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- GenAI in Insurance: Key Applications, Spending, and Transformative Use Cases
GenAI in Insurance: Key Applications, Spending, and Transformative Use Cases
Generative AI in Insurance: How GenAI impacts customers interaction with claims and decision-making
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Generative AI in Insurance Market Size
The global GenAI market in insurance is projected to grow at a remarkable CAGR of 33.11% from 2023 to 2034, according to Precedence. Market size is expected to expand from $0.62 billion in 2023 to a staggering $14.3 billion by 2034. The U.S. market alone is expected to see significant growth, increasing from $0.19 billion in 2023 to $4.51 billion by 2034.
The rapid expansion of the GenAI market in insurance is fueled by the increasing adoption of AI-driven solutions across multiple key functions, including underwriting, claims management, risk assessment, and customer engagement. As insurers recognize the potential of AI to streamline complex processes, they are making significant investments in GenAI technologies that enable more accurate risk modeling, personalized customer interactions, and faster claims resolution. For example, AI-powered underwriting tools can analyze vast datasets in real-time, improving decision-making while reducing operational costs. In claims management, GenAI enhances fraud detection and automates routine tasks, allowing insurers to process claims more efficiently and with greater accuracy. On the customer engagement front, AI-driven chatbots and virtual assistants provide personalized, 24/7 support, improving customer satisfaction and loyalty. As insurers continue to integrate these innovations, GenAI is not only set to enhance operational efficiency but also to fundamentally reshape how insurance services are delivered, driving more personalized, data-driven, and proactive customer experiences. This technological shift positions GenAI as a cornerstone in the evolution of the insurance industry, ensuring that companies remain competitive in an increasingly digital and customer-centric market.
