Despite a majority of insurance companies integrating artificial intelligence (AI) into their operations, the benefits have yet to significantly enhance customer experiences, according to a new report by Genpact in collaboration with Amazon Web Services (AWS).
The study, which surveyed global senior insurance executives and U.S. customers, found that while 69% of insurers have adopted AI, only 36% of U.S. customers report an improved digital experience. This gap underscores a persistent challenge in scaling AI to meaningfully improve client interactions and support long-term business growth.
Adil Ilyas, Global Business Leader for Insurance at Genpact, emphasized the disconnect. “While many insurers have made strides in adopting AI, significant opportunities remain to scale its impact. By aligning AI strategies with customer expectations and operational goals, insurers can drive innovation, build trust, and create a more resilient future for their businesses,” he said.
The report points to a critical mismatch between internal technological adoption and external outcomes. One notable finding is that trust in AI-generated business insurance quotes remains low. About 59% of consumers still prefer speaking with live agents—especially during times of crisis—indicating that digital solutions have not yet earned customer confidence.
Furthermore, only 8% of industry respondents believe AI offers a competitive advantage in areas such as monetization or business growth, suggesting that many insurers are not fully leveraging the capabilities of AI.
Several systemic barriers hinder broader AI implementation. These include not just technological complexity, but also governance issues (cited by 49% of respondents), data privacy concerns (62%), and regulatory inconsistencies across jurisdictions (42%). These factors highlight the limitations of generic, one-size-fits-all strategies and point to the need for more tailored, risk-aware AI deployments.
Talent also poses a critical hurdle. While insurers are investing in training and partnerships, only 2% of executives report that their teams are mostly fluent in AI. A significant 69% admit that only a few employees possess the necessary AI knowledge, revealing a stark skills gap that could limit the industry’s future scalability.
Yasir Andrabi, Agentic AI Leader for Insurance at Genpact, said the industry is at a pivotal juncture. “The report highlights an industry poised for transformation, where scaling AI effectively can redefine customer experiences and build lasting trust,” he said. “With decades of experience collaborating with global insurers, Genpact is uniquely positioned to guide carriers through this shift.”
To address these challenges, the report outlines a six-point strategic blueprint for successfully scaling AI in the insurance sector. The approach includes strengthening data infrastructure, building strategic partnerships, empowering employees, designing systems for scalability, balancing governance with risk management, and prioritizing measurable business outcomes.
This framework aims to help insurers unlock the full potential of AI, improve business insurance coverage strategies, and deliver more trustworthy insurance solutions in an increasingly digital market.
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