Eighty-one per cent of insurance CEOs consider Gen AI as a top investment priority for their organisation.

Although AI stands to disrupt every business sector on a fundamental level, few industries rely on AI’s foundation – data – as profoundly as the insurance industry. For CEOs, mastering AI will be a key differentiator between one insurance brand and another. In the past, the insurance industry has not exactly been at the forefront of productivity growth. Gen AI has the potential to upend that. 

Nearly three-quarters of insurance CEOs (73%) are confident about their company’s growth prospects and 93% expect to increase the size of their workforce over the next three years.

Insurance CEOs are clearly confident about their firms’ growth prospects despite heightened geopolitical risk, ongoing economic uncertainty and digital transformation challenges.

Other findings of this year’s KPMG insurance CEO survey include CEOs staying highly focused on accelerating their digital transformation, delivering on their ESG agenda and enhancing productivity.

ESG in particular continues to be a key focus for many insurance organisations, with 63% of insurance CEOs confident that they will meet net zero goals by 2030.

Market advantage

However, only 54% of insurance CEOs say they are “well prepared” for a cyber attack (down from 66% last year), with just 43% thinking their cyber strategy can keep up with the rapid advancements enabled by AI.

Huw Evans, head of insurance at KPMG UK, says: “Insurance CEOs are confident that they will be able to grow their business over the next three years — both in terms of earnings and headcount.

“Over 90% of insurance CEOs expect to see their workforce expand over the next three years as they look to Gen AI to improve data analytics and fight financial crime rather than eliminate jobs.”

Frank Pfaffenzeller, head of global insurance, KPMG International, adds: “Insurance CEOs are highly focused on accelerating their digital transformation while delivering on their ESG agenda and enhancing productivity. To drive each of these forward, they recognize the need to infuse the organisation with new talent and to embrace new technologies — Gen AI in particular — if they hope to achieve their growth objectives.

“Those organisations that move further and faster toward a sustainable and digitally enabled future could gain a significant market advantage.”

The global insurance sector is estimated to be worth between US$6-7 trillion in 2024 and, according to this year’s Allianz Global Insurance Report, the worldwide insurance market is expected to grow at an annual rate of 5.5% over the next decade, potentially reaching close to US$10 trillion by 2028.

The KPMG 2024 Insurance CEO Outlook was compiled from the views of 120 insurance chief executive officers, including CEOs from 11 key markets including the US, China, Australia, France and Germany.

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