Article ID: 528ac3fdb095cfaf73fe9f1717edc1c151570f377a87bbb7a9572dc85a97152b
Source ID: secondary:insurancetimes.co.uk
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‘Insurance doesn’t have an AI problem, it has a strategy execution problem,’ says chief executive The global insurance industry is investing in artificial intelligence (AI) programmes and initiatives at “record levels”, but getting “almost nothing” back. This is according to a new report from insurance technology and automation firm Simplifai, released today (1 April 2026), which suggested that many firms were caught in a phase of “pilot purgatory”. The analysis, based on data from McKinsey, EY, Deloitte and Swiss Re, found that while 99% of insurers now have generative AI initiatives in place and 83% of carriers were spending more than $5m (£3.76m) a year on such initiatives, only 42% had deployed AI into active business functions. Worse still were the returns that were seen on such initiatives. Indeed, fewer than 15% of insurers reported a measurable impact on combined ratio, cycle time or loss ratio from the technology implementations. Fundamental disconnect Simplifai said that the report had identified a “fundamental disconnect between AI investment and AI results and a clear, replicable pattern among the minority of carriers actually moving the needle”. Read: Aviva claims industry first with new AI underwriting tool for CI cover Read: Novee AI secures £1.6m in funding to enhance commercial and specialty underwriting Explore more artificial intelligence related stories here, or discover other news stories here Those carriers that had moved the needle, it suggested, did not chase increasingly sophisticated technology, but instead had meaningful differences in their approach to leadership, workflows and business outcomes, deploying their solutions end-to-end rather than at fixed points in existing processes. Speaking on the findings, Artem Gonchakov, chief executive at Simplifai, said: “Insurance doesn’t have an AI problem, it has a strategy execution problem. Technology works. The business model doesn’t.” He graduated in 2017 from the University of Manchester with a degree in Geology. He spent the first part of his career working in consulting and tech, spending time at Citibank as a data analyst, before working as an analytics engineer with clients in the retail, technology, manufacturing and financial services sectors.View full Profile No comments yet
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