Artificial intelligence adoption is becoming widespread across the insurance industry, but differences in governance, data readiness, implementation maturity and risk controls could determine which insurers convert AI investment into sustainable business value, according to a new S&P Global Ratings survey covering 121 insurance-sector entities globally. The survey finds that AI is increasingly being used for customer experience, underwriting, risk management and claims processing, with operational benefits becoming visible earlier than direct financial gains.
The survey indicates that insurers are moving from isolated AI experiments towards more formal strategic integration. While S&P says AI has not yet materially affected profitability or credit quality, insurers surveyed expect 6%–7% efficiency gains and 4%–5% revenue improvements by 2028. The share expecting AI-related cost savings of more than 3% is projected to rise from 16% in 2025 to 80% by 2028. Insurers are also expected to more than double the proportion of their budgets allocated to AI over the next three years, focusing on workflow automation, workforce productivity, customer solutions and risk management.
For insurers, the findings underline that AI deployment alone may not create competitive advantage. Reliable data, strong governance, effective risk controls and disciplined implementation will increasingly determine whether AI delivers measurable business benefits without increasing operational, regulatory and reputational exposure. S&P analyst Andreas Lindberg noted that evidence of profitability gains remains inconclusive, although insurers expect successful scaling to accelerate cost savings by the end of 2028.
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