The 10th ITC conference centered heavily on the shift from AI hype to practical, scalable implementation across the insurance value chain. Here are five key takeaways from the conference:

  1. The industry is investing in operationalizing AI at scale. The conversations shifted from prototypes, POCs, and how much AI will matter in insurance to where AI is working and how it can scale. Use cases in claims and underwriting were on display in the expo hall. Technology vendors and service providers are emphasizing the need for a connective layer that orchestrates AI capabilities, data sources, and business functions. The industry is coming to terms with the need for a cohesive strategy for meaningful and transformative enterprisewide AI implementation. This includes data strategy. While use cases for AI in insurance are certainly getting more complex and cross-functional, the fastest AI wins are those that support internal operations and drive operational efficiency. A clear articulation of where and how AI is accretive, particularly from the vendor community, will temper some of the AI hype.
  2. Data transformation and core system flexibility are vital for success. It’s clear that the ability to use AI at scale is highly dependent on data, and many carriers have significant data transformation initiatives underway. The industry is moving from periodically updated data toward data collected in real time (e.g., weather and behavioral data) facilitated by sensors and telematics for continuous and more accurate risk assessment. Executives at carriers recognize that they will need high-quality data as they integrate AI solutions within their enterprise to remain competitive and differentiate. Carriers will also need flexible core systems that can quickly bring new products to market. Demand for phased modernization strategies is challenging the status quo of large transformation projects. Data and service providers were in full force at ITC to satisfy this demand.
  3. The role of the human in insurance is at the precipice of being redefined by AI. Several mainstage and breakout sessions suggested that while humans remain necessary in the relationship-driven insurance industry, there will be a significant change in their roles. Some even suggested that AI will replace humans. There was enough evidence at ITC that AI will replace repetitive tasks, freeing human agents, underwriting assistants, and adjusters to focus on higher-value activities such as strategy and providing empathetic, personalized service. AI capabilities will increase efficiency and provide analytics and insights, facilitating a shift of people from manual data-entry roles to more complex positions. Those who use AI to bolster their skills will come out as winners.
  4. Respect real-world enterprise IT. While there was plenty of inspirational talk about the future at the conference, we also got a humbling view of the present. Mainstage conversations highlighted the realities of enterprise IT within the four walls of carriers. Implementing new technology is challenging, particularly in an environment that is running multiple core systems, some on legacy technology. Modernizing these stacks while keeping the lights on is not trivial. Newer roles of chief data officer and chief AI officer are gaining popularity in insurance, but the most successful ones are those who work well with existing IT teams. Enterprise IT is the gateway to implementing and realizing value from newer tech, particularly AI.
  5. Innovation in insurance is essential. A keynote from Liberty Mutual CEO Tim Sweeney highlighted the insurance industry’s dependence on innovation and that innovation in insurance must come from inside and outside insurance organizations. He emphasized the value of creating a culture of innovation and shared a simple framework of three E’s: expose, educate, and empower teams to innovate. Similar sentiments were shared throughout the three days of ITC. It is encouraging to see innovation — especially in insurtech — evolve from something incumbents once viewed with skepticism to something they now actively embrace. Continuous enterprisewide innovation will keep this vital industry relevant.

Clients interested in discussing these and other themes can chat with me via an inquiry or guidance session.