S&P Global Ratings surveyed 121 insurers on AI adoption. Insurers expect 6-7% efficiency gains and 4-5% revenue improvements by 2028. Cost savings over 3% may rise from 16% to 80% by 2028. AI budgets will more than double in three years. Nearly all insurers have or are developing AI governance frameworks. Two-thirds maintain AI model inventories. S&P says governance maturity will separate winning insurers from laggards. Weak governance risks model inaccuracies and regulatory breaches. EIP’s CEO says AI should not decide claim payments without human oversight. EIP uses AI for information gathering but keeps payment decisions rule-based. The distinction in claims process influence is the key governance test.
What it unlocks
Distinguishing AI use in claims information gathering from AI use in payment decisions.
- 121 insurers surveyed
- 6-7% efficiency gains by 2028
- 4-5% revenue gains by 2028
- 80% expecting >3% cost savings by 2028
Sources