The insurance industry is focusing on artificial intelligence and climate change as primary concerns for 2024, according to the latest findings from the International Insurance Society (IIS) Global Priorities Survey. The survey sought to identify the most pressing issues in the industry and collect valuable data to shape decisions for future stakeholders, revealing a significant shift in the priorities of insurance leaders worldwide.
The Rise of AI in Technology and Innovation
For the first time, AI has become the leading concern within the Technology and Innovation category, with over half of the respondents emphasizing its importance. The industry’s slow pace in adapting to swift technological changes and the urgent need for reskilling an aging workforce are key factors driving this focus. Insurance executives have voiced their worries about their companies’ readiness to handle the rapid evolution of AI technologies. One executive highlighted that despite advancements such as machine learning, the industry remains sluggish in internal technological adaptation.
Climate Change as a Persistent Environmental Concern
Climate change has been a recurring dominant issue in the Social and Environmental category for the past four years, and 60% of executives have made it a priority for 2024. The insurance industry faces significant challenges as natural disasters become more frequent and severe, making future losses harder to predict and more costly. These environmental shifts pose risks of destabilization not just for insurers, but also for governments and consumers. Despite the urgency, a considerable number of respondents admitted that their companies are not yet adequately prepared to address climate change effectively in the coming year.
Economic Concerns: Inflation Over Recession
Inflation remains the most commonly selected priority within the Economic category for the third consecutive year, indicating continued worry among insurance leaders. However, concerns about a potential recession have notably decreased compared to their peak in 2022. This shift suggests that while inflation remains a critical issue, the industry feels somewhat relieved about the immediate threat of an economic downturn.
Growth Opportunities in 2024
The insurance industry is increasingly prioritizing artificial intelligence and climate change as major areas of concern for 2024, according to the latest Global Priorities Survey conducted by the International Insurance Society (IIS). This annual survey aims to pinpoint the most pressing issues within the industry and gather crucial data to inform decision-making processes among future stakeholders. The findings from this year indicate a noteworthy shift in the focus of insurance leaders around the globe. Artificial intelligence is being recognized for its potential to revolutionize risk assessment, claims processing, and customer service, offering unprecedented efficiency and accuracy. Simultaneously, climate change is no longer viewed as a distant threat but rather as an immediate challenge with far-reaching implications for underwriting, risk management, and the overall stability of the insurance market. The data collected will serve as a vital resource for crafting strategies that address these evolving challenges and opportunities, ensuring that the industry remains resilient and adaptive in an ever-changing landscape.
