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Insurers lag AI redesign despite high confidence in transformation
KPMG found 77% of insurers fear losing competitiveness in five years without an AI enterprise architecture redesign, even though only 29% run end-to-end processes via AI agents.
A KPMG survey found nearly half of insurance executives, 44%, believe their organizations are in the top quartile for AI transformation, but that confidence is not matched by functional redesign, particularly in core workflows like underwriting and claims. The report said functional redesign remains rare, with none of the surveyed firms fully redesigning sales and distribution or underwriting models around AI.
According to the findings, only 3% of surveyed insurers have achieved full redesign in claims management and policy servicing. The survey also points to a disconnect between urgency and readiness, noting that while no respondent sees themselves significantly behind, end-to-end adoption via AI agents remains limited.
KPMG reported that 77% of insurers fear losing competitiveness within five years without an AI enterprise architecture redesign, even though 71% use AI for content generation and routine automation. The report also said 68% view slow AI adoption as a greater risk, reflecting ongoing concerns inside the sector as adoption outpaces measurable operational change.