Last year, Georgina Compton, Manager, Member Intelligence, and Nick Dwyer, Manager, Financial Research, sent out a survey to ICMIF members, asking them about their use of artificial intelligence (AI), their plans for the future, and any concerns they have about the use of AI in insurance. Now, almost a year later, the two reflect on the survey results and how ICMIF is supporting members in their AI journeys.
AI has long played a role in the insurance industry, from machine learning and fraud detection to underwriting and claims automation. However, recent advancements in AI technologies, such as the release of ChatGPT in November 2022, have made generative AI mainstream and rapidly expanded its capabilities, bringing it to the forefront of industry discussions and strategic planning.
As AI continues to reshape industries worldwide, the insurance sector is navigating both new opportunities and new challenges. For cooperative and mutual insurers, this transformation presents unique considerations in balancing innovation with member-driven values. To gain deeper insights into the current state of AI adoption among its members, the International Cooperative and Mutual Insurance Federation (ICMIF) conducted a comprehensive survey in April 2024.
The response to the survey was overwhelming, underscoring AI’s growing prominence in strategic discussions. A total of 52 organisations participated, providing a robust dataset that sheds light on trends within the cooperative and mutual insurance sector. The findings offered valuable insights into the role of AI in our sector and highlighted the growing interest in AI research.
Key survey findings
The survey revealed that 62% of respondents are already leveraging AI within their operations, while an additional 19% planned to implement AI in the coming year. The primary drivers for implementing AI were improving operational efficiency, enhancing customer experience, and increasing profitability, in that order.
Despite these benefits, members also highlighted key challenges, particularly data quality issues, a lack of skilled personnel, and cost concerns. Ethical concerns were the next most prominent challenge stated, followed by regulatory compliance, whilst some respondents also noted the ecological impact of AI.
Thirty-nine percent of respondents believed mutual/cooperative insurers face additional ethical and regulatory challenges compared to other insurers. Transparency in AI decision-making, bias mitigation, and ensuring solidarity within mutual models were key themes raised by participants.
Looking forward, 67% of respondents anticipated AI becoming a more integral part of their operations. Forty percent believed AI technologies would help support new business models, and 38% expected AI to help them expand into new areas. AI’s role in improving employee training, personalising products, and automating business processes was also expected to increase.
The survey also collected real-world examples of AI implementation, showcasing practical benefits detailing how and where AI is poised to play a crucial role in the future of mutual and cooperative insurance. ICMIF members can access the survey report in its entirety on the ICMIF Knowledge Hub.
How ICMIF is facilitating knowledge-sharing around AI
In 2024, ICMIF facilitated multiple knowledge-sharing opportunities for members to explore the evolving role of AI in the insurance sector. One of the most significant moments came at the ICMIF Biennial Conference in Buenos Aires, where several presenters spoke on AI. A standout presentation, delivered by representatives of Microsoft and ICMIF Supporting Member EY, explored Insurance in an AI-infused fourth industrial age. This session examined the evolving role of partnerships and technology, particularly generative AI (GenAI), in transforming the insurance and financial services industries as AI-powered solutions enhance underwriting, claims processing, and customer interactions.
Beyond the Conference, ICMIF has fostered a number of member-to-member connections around the topic of AI, encouraging direct collaboration and exchange of insights. The Federation also hosted dedicated webinars sharing practical AI applications for mutuals, case studies from members who have successfully implemented AI, and thought leadership articles from ICMIF Supporting Members, ensuring our members have the tools they need to thrive.
ICMIF has also hosted virtual meetings where members could discuss AI with their peers. A Young Leaders Forum session on AI and emerging business models was the most attended forum session of the year, showing that interest in AI extends beyond senior leaders and decision-makers, to the next generation of industry professionals.
As AI continues to evolve, ICMIF remains committed to helping members navigate this transformation. In 2025, ICMIF will continue facilitating member connections and sharing even more strategic content on AI and beyond with members. ICMIF members have access to strategic intelligence and AI-related insights on the ICMIF Knowledge Hub.
For more information about the ICMIF Knowledge Hub, contact Georgina [email protected].
