Key views of percentage of budget spent on AI in insurance companies:
- KPMG’s Insurance CEO Outlook surveyed 110 insurance CEOs across 11 markets, all leading organisations with revenues above $500m
- Two-thirds of insurance CEOs plan to allocate between 10% and 20% of their budget to AI investment
- The data signals a sector moving beyond exploration, with most CEOs backing AI with meaningful budget and expecting returns within three years
KPMG’s Insurance CEO Outlook surveyed 110 insurance CEOs across 11 markets, all leading organisations with revenues above $500m
KPMG’s Insurance CEO Outlook draws on responses from 110 insurance CEOs surveyed as part of KPMG’s broader annual CEO Outlook study.
All respondents lead organisations with annual revenues exceeding $500m, with a third overseeing companies generating more than $10bn.
The report spans 11 markets including the UK, US, Germany, France, Japan, China, India and Australia, covering life, auto, home, property and casualty, health, reinsurance and broker organisations.
Among the questions put to respondents was what proportion of their budget they plan to allocate towards AI investment.
Two-thirds of insurance CEOs plan to allocate between 10% and 20% of their budget to AI investment
The results point to a sector making a firm financial commitment to AI.
The largest share of respondents, 67%, said they plan to allocate between 10% and 20% of their budget to AI.
A further 18% indicated they would spend less than 10%, while 13% plan to commit between 20% and 30%.
A small minority of 2% expect to allocate between 30% and 40% of their budget to the technology.
The data signals a sector moving beyond exploration, with most CEOs backing AI with meaningful budget and expecting returns within three years
Taken together, the data paints a picture of an industry that has moved well beyond exploratory AI investment.
Two thirds of insurance CEOs are directing a meaningful double-digit share of their budgets towards the technology, and a further 16% are committing even more.
That level of financial intent is striking, particularly given that 67% of CEOs in the same survey expect to see returns from their AI investments within one to three years.
Insurers are not simply experimenting.
They are placing considered bets on AI as a commercial value driver, with applications spanning claims processing, algorithmic underwriting and digital distribution.
The pressure to demonstrate returns quickly is real, and the budget allocations suggest most CEOs are prepared to back that conviction with meaningful resource.
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