Global standards body Acord has said only 25% of major insurers have truly digitised their value chain and that 10% are still not appreciably leveraging digital technologies within their existing business process. It found that more than half were still exploring how digitisation could be best used within their operations.

Bill Pieroni, CEO of Acord, said: “The reality of AI and its impact on the industry are widely recognised, and implementation is well underway. We have seen the performance gap between digital competitors vs laggards steadily grow year after year – AI leverage is further accelerating that differentiation. A clear strategy and resource allocation around AI, as well as a full spectrum of digital capabilities, is necessary for any insurer to remain competitive in coming years.”

Acord said could reduce expenses for P&C insurers by almost 15% in its ‘Insurance Digital Maturity Study’.