How do you perceive the impact of Artificial Intelligence (AI) and automation on the insurance industry? How are insurers responding to these developments, and what innovative AI solutions are they using?
Artificial Intelligence is fundamentally transforming the insurance industry – from automated claims processing and fraud detection to personalized customer communication. “From play to purpose”: At msg, we stand for the professional, targeted, and strategic use of AI for our clients, helping to increase value creation and ensure competitiveness. I am convinced that AI can take the insurance industry to a new level by enabling insurers to act more efficiently, precisely, and with a customer-centric focus. With the use of AI, individual premiums can be calculated, claims processed more swiftly, and preventive measures implemented. This leads to better service quality and cost efficiency, which in turn can become a significant growth driver.
Today, our insurance clients use AI solutions across a wide range of areas and to varying extents: they leverage specialized language models for customer communication, employ AI tools for fraud detection and claims processing, utilize AI-optimized risk analysis and assessment, and improve customer interactions through chatbots and virtual assistants.
I would like to highlight our AI solution msg.process:it as a specific use case. This is an AI-based agent for the insurance industry that automates and orchestrates business processes end-to-end – from analysis to customer communication. The solution independently identifies required actions, reconciles information with system requirements, retrieves missing data from both structured and unstructured sources, and executes processes efficiently. In doing so, it addresses key challenges such as rising costs, skilled labor shortages, and the loss of expertise due to retirements. At the same time, it meets increasing customer expectations for fast and simple services. Through semantically driven process automation and targeted relief across all skill levels, msg.process:it optimizes operational setup, increases efficiency, and improves the user experience – all while being securely and compliantly available as a cloud service.
How do you assess the ethical and legal implications of using AI at msg? How can it be ensured that this technology is handled responsibly and ethically in business? Where do you see the fundamental limits of AI in the insurance industry?
The responsible use of AI requires clear ethical guidelines, a legal framework, and technical transparency. At msg, AI is used transparently, meaning its usage is disclosed internally and to our clients. In particular, the use and publication of AI-generated content is clearly identified as such. However, AI can, of course, also make mistakes. The output of a language model is based on probabilities and chances. The accuracy and quality of the output must always be verified, because human capabilities—such as emotional intelligence, empathetic responses, the ability to improvise and use intuition, and moral responsibility – cannot yet be fully replicated by AI. Furthermore, our msg colleagues are instructed not to enter any personal data or sensitive, non-public business information into external AI tools. The limits of AI in the insurance industry can arise in areas such as ethics and cybersecurity (ensuring non-discriminatory AI and protection against cyberattacks), data quality (integration with existing systems), regulation (complex EU requirements such as the AI Act and DORA), and skills shortages (sometimes limited capacity for AI projects).
What will insurance customers of tomorrow look like? What are their needs? Which technologies will influence the insurance industry in the future?
Insurance customers are becoming increasingly price-sensitive due to inflation and expect simple, digital, and transparent offers in real-time. They anticipate digital self-services, personalized rates, and immediate responses from insurers, especially in the event of a claim. Requests need to be fulfilled smoothly and quickly to ensure a positive customer experience, particularly when the customer is in distress and relying on their insurance. IT systems will need to be even better aligned with these demands in the future. I am convinced that customer expectations and the way these expectations are met—in product range, advice, service, and especially in the moment of truth—determine the success of an insurer. Personally, I consider individual product features less important than excellent service and trust. The human element is still crucial, but also the best possible support through technology—and AI. For our insurance customers, the question is not: Will AI be used? They assume it will. The question is: How and where will AI be applied?
Technologies such as computer vision, for fully automated risk assessment, claims processing, and fraud detection; deep learning, for specific action recommendations; the Internet of Things (IoT), for autonomous prevention, repair, and replacement; and quantum computing, for real-time monitoring and simulations, will all influence the insurance industry in the future.
Why is msg the right partner for insurers to support their growth strategy?
msg is a global market leader in reinsurance systems and Europe's largest independent IT service provider, with more than 5,000 insurance experts worldwide and over 300 actuaries in the D/A/CH region, managing projects in 34 countries. Over 50% of all life insurance policies in the D/A/CH region are managed by msg solutions. With our decades of industry expertise, we offer flexible and scalable solutions tailored to the unique needs of our clients. For example, the SaaS-based msg.Insurance Suite supports our clients in managing their insurance portfolios. Our focus is on transparency, traceability, and data protection to build and sustain the trust of our customers.
What makes inscom so relevant from your perspective?
From my point of view, the two-day event offers an excellent platform to bring the right people together. I’m really looking forward to the participants of inscom 2025, especially our high-caliber speakers and recognized industry experts, as well as many familiar faces – perhaps even a few new ones. Everyone will be in Munich again in September to exchange ideas on current trends, challenges, and new products in the insurance industry, build new connections, and share best practices. The combination of in-person events and digital elements also allows participants to gain a broad perspective and tailor their event experience flexibly. I’m already looking forward to the exchange in September!