Xceedance says the insurance industry may be required to reinvent working procedures to achieve maximum artificial intelligence (AI) output, as it outlines key challenges around the technology.

In a white paper, the insurance consulting and technology group flags an increased need to focus on generative AI.

“Many insurers have achieved great results from machine learning and automating tasks in claims and underwriting. But, without taking the next steps, they’ll fail to realise AI’s full potential.”

Xceedance says companies face a challenge getting “comfortable with computers making choices, from level and type of coverage to claims recommendations”.

Successful organisations will utilise new technologies to revise processes “from the ground up”.

“Technology raises both challenges and opportunities,” the paper says. “Insurance workflows, many of which were designed more than 60 years ago, must be reinvented. Underwriting questions, which insurers ask before providing quotes or policies, haven’t changed significantly in decades.”

The paper says AI will unlock the “power of one” and allow for quick analyses of large volumes of data, permitting insurers to assess more claims individually.

“The good news is there is no shortage of data sources available to insurers and more are being created every day, from telematics to geospatial data. The challenge for insurers will be integrating data sources into AI platforms so the information can be used for decision-making.”

In December, Xceedance announced it was looking for industry collaborators to explore case examples as part of its Generative AI Centre of Excellence.

Click here for Xceedance’s white paper.