As one example where a return on investment is expected in the insurance sector, Juniper Research reports that auto, property, life, and health insurers will increase their annual savings by around four times more in 2023 compared to 2019, simply by investing in artificial intelligence (AI). (1) 

One doesn’t have to look far to understand why AI and these other technologies are being used to uncover and address the inefficiencies and waste. Take a moment to consider the difficult times of the last few years where many organizations large and small around the globe were looking to survive. Some, however, leaned in on innovation to not just survive but to thrive.

Both surviving and thriving bring exposure and risk, especially during the pandemic. According to an Allianz survey, below the top-ranked risks organizations were (and still are) dealing with – many of which can be mitigated with technology: (2)

  1. Cyber incidents
  2. Business interruption
  3. Natural catastrophes
  4. Pandemic outbreak
  5. Changes in legislation and regulation
  6. Climate change
  7. Fire, explosion
  8. Market developments
  9. Shortage of skilled workforce
  10. Macroeconomic developments

With cyber incidents topping the list at 44% (up from the previous year), (3) ransomware attacks end up being one of the most concerning cyber exposures for companies to deal with as they tick the cyber box and cause fear for a wide-scale business interruption. This risk ranked second to cyber incidents. This aligns well with a separate view of the market, noting that digital transformation leaders see improved security as their principal benefit (87%) coming from their investments in digital transformation. (4)

Yet another view from a different angle also points to this same sentiment: “The push for digitalisation is best complemented by investment in skills and cyber security.” (5)

With complex environments being created up and down the insurance supply chain, the exposure becomes widespread throughout the insurance sector and these risks find their way into each organization to manage. Leading innovations with resiliency in mind right from the definition and design phases will help to ensure these risks are clearly identified and mitigated where they will impact the business most.


1 – “AI Insurance trends to witness in 2021 and beyond,” Serkan Yildiz, February 2021

2, 3 – “Allianz Risk Barometer 2022,” Allianz Global Corporate & Specialty, January 2022

4  – “2021/2022 Digital Transformation & Cloud Survey: A Wave of Change,” Baker McKenzie, December 2021

5 – “Turbulence after lift-off: global economic and insurance market outlook 2022/23,” Swiss Re Institute, October 2021