Data readiness is the biggest challenge in getting value from AI reported 78% of global life insurers.
Australia was top in terms of data readiness with 38% of carriers being “Optimal”, which in Latin America, 82% of carriers were “Progressive”.
However, 66% of US life insurance carriers feel unready for AI, with organisational alignment as the strongest dimension and sourcing & integration as the weakest.
This is according to research from digital solutions provider Equisoft, LIMRA, and Universal Conversion Technologies (UCT).
In addition, most firms considered themselves to be “progressive” in terms of their data perceived readiness, but 46% of respondents claimed they were not ready to implement AI.
87% of respondents stated they were currently using AI in some operational areas like underwriting, operations and new business.
“Data is foundational to everything a carrier does, now and in the future. But carriers aren’t necessarily data ready for AI because they haven’t yet considered a wholistic view of their data practices. Data quality and integrity are still work-in-progress,” said Mike Allee, president of UCT. “While insurers have done a good job building their data infrastructure and are making progress on aligning data strategy with business objectives, many have yet to realize AI’s vast potential because their data practices aren’t fully aligned with their AI strategy and therefore aren’t fully mature. You can’t be AI ready if you’re not also becoming data ready.”
High-quality data is the bedrock of any AI initiative, and without it, the outputs of AI systems will be fundamentally flawed. Bad data leads to bad AI,” said Kartik Sakthivel, Ph.D., vice president & chief information officer at LIMRA and LOMA. “It is imperative that organisations prioritise data governance, quality, and integrity to harness the full potential of AI and drive meaningful business outcomes.”
“Data readiness is the biggest AI challenge for global life insurers” was originally created and published by Life Insurance International, a GlobalData owned brand.
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