AI is a top priority, but preparation lags behind for insurers

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Artificial intelligence is a top technology and innovation priority for more than half of insurance executives, according to Global Priorities Survey 2024 published by The International Insurance Society.

Inflation was the main issue for the third year running. Product innovation, cybersecurity, targeting new and underserved customer segments, and increasing consumer trust and engagement are also a focus for IIS survey respondents.

However, more than a third of executives report that their companies are not ready for AI. There are also concerns about the industry’s ability to adapt to new technologies and reskill the workforce.

Most tech jobs are likely to be affected by AI, according to Transformation Opportunity of AI on ICT Jobs, which found that 92% of the jobs analyzed would undergoing a transformation due to AI.

The report was released by Cisco and the AI-Enabled ICT Workforce Consortium, including Accenture, Google, IBM, Microsoft and SAP.

Certain skills will be more important, including AI ethics, responsible AI, AI literacy, agile engineering, architecture of large language models, and more, according to the report. Some job functions will become less relevant, such as creating basic programming content and managing data.

Francine Katsoudas, executive vice president and people, policy and purpose, Cisco, said in a statement: “AI is accelerating the pace of change for the global workforce, presenting a powerful opportunity for the private sector to help improve and reskill workers for future. .”

Climate change also continues to be a priority for executives, with 60% saying it was a priority for the year, according to the IIS survey. But about a quarter of respondents said they are not prepared to deal with the increasing severity and frequency of natural disasters.

As previously reported by Digital insuranceAon’s Global Catastrophe Recap report reveals that U.S. natural disaster claims accounted for 80% of global insured losses, totaling nearly $46 billion in the first half of 2024.