17:10 uur 04-11-2024

Earnix Survey Reveals Majority of Insurers Plan to Implement AI Predictive Models Within Two Years

After years of uncertainty, majority of Insurers are ready to take the next steps to implement more effective strategies to grow their business

BOSTON–(BUSINESS WIRE)– Earnix, the leading AI, real-time platform for intelligent decisioning SaaS solutions for the insurance and financial services industries, today announced its third annual survey on the state of the insurance market, the 2024 Industry Trends Report. The survey of over 400 global insurance executives uncovers key findings, trends, implications for what’s next in insurance, and sheds light on the role technology can play in shaping a better future.

Key findings from the 2024 survey include:

  • More than two-thirds (70%) of respondents expect to deploy AI models that make predictions based on real-time data in the next two years
  • More than half of respondents (51%) report their company had to pay a fine or issue refunds due to errors in the last year
  • 58% of respondents take more than 5 months to implement a rule change and 21% take longer than 7 months
  • Insurers still need to move beyond legacy systems and fully modernize their operations, yet 49% admit they are behind schedule

“This year’s survey reveals the rapid use of AI, a 5–7-month average deployment of rule changes, as well as struggles with modernization,” said Robin Gilthorpe, CEO of Earnix. “Macroeconomic conditions such as inflation, climate change, cybersecurity risk, and uncertain economic conditions will also continue challenging insurers. Earnix is proud to be at the forefront of innovation in the insurance industry, and we look forward to working with insurers to help drive the technological growth the industry is experiencing to meet the modern needs of the market.”

Among the key findings from the study, are that more than two-thirds (70%) of insurers are prioritizing the deployment of AI models that make predictions based on real-time data in the next two years, while less than one-third (29%) presently have them in place. While AI is not new to insurance, the entire industry is clearly increasing its adoption. Insurers reported that they expect the impact of AI to nearly double from last year to the current year, and then more than triple in the year ahead.

Regulatory compliance is another area of focus and insurers are now investing more time on it than in years past. More than two-thirds (70%) of respondents reported they will spend more time on regulatory compliance next year compared to this year, continuing a two-year trend. The reason for the time increase may be regulatory fines, as more than half of respondents (51%) report their company had to pay a fine or issue refunds due to errors in the last year. As regulators catch up with technological advancements, new guidelines are likely to emerge, requiring insurers to continually update their frameworks. While failure to comply, will continue to become more severe.

“In today’s constantly changing landscape, it is critical for organizations to leverage AI models that provide real-time analytical data, enabling them to increase collaboration and innovation, drive product and business growth, and gain and retain market share,” said Aaron Wright, Director of Strategy at Earnix. “After years of talking about the implementation of this technology, we are finally seeing plans being put into action in this year’s survey.”

About the Report

The survey, conducted by Earnix and Market Strategy Group, LLC in 2024 included 431 global insurance executives from the United States, Canada, Europe, and Australasia. Of those surveyed, 381 were from carriers with less than 20,000 employees and 50 executives from companies with more than 20,000 employees. The participants represented a range of roles and departments, including actuarial/pricing, analytics, product, underwriting, C-Suite, and IT/Technical roles.

Click here to download a full copy of the report.

About Earnix

Earnix is the premier provider of mission-critical, cloud-based intelligent solutions across pricing, underwriting, rating, and product personalization. These fully integrated solutions provide ultra-fast ROI and are designed to transform how global insurers and banks are run by unlocking value across all facets of the business. Earnix has been innovating for insurers and banks since 2001, with customers in over 35 countries across six continents and offices in the Americas, Europe, Asia Pacific, and Israel.

Contact Earnix via LinkedIn, X, and Facebook. Read the Earnix blog.

Contacts

Krystina Puleo

Global Director of External Communications

press@earnix.com

Check out our twitter: @NewsNovumpr