Two decades of digitisation failed to cut insurance costs; AI could change that: McKinsey
Devdiscourse reports on a McKinsey finding that two decades of digitisation largely left insurers' cost bases intact, but AI - applied to underwriting, claims and servicing - could materially compress expense ratios. For executives this means prioritising data operations, model g
Full Article
Devdiscourse reports on a McKinsey finding that two decades of digitisation largely left insurers' cost bases intact, but AI - applied to underwriting, claims and servicing - could materially compress expense ratios. For executives this means prioritising data operations, model governance and talent; expect margin recovery, accelerated M&A, and competitive divergence between AI-capable incumbents and laggards, with regulatory and ethical oversight rising.
--- **Source:** [Devdiscourse](https://www.devdiscourse.com/article/business/3986199-two-decades-of-digitisation-failed-to-cut-insurance-costs-ai-could-change-that-mckinsey) *Original reporting by Devdiscourse. The Universal Outlook editorial analysis provides independent context and business intelligence.*
Editorial Analysis
Devdiscourse reports on a McKinsey finding that two decades of digitisation largely left insurers' cost bases intact, but AI - applied to underwriting, claims and servicing - could materially compress expense ratios. For executives this means prioritising data operations, model governance and talent; expect margin recovery, accelerated M&A, and competitive divergence between AI-capable incumbents and laggards, with regulatory and ethical oversight rising.
Source Attribution
Reporting and source material from Devdiscourse. This article provides The Universal Outlook's independent editorial analysis.
