In a recent interview on TheReinsurance Podcast, popular insurance influencer HardMarket expressed concerns about the insurance industry’s hesitancy towards adopting artificial intelligence (AI) technology. Known for its conservative and risk-averse nature, the insurance sector finds itself at a crossroads where it must decide between clinging to outdated methods or embracing the integration of new AI systems.
HardMarket, who preferred to remain anonymous, highlighted the industry’s fear of AI and its impact on established norms. This fear stems from a reluctance to accept change and face new challenges. The influencer noted that AI is already driving significant changes across various aspects of the insurance industry, including underwriting, claims settlement, customer support, and fraud detection.
However, despite the potential benefits and efficiency that AI can bring, professionals in the industry remain concerned about how it may disrupt traditional workflows. This fear, according to HardMarket, could hinder technological innovation within the insurance sector. While insurtech startups are eagerly adopting AI to replace outdated methods and enhance customer experiences, established insurance organizations risk falling behind if they fail to seize the opportunities presented by the digital revolution.
The insurance industry’s response to AI has been mixed. Some organizations have embraced AI and developed technological solutions for process automation and risk management. However, there are still others that exhibit insecurity and resistance towards AI.
HardMarket firmly believes that AI will eventually find its place in the insurance market. The influencer stressed the importance of not curtailing technological advancements, but rather overcoming the fear and resistance to innovation from the outset. By incorporating AI-based solutions, the insurance sector can not only accelerate operations and improve risk management but also adapt to the evolving needs of customers in today’s digital-first world.
