How will AI impact the bottom line?

As artificial intelligence (AI) continues to dominate the reinsurance industry, employers are scrambling to understand the impact of technological advancements on their bottom lines.

According to a study by Precedence, the global AI insurance market was estimated at $4.59 billion in 2022 – and is expected to reach $79.86 billion in 2032. From customer-facing chatbots to analytics platforms risks, the impact of these new technologies is only growing. with time. But AI is not only changing customer expectations of insurers, it is also revolutionizing important internal practices.

“I see (AI and technology) affecting us in two main ways,” said Katie Rudd (pictured), senior vice president and head of UK analytics at Acrisure Re. “The first will be driven by our customers and how they innovate new products, invest in technology and adopt third-party models. We are seeing a strong desire (customers) to invest more in capturing and leveraging the data they already have. So it’s about bringing together the underwriting systems and the claims systems – putting that infrastructure in place.

The second item mentioned by Rudd relates to internal advancements within the Acrisure Re analytics team, led in London by Rudd as part of the Global Analytics Council – which reflect a wider industry trend towards improved analytical capabilities . Moving from traditional tools like Excel to more advanced programming languages ​​means a commitment to staying on the cutting edge of analytical techniques.

“Everyone is very excited about the technology and how we can use it,” Rudd said. “(It’s about) helping us integrate technology into our daily workflow to improve the way we work. Our parent company Acrisure recognizes the importance of AI in the re/insurance industry and, since 2018, has invested heavily in acquiring AI-driven platforms and companies.

Rudd’s leadership is part of the restructuring of Acrisure Re’s analytical management team. This strategic shift from a centralized global chief actuary model to a more decentralized regional leadership approach, known as the name Global Analytics Council, has made significant improvements.

“It has also allowed us, as leaders in our individual fields, to connect our team members with each other and ensure that they also have an open dialogue,” she told Re-IB. “Strategically, it makes sense to look at your structures and make sure they fit the way you want to do business. Everything can be really positive if you have someone working for you.

Balancing technical and strategic aspects of analysis is a hallmark of Rudd’s role. Close alignment between the analytics and brokerage teams enables meaningful conversations combining technical expertise and a client-centric approach.

“The fact that we are so aligned between the two teams means that everyone on the analytics side has a very good understanding of brokerage,” she said. “And also, the brokers are very technically competent. We can have very meaningful conversations between the two groups – the organization helps us balance our technical perspective with customer focus.

This “team effort” is something Rudd naturally prides herself on at Acrisure Re – and it’s something she, alongside Global Analytics management, facilitates with regular global gatherings for all employees across analysis.

“It’s something we find really valuable,” Rudd said. “Spending time together is priceless. We all get together for a few days and it’s a time to share what you’ve been working on and discuss any kind of new techniques you hear about in the market. We can set aside time to talk about the model developments we want to make, and then build the team to do it.

“(It’s) about making sure we have time to share knowledge and then time to draw concrete conclusions from the meeting to ensure we’re all continually pulling in the right direction.” Best practices are implemented within the team – so everyone is aware of the strategy and has the energy to work together in the future.