{"id":27129,"date":"2026-04-01T10:17:00","date_gmt":"2026-04-01T08:17:00","guid":{"rendered":"https:\/\/www.thebrokernews.ch\/billions-invested-without-effect\/"},"modified":"2026-04-01T10:20:03","modified_gmt":"2026-04-01T08:20:03","slug":"billions-invested-without-effect","status":"publish","type":"post","link":"https:\/\/www.thebrokernews.ch\/en\/billions-invested-without-effect\/","title":{"rendered":"Billions invested without effect"},"content":{"rendered":"
Billions invested without effect.<\/span><\/div>\n\n

The insurance industry is investing heavily in artificial intelligence, but according to a new study by Simplifai<\/a>, measurable effects have largely failed to materialize. There is a clear gap between ambition and operational implementation. <\/strong><\/p>\n\n

The global insurance industry is investing billions in AI initiatives without this being significantly reflected in key figures. According to the “Ultimate AI Strategy for Insurance” study, 83% of insurers invest at least five million US dollars in AI every year, with 14% even investing more than 50 million. Nevertheless, less than 15 percent report measurable improvements in the combined ratio, cycle time or loss ratio. <\/p>\n\n

The pressure to act is high: insurers in the US and Europe generated premiums of around 3.3 trillion US dollars in 2025, while combined ratios of around 99% leave little room for profitability. AI has long been seen as a beacon of hope for efficiency gains, but the reality has so far been sobering. <\/p>\n\n

“Pilot Purgatory” slows down the industry<\/strong><\/h6>\n\n

Although 99% of insurers now have initiatives in the area of generative AI, only around 42% have even used it productively in individual functions. Their use is mainly focused on chatbots in customer service or document summarization, all applications with limited strategic impact. <\/p>\n\n

The actual levers, such as end-to-end automation of underwriting or claims processes, remain largely untapped. The study identifies three key hurdles: the lack of a link between AI projects and business results, regulatory uncertainties, for example due to the EU AI Act, and complex legacy systems in policy and claims platforms. The result is a state that the authors refer to as a “pilot purgatory”, an endless loop of tests with no sustainable business value. <\/p>\n\n

Why some insurers are significantly more successful<\/strong><\/h6>\n\n

A smaller group of insurers, on the other hand, is making clear progress. The decisive factor here is less the technology itself than its strategic embedding. Successful companies focus on business processes and target figures, not on technological possibilities. They implement AI end-to-end along complete workflows and integrate governance structures from the outset. <\/p>\n\n

At the heart of this is the “agentic AI” approach: systems that not only generate content, but also plan, control and execute entire process chains. In practice, this means, for example, the automated processing of a claim from initial notification to payout or the complete processing of an underwriting application, in each case under defined human supervision. <\/p>\n\n

Insurers pursuing this approach report significant efficiency gains, shorter throughput times and increasing automation quotas while at the same time complying with regulatory requirements.<\/p>\n\n

Competitive advantages are distributed quickly<\/strong><\/h6>\n\n

The study warns that the gap between leaders and laggards is widening rapidly. Rising claims costs, natural disasters with projected losses of up to USD 145 billion and slower premium growth are adding to the pressure. At the same time, insurtechs are entering the market with modern IT architecture and automated processes. <\/p>\n\n

According to the study, insurers who rely on production-ready, workflow-integrated AI now will secure lasting advantages in terms of cost structure, claims ratio and customer satisfaction. Those who act too late are unlikely to be able to catch up. <\/p>\n\n

Strategy instead of technology as a success factor<\/strong><\/h6>\n\n

The key finding of the analysis: the insurance industry does not have a technology problem, but an implementation problem. The key lies in clearly defined business processes, measurable targets and the consistent integration of AI into operational processes. Only in this way can ambitious pilot projects actually generate economic success. <\/p>\n\n

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Download study<\/a><\/div>\n<\/div>\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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