Robin Gilthorpe CEO of Earnix Photographer Eli Dassa
Earnix, an Israeli startup that provides of AI-powered decisioning solutions, released its third annual survey that reveals, after years of uncertainty, a majority of insurers plan to implement AI predictive models within two years. The study underscores the increasing reliance on AI within the insurance industry. A significant majority (70%) of insurers are prioritizing the deployment of AI models that can make predictions based on real-time data. While less than a third (29%) currently have such models in place, the industry’s overall adoption of AI is accelerating. Insurers expect AI’s impact to nearly double this year and more than triple in the year ahead, highlighting the technology’s transformative potential for the industry.
The report, based on insights from over 400 global insurance executives, underscores the transformative power of technology in shaping the future of insurance. By analyzing key trends and challenges, the report offers valuable guidance for insurers seeking to capitalize on emerging opportunities and drive innovation.
“This year’s survey reveals the rapid use of AI, a 5–7-month average deployment of rule changes, as well as struggles with modernization,” said Robin Gilthorpe, CEO of Earnix. “Macroeconomic conditions such as inflation, climate change, cybersecurity risk, and uncertain economic conditions will also continue challenging insurers. Earnix is proud to be at the forefront of innovation in the insurance industry, and we look forward to working with insurers to help drive the technological growth the industry is experiencing to meet the modern needs of the market.”
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
Key findings from the 2024 survey include:
More than two-thirds (70%) of respondents expect to deploy AI models that make predictions based on real-time data in the next two years
More than half of respondents (51%) report their company had to pay a fine or issue refunds due to errors in the last year
58% of respondents take more than 5 months to implement a rule change and 21% take longer than 7 months
Insurers still need to move beyond legacy systems and fully modernize their operations, yet 49% admit they are behind schedule
Regulatory compliance is another area of focus and insurers are now investing more time on it than in years past. More than two-thirds (70%) of respondents reported they will spend more time on regulatory compliance next year compared to this year, continuing a two-year trend. The reason for the time increase may be regulatory fines, as more than half of respondents (51%) report their company had to pay a fine or issue refunds due to errors in the last year. As regulators catch up with technological advancements, new guidelines are likely to emerge, requiring insurers to continually update their frameworks. While failure to comply, will continue to become more severe.
“In today’s constantly changing landscape, it is critical for organizations to leverage AI models that provide real-time analytical data, enabling them to increase collaboration and innovation, drive product and business growth, and gain and retain market share,” said Aaron Wright, Director of Strategy at Earnix. “After years of talking about the implementation of this technology, we are finally seeing plans being put into action in this year’s survey.”
About the Report
The survey, conducted by Earnix and Market Strategy Group, LLC in 2024 included 431 global insurance executives from the United States, Canada, Europe, and Australasia. Of those surveyed, 381 were from carriers with less than 20,000 employees and 50 executives from companies with more than 20,000 employees. The participants represented a range of roles and departments, including actuarial/pricing, analytics, product, underwriting, C-Suite, and IT/Technical roles.
Founded in 2001, Earnix declares that it enables insurers and banks to provide “faster, smarter, and safer prices, and personalized products.”
Earnix provides mission-critical composable and cloud-based intelligent solutions across pricing, rating, underwriting, product personalization and telematics. These fully integrated solutions provide ultra-fast ROI and are designed to transform how global insurers and banks are run by unlocking value across all facets of the business. It has been innovating for Insurers and Banks since 2001 with customers in over 35 countries across six continents and offices in the Americas, Europe, Asia Pacific, and Israel. Earnix shareholders include JVP, Insight Partners, IGP, and Vintage Investment Partners.
