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S&P Global Ratings flags AI governance as key for insurers
A survey of 121 rated re/insurance entities predicts AI could deliver 6% to 7% efficiency gains and 4% to 5% revenue improvements by 2028, with cost savings above 3% expected to jump from 16% in 2025 to 80% by 2028.
Insurers are moving from isolated AI experiments to more formal integration, but S&P Global Ratings says governance maturity, not adoption speed, will increasingly determine who captures results, according to the insurer survey cited by Insurance Business. S&P Global Ratings said its survey covered 121 rated re/insurance entities worldwide, representing about 38% of the sector assets it rates.
S&P Global Ratings found AI use is expanding across customer experience, underwriting and risk management, and claims processing, with operational benefits showing up earlier than financial gains. Insurers surveyed expect 6% to 7% efficiency gains and 4% to 5% revenue improvements from AI by 2028, while the share expecting AI-related cost savings above 3% is projected to rise from 16% in 2025 to 80% by 2028.
The ratings firm also reported insurers plan to more than double the share of technology budgets allocated to AI over the next three years. That spending is expected to focus on workflow automation, workforce productivity, customer solutions, and risk management, with governance infrastructure described as already widespread.