The 2024 Earnix The industry trends report found that the insurance sector faces pressing challenges related to AI adoption, modernization of existing systems and compliance pressures.
Earnix’s survey of 431 insurance executives shows that 70% of insurers plan to deploy predictive AI models within two years, but less than 30% have fully implemented it. AI today.
This gap highlights the slow progress in the transition from traditional systems to advanced technologies.
Even as insurers recognize the potential of AI for real-time decision-making, its integration remains a challenge, as many companies cite existing technologies as the main barrier to transformation.
Compliance pressures continue to grow, with insurers around the world prioritizing regulatory investments. European and Australian insurers are reporting increased compliance concerns, driven by strict regulations such as Solvency II.
Nearly half (49%) of insurers have incurred fines for compliance failures, prompting renewed attention to regulatory tools and frameworks.
The Earnix report highlights insurers’ struggles with legacy infrastructure that hinders collaboration and innovation, with 47% of executives citing siled systems as a significant barrier.
Insurers also face long implementation times, with 58% saying it takes them more than five months to make rule changes, a delay that puts them at a disadvantage in the face of market demands. Updating underwriting rules remains complex, with only 30% able to make changes within three to four months.
Insurers are increasingly aware of these challenges and view modern technology as a way to remain competitive.
Read the full report here.
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