By Ralitsa Nenkova, Global Insurance Leader, Consult Partner and Vice President at Kyndryl
The insurance game has always been about risk. But today’s insurers face unprecedented pressures from all sides, including the most frequent and severe natural catastrophes in recent memory, ever-tightening domestic and global regulations and persistent and increasingly sophisticated fraud threats. All of this is happening just as many in the industry work to modernize their legacy IT systems to stay ahead of the pack.
Industry pressures continue to force change as they reshape resiliency requirements and underscore the need for innovation driven by AI. Today’s insurance industry ambition is to transform operational fundamentals rather than pursue incremental improvements to traditional ways of doing business.
The insurance industry is no stranger to innovation. Many insurers have already incorporated sophisticated AI models into their pricing strategies and use telematics to personalize auto insurance premiums. Meanwhile, new products emerging to manage climate-driven volatility. The current scale of change demands greater agility, efficiency and resilience that agentic AI at scale can help deliver.