Group protection carriers are investing in AI but data quality now decides who leads. Legacy systems often store member records in ways that block AI-driven analysis. An AM Best survey found data readiness is the top barrier to AI deployment in insurance. Only 5 to 10 percent of carriers consistently gain value from their data investments. Tim Stoves of Lumera says AI will standardize and data will become the real differentiator. Clean member data lets carriers spot claims trends earlier and price products more accurately. Fragmented data produces faster but not better outputs. Regulators are increasing scrutiny on AI-driven decisions and the data behind them. Advisors now judge carriers on how well they know their members.
What changed
AI tool availability was seen as the main competitive edge.
What it unlocks
Carriers can build precise risk assessments and price group products more accurately.
- 5–10% of carriers capture value from data and tech
- 150+ insurers surveyed by AM Best
What you need to act on it
- clean, connected, contextualized member-level data
- modern data infrastructure
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