Insurance companies lead AI adoption

Written by Adam Cadle

18/11/2024

Insurance companies are the leader in AI adoption when compared to other institutional investors, research published by Schroders has revealed.

In its Global Investor Insights Survey: Insurance Companies, 71% of insurance companies felt positive towards the integration of AI and other disruptive technologies in relation to internal research and portfolio construction by asset managers. This compared to 66% among pension funds, 57% among family offices, 60% among endowments and foundations, and 60% among official institutions.

Sixty-three per cent of insurance companies were positive about AI integration in relation to internal operational processes within the organisation, and 65% about client communication/client service by asset managers.

Fifty-eight per cent said they were positive about AI integration in relation to client engagement/marketing by asset managers.

Pension funds, family offices, endowments and foundations, and official institutions were all more positive about the integration of AI in investment research and portfolio construction internally, however.

Schroders head of fintech, innovation and AI strategy, Charlotte Wood, said: “The survey highlights the growing role of AI in insurance companies’ internal processes and decision-making. Many insurance companies are increasingly leveraging AI to enhance operational efficiency, with applications ranging from automating routine tasks to improving underwriting accuracy. The survey shows that a significant number of insurance companies are also using AI-driven analytics to gain deeper insights into risk assessment, helping them make more informed investment decisions.

“AI’s ability to process large datasets at unprecedented speed is reshaping portfolio management strategies as well. Insurance companies are applying AI tools to optimise asset allocation, identify emerging risks, and adjust portfolios dynamically in response to market changes. This is particularly valuable in today’s volatile market environment, where real-time data and predictive analytics can offer a competitive edge.”

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