29 Oct 2024
The future of insurance – the hopes and fears of AI
In this GFT blog, Dean Clark (Chief Technology Officer) looks ahead to the future of the insurance sector with a particuoclar fus on the potential role of AI technology.
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Dean Clark
Chief Technology Officer
blogAbstractMinutes
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2024
Insurance
AI
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If we look in the rearview mirror, the last few years have really not been particularly good for the insurance sector. The fact that combined ratios are over 100% means that the underwriting performance has not been good and that businesses are effectively making a loss purely from the underwriting and the premiums that they are collecting.
Of course, there is also investment income to consider as well, which is something that companies have been relying on. However, the fact that interest rates have been quite low for a very long time is also something that undermines a long-term and sustainable business. These types of strategic effects is where the whole conversation has been going in the insurance industry for quite some time.