Inflation Continues to Lead Insurers’ Concerns

For the third consecutive year, inflation ranks as the top concern among global insurance executives, with AI rapidly rising in importance as the industry adapts to new technologies.

The latest Global Priorities Survey by the International Insurance Society reveals that inflation remains the top concern for insurance executives globally for the third year in a row, with 69% listing it as a top-three economic priority. Despite cooling predictions from Goldman Sachs, the impact of inflation on replacement costs continues to affect insurers, who have been adjusting rates to compensate.

In addition to inflation, AI has become a significant focus, with 55% of executives now prioritizing it as a top-three technology, up from 29% last year. This shift underscores the potential of AI to enhance operational efficiency across various processes, from underwriting to customer service. However, more than a third of executives admit their companies are unprepared for the rapid advancement of AI, citing challenges such as slow adaptation and the need for extensive reskilling.