The insurance industry is under pressure to transform. This shift is global, and is about improving customer experience and ensuring efficiency, cost-effectiveness, and sustainability in a highly competitive environment.
One of the most significant drivers of this transformation is incorporating artificial intelligence (AI) and generative AI (gen AI) into business operations.
Deloitte’s 2025 Global Insurance Outlook says the insurance ecosystem is experiencing its “iPhone moment”, a tipping point where the capabilities of AI are not only understood but seen as essential to the industry’s future.
A recent Deloitte survey found that 76% of US insurance executives have already implemented gen AI capabilities across one or more business functions.
But the Asia Pacific region is leading the charge. Factors like the availability of technical talent and a culture that’s more in tune with technology are driving this trend.
Similarly, customer service is experiencing significant change, with insurers using chatbots and other AI-powered tools to answer customer questions.
However, these improvements need a solid foundation of efficient end-to-end processes. Deloitte advises that insurers must build a scalable, automated operating model before expanding their AI efforts. Without this foundation, insurers could face problems dealing with future market changes and challenges.
Deloitte’s research shows that more people feel using AI tools at work could make employers seem less empathetic or human. To avoid this, insurers must create a culture of human sustainability — focusing on employee well-being and ensuring AI tools support, rather than replace, human roles.
When employees see AI as an asset rather than a threat, they’re more likely to accept it and work together to reach the company’s goals.
The talent needed to build and manage AI systems is in high demand, so insurers must invest in technology and workforce development.
Sandee Suhrada, a principal at Deloitte Consulting LLP, points out how tech and talent go hand in hand: “In the AI space, technology and talent are two sides of the same coin.”
Insurers must create an ecosystem where AI and talent work seamlessly to drive transformation.
