Insurance companies risk missing $160b without AI scale

Those who successfully deploy AI invest about 30% more in AI capabilities than peers.

Insurance companies investing heavily in artificial intelligence (AI) initiatives have achieved up to a 20% increase in total shareholder return compared to competitors, according to a report by Boston Consulting Group (BCG).

The report emphasises that whilst 85% of insurers have initiated AI projects, only 10% have fully scaled AI across their operations. 

Companies that move beyond isolated pilot programs to implement AI at scale see improvements in underwriting accuracy, fraud detection, and customer engagement.

BCG estimates that AI-driven underwriting alone could add $160b in value to the global insurance industry by 2030. 

However, realising these gains requires a clear AI strategy linked to core business goals, disciplined execution, and strong talent development in data and analytics.

The study also highlights that insurers successfully deploying AI invest about 30% more in AI capabilities than their peers, often allocating budgets between $50m and $100m annually.