Analysis by GlobalData Highlights AI's Role along the Insurance Value Chain
The insurance industry is witnessing a significant shift as artificial intelligence (AI) adoption extends beyond traditional areas like underwriting and risk profiling. According to a recent GlobalData poll conducted in Q3 2025, the growing areas of AI adoption in the insurance value chain include customer service, claims management, and product development.
Customer service saw a 6.2 percentage point increase in recognition as the most positively impacted area by AI, with 17.6% of respondents citing it as a key area of improvement. This reflects a shift towards enhancing customer interaction and service quality.
Claims management, although experiencing a slight decline in adoption rates, remains a notable area, with 20.3% of respondents citing it as positively impacted by AI. The latest trends in AI are also highlighted by GlobalData in the survey, with claims management being the second most positively impacted area, customer service being the third, and product development seeing a significant increase in recognition.
Product development more than tripled in recognition, going from 1.9% to 7.2%. This indicates a growing interest in using AI to improve and innovate insurance products.
Charlie Hutcherson, Associate Insurance Analyst at GlobalData, comments that the results indicate that insurers are expanding their AI use cases across the value chain. Hutcherson also notes that the shift in focus towards other areas, particularly customer service, reflects a more mature and diversified approach to AI in the insurance industry.
The latest report from GlobalData indicates that underwriting and risk profiling is still the most positively impacted area of the insurance value chain by AI, with 45.8% of respondents identifying it as such. However, since 2023, the proportion of industry insiders selecting underwriting and risk profiling has declined by 9.6 percentage points, suggesting growing momentum for AI adoption in other areas.
GlobalData, a leading data and analytics company, believes that AI has been instrumental in shaping the insurance industry for the past few years, enhancing risk analysis and streamlining claim processing workflows. The New Zealand general insurance market is expected to grow from NZD8.4bn (US$5.8bn) in 2018 to NZD10.9bn (US$7.8bn) in 2023, with general insurance being the major contributor to this growth.
In conclusion, the insurance industry is evolving, with AI playing an increasingly important role. Insurers are diversifying their AI use across the value chain to include customer service and product innovation, while still recognising the importance of underwriting and risk profiling. The latest GlobalData poll provides valuable insights into these trends, highlighting the continued positive impact of AI on the insurance industry.
- With underwriting and risk profiling still leading in AI impact, the insurance industry is expanding AI use cases to include events like customer service and product development, demonstrating a shift towards more innovation.
- The findings from the recent GlobalData poll show that finance business is increasingly recognizing the benefits of AI technology, particularly in areas such as claims management and product development.
- Compliance with regulation is crucial in the adoption of AI in insurance, ensuring that technology advancements align with industry standards.
- The growing interest in AI in the insurance industry is driven by insurtech companies that aim to revolutionize traditional insurance practices and services.
- Opinion leaders like Charlie Hutcherson of GlobalData believe that AI has significantly impacted the insurance industry, particularly in the areas of risk analysis and claim processing, but the future lies in understanding and adapting to the innovations shaping the industry.
