Insurers Are Ready to Hand Repeatable Work to AI, Just 6% Would Trust a General-Purpose Model to Do It

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Postmedia has not reviewed the content. by Business Wire Insurers Are Ready to Hand Repeatable Work to AI, Just 6% Would Trust a General-Purpose Model to Do ItAuthor of the article:New research finds that 83% of the global insurance market would hand repeatable work to AI; 75% will only allow AI to execute the work with an insurance-specific or governed model. Less than 1% of the market runs fully AI-native operations today.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountHAMILTON, Bermuda — The insurance market is ready to hand repeatable operational work to AI so it can win business it is currently turning away. A full 83% of the market supports AI executing repeatable work. A further majority, 75%, would only allow AI execution with a model built for insurance or governed inside their own rules. Both findings come from a report published today by ISG, the global technology research and advisory firm, and commissioned by mea Platform.The study draws on senior leaders across underwriting, operations, claims, technology and transformation. It covers 20 operational activities, from submission intake and triage to quote generation, bordereaux processing, claims adjudication and compliance screening, across North America, Europe and Asia.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againConsequential decisions, those that create true company distinction, should stay with people, according to 86% of respondents. Insurers want AI running the repeated work and sharpening the consequential work underneath it, so an underwriter or broker reaches a risk decision with better evidence in front of them and reaches it sooner.Operations decide how much business reaches a decisionCarriers estimate that one in nine broker submissions is declined or left unquoted because operations cannot keep up, on risks they had the appetite to write.Where AI is already running in operations, 61% report productivity improvements and 51% faster cycle time, with operating costs expected to fall 16% over two years. While speed and efficiency are major components of the appeal for AI-enabled systems, capacity becomes the bigger prize. Asked what would most improve how brokers see them, 64% named pricing, 52% ease of doing business and 51% AI-driven speed and completeness of submission response.Trust runs through the modelAsked what they would trust for high-consequence underwriting and claims decisions made with limited oversight, 75% chose an insurance-specific model or a governed hybrid. Only 6% would accept a general-purpose model on its own.Governed carries a specific meaning in the research. The system draws on controlled policy wording, endorsements, underwriting appetite and claims guidance. Its permissions separate what it may read from what it may decide. A named person can override it or stop it. And it runs on that institution’s own appetite, thresholds and referral triggers, so the organization scales its existing practice.“Insurers are ready to hand the repeated work to AI, and they will do it on one condition, which is a model that understands insurance and operates inside their own rules. That is a demanding standard and the right one, because the prize on the other side is growth. Carriers are turning away business they had the appetite to write because operations cannot keep up, and winning that back is worth more than any saving.”Martin Henley, Chief Executive, mea PlatformAmbition at 96%, fully AI-native at less than 1%Ninety-six percent of insurers have AI-led redesign on the agenda. Advanced operating posture, where AI is central to workflow design, stands at 13% today against 52% intended within two years. Fully AI-native operation, where AI executes defined processes end to end while people set policy and manage exceptions, sits below 1% today, and 12% expect to reach it within two years.“Insurers know exactly where they want the line between AI and human judgment. Getting there is the part they have not solved. The gap between 96% with redesign on the agenda and the 13% that have reached an AI-centred operating model defines the next two years.”Ashish Jhajharia, Insurance SME and Principal Analyst, ISGAI-native, as the study defines it, means AI executing defined processes end to end while people set policy and manage exceptions. Almost no insurer operates that way today. The work that gets a firm there is operating-model work: decision rights, referral rules and an evidence trail that let a system act on the institution’s behalf. Insurers will only permit that with a model built for insurance and governed inside their own rules, which is why 27% of the market is still evaluating rather than building.mea is the insurance-native agentic AI company. Built by insurance operators, mea provides the operational infrastructure that insurers, brokers, MGAs, and reinsurers use to run their core workflows. Its product suite runs agentic AI across underwriting, claims, finance, and broking, powered by a proprietary domain-specific language model℠ (dsLM) and insurance knowledge graph℠. mea is live with more than 30 clients across 21 countries and has processed more than $450 billion in gross written premium.ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.View source version on businesswire.com: mea Platform. Elliott Bundy, Chief Marketing Officer. Elliott.Bundy@meaplatform.com. +1 (347) 561 0276This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.