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The integration of Artificial Intelligence (AI) and machine learning has already brought transformative opportunities across the rapidly evolving landscape of the insurance industry. As data generation has surged and competition intensified, insurers have recognised AI’s game-changing potential as a tool for analysing expansive volumes of data with unprecedented speed and accuracy. With data generation occurring at such high velocity, insurers turned to AI as a series of experiments to make sense of this complexity and respond to the ever-increasing external shocks in the insurance market. But with expanded adoption comes a swathe of new and pressing concerns, and with AI advancements showing no signs of slowing, the insurance industry needs to consider the technological solutions that will tackle both the problems of today and the challenges of tomorrow.

It’s hardly a secret that data is the lifeblood of the insurance sector. Some experts predict there will be over 30 billion connected devices worldwide by 2025, and the resulting explosion of data, coupled with huge leaps forward in the capabilities of AI and machine learning, has already begun having an effect on the insurance industry. 

We have seen Lemonade process a claim in only 2 seconds, and companies like Roots Automation exploring the use of Generative AI to improve customer service. But despite these advancements, many insurers still need to improve the bottom line as they experience a deceleration in the release of prior-year loss reserves and watch underwriting performances deteriorate in a post-Covid world. Access to data and the availability of new technology are not the issues, so why are so many insurers fundamentally failing to leverage new technology to tap into the potential of their data?

Generative AI (GAI) has been firmly at the centre of discussion ever since it was popularised by the launch of ChatGPT in November 2022. Although the insurance sector, with its focus on cost, has generally reacted with interest and excitement to the advent of Generative AI and Large Language Models (LLMs), there are limitations to the technology that represent significant obstacles to industry-wide adoption.  

In February 2023, we announced the launch of the Aioi R&D Lab - Oxford, a joint venture between Mind Foundry and our partners Aioi Nissay Dowa Insurance (ANDI) and Aioi Nissay Dowa Europe (AND-E).  This is the first of its kind research lab, so naturally you may be thinking… What is it exactly? In this article we’ll tell you all you need to know.