Toronto, Ontario — Insurers are adopting technology like generative artificial intelligence as a leading strategy against industry challenges, according to a new report from Reuters.
The report, The Future of Insurance in Canada: Top Technology Trends in 2024″ indicates a majority of Canadian insurance representative respondents have already invested in “established technologies,” with 79 percent saying they’ve invested in data analytics and 72 percent stating they’ve invested in automation. The report results are based on a qualitative research process and a survey of senior executives at Canada–based insurance originations conducted in April 2024.
The report further notes that exactly half of Canadian insurers’ responses indicate their organizations are planning to adopt automated technologies like generative AI. Thirty-three percent of Canadian insurer respondents indicate their companies are testing scenarios where AI can be used, compared to just 22 percent globally. In total, 37 percent of Canadian survey respondents indicated their organization has used generative AI in test-use cases, evaluating vendors or had even moved on to full-scale implementation.
According to Reuters’ predictions, generative AI will be the top trending investment by 2027, followed by investments in machine learning.
Although insurers agree AI can play a role in the insurance sector, nearly two-thirds (63 percent) of respondents indicate that automated claims management systems are difficult to implement.
There are many knowledge gaps and delays when introducing such technology, too. Reuters’ report states more than half of its respondents highlighted delays in technology implementation, with a further 46 percent indicating a lack of understanding of the industry and/or business on the vendor side.
Reuters concluded that the data suggests “some technology investments will require updated or tweaked processes internally to optimize them.”
“As AI technologies, particularly generative AI, gain traction in the insurance industry, it’s essential that investments in these areas are supported by strong governance frameworks and the adequate training of our people,” said Markus Glese, chief compliance officer for Zurich. “While AI has the potential to revolutionize operations, its ethical and effective implementation depends on ensuring that employees are well-equipped to manage and utilize these advanced tools responsibly, maintaining trust and meeting regulatory standards.”
To read the full report, click here.
