Data has long been at the heart of operations decision-making for insurers. A full 84% say that they design their operating model based on data rather than on executive experience or intuition.
Improving their ability to scale AI is a key opportunity for insurers to make different—and better—use of data. AI gets smarter over time by ingesting the data and determining the relevant information to extract to improve decision-making in underwriting and claims processes.
The good news is that 43% of insurers have fully adopted AI and data science capabilities—a six-fold increase from 7% just three years ago. Cloud costs have decreased consistently over the last five years, and security and regulatory compliance in the cloud have improved—which makes it the perfect vehicle to help insurers scale automation and AI while reducing legacy technology debt.