In the past year, generative AI (GenAI) has taken the technology world by storm, infiltrating every sector, including commercial insurance. With its remarkable capability to generate diverse content based on its training data, GenAI presents a myriad of potential applications in insurance, spanning underwriting, claims, and beyond. Today, majority of insurers are actively delving into GenAI, with many conducting up to 15 different proofs of concept or early-stage prototypes. The payoff could be huge: McKinsey predicts that generative AI could potentially unlock up to $1 trillion in annual value for the global insurance industry.

However, as the shift from concept to implementation gains momentum in the coming months, insurers will encounter significant challenges. Some may find these hurdles impede their efforts to leverage GenAI for competitive advantage. Yet, for others, the initial hype around this technology will give avenue to a more practical approach, allowing them to fully capitalize on what could arguably be the most influential technology of the next decade.