AI is the top investment area for 3 out of 4 insurance CEOs

Date:
Wed, 03 Jun 2026 15:20:00 +0000

Description:
The insurance sector seems highly prepared to invest in AI, with more seeing it as an opportunity than a threat.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter 73% of insurance CEOs see AI as a major investment priority Business leaders have "made significant progress in understanding AI" Productivity is still a major attraction, but compliance and security can be concerns New KPMG data has revealed that nearly three-quarters (73%) of insurance CEOs now see AI as their top investment priority, with the technology increasingly used across underwriting, claims, onboarding and customer service.

This comes as 92% of financial services companies, per the report, have generated profits from using AI. However, while many are keen to invest in artificial intelligence, only around one in three (32%) have actually seen returns of any meaningful measure. Latest Videos From Watch full video here: Insurance and finance companies are keen to invest in AI Despite a slow
start, they remain hopeful, with two-thirds (67%) expecting AI-derived
returns in the next one to three years, up from 21% when the same question
was asked two years ago. The same number of leaders also plan to allocate 10-20% of their budgets towards AI.

KPMG described AI as a strategic priority for most insurers, noting that boards and C-1 leaders have "made significant progress in understanding AI" and are now seeing it as a strategic business topic instead of just another
IT tool. You may like CEOs could be at risk if they mess up AI deployment New KPMG report claims firms are "racing" to deploy AI New study claims firms are ready to spend big on AI, but are afraid to take the first step

However, as with any tech adoption, slow adopters risk being left behind. 'Emerging' insurance companies with limited AI proof-of-concepts are said to have other investment priorities instead, which include building a solid AI foundation.

"As AI moves from experimentation to enterprise capability, organizations
that build a foundation that is scalable with quality data are best
positioned to realize sustained value," Tech, Data and AI Lead for Insurance Riccardo Altenburg noted. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features
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Still, the outlook is positive with AI generally seen more as an opportunity than a risk. Productivity and efficiency gains are still high on the list, as well as improved quality and data analysis.

On the flip side, compliance and security risks are holding many back, and a growing number of companies are now worried about becoming dependent on Big Tech. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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