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By 2030 , AI is expected to contribute $ 1.5 trillion to the global economy , potentially driving significant growth and innovation in the financial sector .
AI could have a significant impact on corporate banking within the next decade , replacing traditional roles with autonomous agents capable of managing transactions , providing real-time financial advice , and enhancing customer experiences .
The level of global cooperation and the pace of technological change will help determine how effectively and equitably the insurance sector , governments and societies at large address policy challenges like the climate crisis . Content strategy in healthcare is shifting to reflect a more sophisticated patient audience . Practices are leveraging AI to assist in generating in-depth articles , condition-specific educational resources , and visually engaging content .
Insurance industry on alarming trajectory , can AI help ?
By 2040 , technological innovation driven by customer centricity could pave the way to greater climate resilience and more personalised offerings by the insurance industry . Alternatively , insurance could become a luxury afforded only to the wealthiest few . These are potential paths for the insurance industry , according to a new future of insurance study by Economist Impact and data and AI leader SAS .
Even the boldest actuaries , in their most ambitious risk models , could hardly have imagined the skyrocketing frequency and severity of loss events we have experienced in recent years . The industry is on an alarming trajectory .
Insurers are facing increasingly complex unknowns much faster than they have ever had to in the past , and it is pushing their actuarial limits . AI will become an indispensable tool in helping insurers survive and thrive on the path to 2040 . AI guided by human intelligence that knows how to use its capabilities optimally and responsibly for the benefit of the company and the protection of its customers .
The scenarios described are not intended to predict the future . Instead , they explore possible futures for the insurance industry , helping insurers better position themselves to respond effectively to emerging challenges and seize new opportunities .
The level of global cooperation and the pace of technological change will help determine how effectively and equitably the insurance sector , governments and societies at large address policy challenges like the climate crisis . Each path forward includes expert recommendations for industry leaders to build resilience and foster agility .
There is a non-zero chance the insurance industry will collapse by 2040 – and that should prompt all insurers to take stock of growing risks and their overall resilience . Insurers cannot price customers out of coverage in flood zones to remain profitable in the climate crisis , certainly not in perpetuity , and perhaps not for much longer .
As the digital revolution plays out in parallel , insurers can and should invest in responsible innovation for a more climate-resilient and prosperous future – or they risk failing the fundamental value proposition of insurance , which is to protect people .
# 1 Isolationism and unregulated technological growth leads to missed climate targets .
Isolationist global politics leads to accelerating technological evolution , unrestrained by regulatory guardrails or broader global coordination . The international community falls short of climate targets due to poor global cooperation .
Only countries with the most developed economies can invest in and deploy green technologies , renewable energy , electric vehicles , while developing economies and regions suffer .
Private , hyper-regionalised insurance creates large disparities in product offerings and pricing , and the vast insurance protection gap widens as insurers withdraw from high-risk markets .
# 2 Customer centricity drives prevention-focused approaches and climate transformation .
If regulatory efforts and global cooperation succeed in protecting digital identities and data privacy , new open
Franklin Manchester , Principal Global Insurance Advisor at SAS
Thorsten Hein , Insurance Lead in Risk , Fraud and Compliance Solutions at SAS
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