Generative AI: A Double-Edged Sword for the Insurance Industry

A recent study by the IBM Institute for Business Value reveals a divergence between the priorities of insurers and their customers regarding the use of generative AI. While industry executives focus on customer experience, customers seek personalized risk products and insights. The study, based on a survey of 1,000 C-level executives from the insurance industry across 23 countries and 4,700 insurance customers from nine countries, highlights that the industry has made progress in AI-driven chatbot improvements. Mark McLaughlin, IBM Technology Director for Global Insurance, emphasizes the importance of a comprehensive governance framework to ensure transparency, data privacy, and explainability. Significant opportunities arise to better match customers with suitable products. IBM positions itself as a leading provider in AI, hybrid cloud architecture, and security solutions for the global financial services sector. With a wide range of services and effective collaboration with fintech partners, IBM supports financial institutions in their digital transformation. The study's results are based on a methodological survey conducted in collaboration with Oxford Economics. Simultaneously, customer surveys were conducted to capture the alignments and differences in views between executives and customers regarding the benefits and concerns of generative AI.