Insurance CEOs See Generative AI as a Job Creator, Not a Job Killer, According to KPMG New Survey

A new KPMG survey reveals that insurance sector CEOs unanimously believe that generative AI will increase the demand for jobs rather than lead to job cuts. According to the KPMG 2024 Insurance CEO Outlook, not a single CEO in the global insurance industry expects generative AI to result in more job losses than job creation.

The survey, which gathered insights from insurance CEOs around the world, shows that leaders in this sector are more inclined than any other group of CEOs to view generative AI as a top investment priority. The primary applications of generative AI in the insurance industry are expected to be in data analysis and combating cybercrime and fraud.

A significant 81% of insurance CEOs ranked generative AI as a key investment focus for their companies. Despite AI’s potential to disrupt industries across the board, few sectors rely as heavily on data as insurance does, positioning AI mastery as a crucial differentiator for insurance brands. Historically, the insurance industry has lagged in productivity growth, but generative AI holds the potential to transform that narrative.

The survey also found that nearly 73% of insurance CEOs are optimistic about their company’s growth prospects, and 93% expect to expand their workforce over the next three years. This confidence persists despite geopolitical risks, economic uncertainty, and the challenges of digital transformation.

Other key findings from the KPMG insurance CEO survey include a strong focus on accelerating digital transformation, meeting environmental, social, and governance (ESG) goals, and boosting productivity. ESG remains a priority for many insurance firms, with 63% of CEOs expressing confidence in meeting net-zero targets by 2030.

However, cybersecurity remains a concern for the industry. Only 54% of insurance CEOs feel well-prepared for a cyberattack, down from 66% last year. Additionally, just 43% believe their cyber strategy can keep pace with rapid advancements in AI technology.

Huw Evans, head of insurance at KPMG UK, noted that insurance CEOs are optimistic about growing their businesses over the next three years, both in terms of revenue and workforce size. He emphasized that more than 90% of insurance CEOs expect their workforce to expand as they leverage generative AI to improve data analytics and combat financial crime rather than eliminate jobs.

Frank Pfaffenzeller, head of global insurance at KPMG International, added that insurance CEOs are focused on advancing their digital transformation efforts while delivering on ESG commitments and enhancing productivity. To achieve these goals, they recognize the importance of recruiting new talent and adopting innovative technologies like generative AI. He noted that companies that move swiftly toward a sustainable and digitally advanced future could gain a competitive edge in the market.

The global insurance industry is projected to be valued at around US$6-7 trillion in 2024, with expectations for steady growth. According to the Allianz Global Insurance Report, the worldwide insurance market is forecasted to expand at an annual rate of 5.5% over the next decade, potentially reaching nearly US$10 trillion by 2028.

The KPMG 2024 Insurance CEO Outlook reflects the views of 120 insurance CEOs, including leaders from major markets such as the US, China, Australia, France, and Germany.

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