Insurance-industry watchers can expect to see an uptick in investment into artificial intelligence (AI) tools, the insurtech firm Xceedance predicted in its recent Insurance Trends 2024 report. Here are three trends the company references to bolster its analysis:
  • Annual growth rate of premiums has ranged between six to eight percent since 2018.
  • Surplus lines have seen 19.2% growth, and direct premiums written in 2022 set a record.
  • Costs will remain high until inflation is under control, but, at the same time, insurers need to remain innovative and competitive.
"Technology is changing rapidly," Xceedance CEO Arun Balakrishnan said in a recent interview with PropertyCasualty360. He added that insurtech trends and tools have been top-of-mind for executives and customers alike for nearly a decade, but generative AI is shifting the software-as-a-service (SaaS) landscape more quickly than previous technologies. "The AI movement is massive," Balakrishnan said. "I think adoption will happen at a very fast rate." Underwriting, claims processing, customer service, and fraud detection are all areas where computer learning and automation can make a positive impact. However, these advancements come with challenges that include staffing and training, regulatory compliance, security, and effective integration, all of which are critical to efficiently utilizing AI technologies. The slideshow drills down on the AI challenges facing insurance businesses, according to Xceedance. See also:
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