Annual Survey Results
Brokers and SMEs expect that artificial intelligence (AI) will deliver productivity and efficiency gains but introduce new liabilities.
The advent of new technologies is opening up challenges and opportunities for the insurance sector. Eight in 10 SMEs think AI innovations will expose them to new liabilities such as cyberattacks, and they are acting on their concerns by purchasing insurance to cover issues stemming from implementing automation. What’s more, a strong majority of brokers think AI will significantly disrupt traditional insurance distribution models. Yet, not all change is bad; brokers do not think such disruption will be detrimental. Nearly seven in 10 brokers believe AI will enable them to work smarter and offer personalized solutions to clients.
Survey Key Findings
AI Adds Value
Nearly three quarters (73%) of brokers agree or strongly agree that AI is a complement to insurance brokerage service, up from 66% in 2018.
Seventy-eight percent of brokers say advances in AI will make work processes more efficient for their companies.
SMEs Manage Own Risk
Nearly six in 10 SMEs (58%) say they have purchased or plan to purchase insurance to cover issues that may arise when their business implements more automation or AI.
“Hybrid models – where underwriters use machine learning and artificial intelligence to analyze massive amounts of data, such as that acquired by the internet of things – are the most powerful at providing a broader perspective and producing far more accurate risk evaluations. ”Farah Gasmi, Director of AI Products, Argo Group
Most brokers say AI will bring new opportunities
Do you agree that using artificial intelligence for processes like interpreting data and responding to inquiries will make brokers work smarter and offer more personalized solutions to their clients?
SMEs say AI and automation will introduce new liabilities
Do you agree that automation and new artificial intelligence innovations will expose us to new liabilities?