Industry leaders are predicting a significant transformation in the global insurance business model, largely driven by advancements in artificial intelligence (AI) that will enhance skill sets and risk management processes.

Mohammad Khan from PwC noted that AI will shift the insurance industry's culture from reactive processing to a more predictive approach, enabling continuous risk and claims management.

As AI technology progresses, specialty insurers are expected to custom-build products tailored to the specific risks of their customers.

Föhner from Swiss Re explained that Generative AI (GenAI) is crucial for efficiently processing unstructured data, which makes up 80% of the data necessary for underwriting and claims management.

The use of GenAI significantly speeds up underwriting and claims processing, reducing tasks that previously took hours to mere seconds.

Despite the efficiency brought by AI tools, both Dehmann and Föhner emphasized that the final decision-making authority remains with human underwriters, highlighting the collaborative nature of AI and human professionals.

They also stressed the importance of governance in AI usage, ensuring that AI serves as an assistant rather than replacing human judgment.

Dehmann pointed out the necessity for education and training to adapt to the changes brought by AI, particularly in the context of Agentic AI and GenAI.

He further emphasized that the most substantial transformation in the insurance sector will revolve around skills and the need for upskilling, as every role will be impacted by AI.

Föhner highlighted the importance of human validation of AI-driven results, likening the management of AI to operating a fast car that requires specialized skills.

Overall, the sentiment among industry leaders is that while AI technologies are increasingly being adopted, the insurance industry is still in the early stages of fully integrating these advancements.

Khan provided clarity on the distinction between Generative AI, which creates new content, and Agentic AI, which operates autonomously, indicating that the insurance industry is still exploring these technologies.