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Oxbow Partners urges re/insurance CEOs to operationalize AI
The firm says many insurers are investing in AI, but most have not yet set out how it will create durable competitive advantage beyond efficiency gains and pilots.
A new Oxbow Partners CEO Agenda report urges leaders in commercial and specialty re/insurance to move beyond AI experimentation and build the operating models, governance structures, and decision-making capabilities needed to turn AI spending into a lasting competitive advantage.
Oxbow Partners said insurers have been investing significantly in AI, but many still lack a clear path to delivering a durable advantage beyond efficiency improvements, pilot programs, or isolated use cases. The report argues that AI represented a step-change in capability since 2023.
Unlike earlier transformation efforts centered on standardizing high-volume processes through automation and outsourcing, Oxbow said AI can reduce the need for scale and standardization as prerequisites for value, provided firms have the right information infrastructure.
The firm added that the competitive edge comes from enhancing judgment in complex risks and portfolios, not just automating tasks, and it warned that AI is not a silver bullet, saying poorly applied AI can increase cost rather than create value.
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