Recent use cases highlight the huge transformative potential that artificial intelligence (AI) could have on the insurance industry. However, despite examples of how AI is delivering benefits today and the opportunities for the insurance value chain in the near future, challenges still remain to truly integrate AI into the insurance model. Human involvement and ethical development are key considerations for effective adoption and long-term success. In this article, Swiss Re Institute explores the implications of AI in the insurance industry: looking at the key principles for ethical AI applications, examples of its use in insurance, and discussions on the future landscape.

Amidst the recent excitement of large language model (LLM) chatbots such as ChatGPT, the potential benefits of artificial intelligence (AI), as well as the awareness of the possible flaws, have begun to emerge. Most industries, including re/insurance, now race to better understand the potential of commercialising AI.

In four parts, Swiss Re explores what is important for a successful adoption of AI and where it can play a useful role in the value chain: looking at vital elements that AI applications must fulfil to benefit the insurance industry and the countless possibilities it opens up; what it will take to foster trust in rapid machine advancements; and finally what do these impending business changes mean for future generations working in the insurance industry…