Core Insights - The insurance industry has seen significant AI adoption, with 69% of companies deploying AI, yet only 36% of US customers report improved digital experiences, indicating a gap between internal efforts and customer outcomes [1][3] - The report emphasizes the need for insurers to align AI strategies with customer expectations and operational goals to drive innovation and build trust [2][7] Adoption and Impact - While 69% of insurance companies are using AI, only 36% of US consumers feel their digital experiences have improved in the last two years, highlighting an opportunity for better alignment [3] - Trust in AI-driven insurance quotes is low, with 59% of consumers preferring live agents, especially during crises [3] Potential and Challenges - 62% of respondents believe competitive advantage will stem from efficiency in high-volume tasks, while only 30% expect it from high-complexity tasks, and just 8% from growth or monetization, indicating underutilization of AI capabilities [4] - Governance and oversight are significant challenges for scaling AI, with 49% of respondents identifying these as hurdles, alongside data privacy concerns at 62% and regulatory differences at 42% [5] Workforce and Skills - Despite investments in training, only 2% of insurance executives report that nearly all team members are AI fluent, with 69% indicating that very few or some team members possess AI fluency, limiting the industry's ability to scale AI effectively [6] Strategic Recommendations - The report proposes a six-point strategic blueprint for insurers to scale AI: strengthening data foundations, building partnerships, empowering people, designing for scale, balancing governance and risk, and prioritizing business outcomes [8] Methodology - The study surveyed 200 senior insurance executives globally and 1,000 US insurance customers, providing insights into AI's impact, challenges, and opportunities in the insurance sector [11]