The role of AI and digital technologies in the insurance sector: a Generali Group perspective

The advancements in Artificial Intelligence technology have helped in a process of transformation across different sectors, allowing companies to adopt and explore advanced strategies. In this context, the insurance industry has increasingly recognized the capacity of AI to improve, among others: operational efficiency, customer service, and profitability. Indeed different studies and researches have highlighted innovative applications of AI in this sector; for example the automation of claims processes in order to reduce human error or sophisticated systems of fraud detection able to recognize suspicious behaviors. Despite the recognized potential that AI has to revolutionize this world, there is still a marked discrepancy between the aspirations of the companies and the reality in. the implementation process. This trade off highlights the multifaceted challenges associated with AI integration, which has been often proved to be significantly more difficult than what was expected. Organizations often confront barriers, such as insufficient data management practices, resistance to technological change, and the need of trained and upskilled people who can deploy these technologies effectively. To gain more insights on these challenges a mixed methodology will be used. This process includes observations conducted during an internship of six months within Generali Group, combined with corporate documents and interviews. The findings from this research also have the objective to demonstrate how AI, when used and implemented correctly, is a critical asset for an insurance company. Indeed, advanced technologies have the potential and are recognized to be a significant competitive advantage contributing to improve efficiency and fasten business operations. As said, the focal case study of this work is Generali Group, but different insurance companies were analyzed. Overall, the companies’ commitment to leveraging data and AI captures a clear trend within the sector, while at the same time underscoring the challenges that organizations must deal with to grasp the advantages these technologies are enabling.