Data preparation is the biggest challenge in getting value from AI reported by 78% of global life insurers.
Australia ranked highest in terms of data preparation with 38% of “Optimal” carriers, while in Latin America, 82% of “Advanced” carriers.
However, 66% of US life insurance carriers feel they are not ready for AI, with organizational alignment as the strongest and discovery & integration as the weakest.
This is according to research from digital solutions provider Equisoft, LIMRA, and Universal Conversion Technologies (UCT).
Additionally, most companies considered themselves “advanced” in terms of their data readiness, but 46% of respondents said they were not ready to implement AI .
87% of respondents said they were currently using AI in some operational areas such as underwriting, operations and new business.
“Data is fundamental to everything a carrier does, now and in the future. But data carriers may not be ready for AI because they have not yet considered a holistic view of their data practices. Data quality and integrity is still a work in progress,” said Mike Allee, president of UCT. “While insurers have done a good job building their data infrastructure and making progress in aligning data strategy with business goals, many have yet to realize the huge potential of AI realize because their data practices don't fully match their AI strategy and therefore they don't. fully matured. You can't be ready for AI if you're not also ready for data.”
High-quality data is the foundation of any AI initiative, and without it, the results of basic AI systems will be 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 organizations prioritize 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 created and originally published by International Life Insurancea brand owned by GlobalData.
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