Celent is well-known for our coverage of AI, including GenAI and Agentic AI, in the insurance space. My colleague Keith Raymond has published many reports and blogs on the topic and is an expert in the field.
In my case, I thought I would take a look at AI from a different perspective. AI is having a huge organizational impact on insurers. My recent report AI Culture and Staffing in Insurers focuses on the culture, oversight, and staffing associated with bringing AI into your organization. This report is survey based and includes the results from 60 insurers, both life and P&C.
We address topics including:
- How do you measure ROI or success for your AI projects?
- Who is responsible for AI in your organization?
- Do you have a dedicated AI organization?
- How are you addressing employee concerns about job displacement?
- How are you ensuring fairness in your AI models?
- How large is your AI organization and how are you building it?
- How do you provide oversight to the AI projects?
For example, let’s look at the ownership of AI in the organization, broken down by company size. It is not surprising that the CIO leads the initiatives in the highest number of companies. The surprise, to us, was the number of companies that report their AI initiatives directly to the CEO. This is not that unexpected in smaller companies, but 10% of companies that are over a billion in premium report AI directly to their CIO.
- Tier 1: >$5 billion annual premium
- Tier 2: $1 to $5 billion in annual premium
- Tier 3: $500 million to $1 billion in annual premium
- Tier 4: $100 to $500 million in annual premium
- Tier 5: <$100 million in annual premium
Another example from the report is staff ramp up. We looked at what percentage of their AI resources were hired in the last year:
We can see that all sizes of insurers are beefing up their AI teams. Since this is in percentages, obviously hires for a smaller current team have a large impact, so larger companies are likely hiring more quantity, but it is great to see that insurers of all sizes are continuing to grow their AI teams.
These are just examples of insights in this latest report. It is clear that AI is the future and that companies are still trying to figure out how to build it, integrate it into the organization, and manage it fairly.
For more information, and all the data and charts, download the report at AI Culture and Staffing in Insurers.
The report is only available to Celent customers and to members of the media. For more information, feel free to reach out to be at tscales@celent.com.
Tom Scales
