In today’s rapidly evolving landscape, property and casualty insurers find themselves at a pivotal juncture, akin to a digital battlefield. Echoing George Washington’s wisdom from 1799 that “offensive operations, oftentimes, is the surest, if not the only means of defense,” this sector stands at the forefront of a new era.
Executive Summary
AI's integration into the insurance industry has introduced a range of sophisticated threats: Deepfakes in insurance claims, advanced phishing attacks, the rapid spread of misinformation, the evolution of malware, and IP risks. Here, Celent Analyst Andrew Schwartz outlines offensive and defensive strategies for P/C insurers to adopt to combat multifaceted AI-driven threats, and leverage the power of AI in their operations.The advent of generative artificial intelligence (AI) and large language models like ChatGPT brings both unprecedented opportunities and formidable challenges. This article explores the essential defensive strategies that P/C insurers must adopt to combat the multifaceted threats in this AI-driven environment, while also examining the power of AI as a tool in their arsenal.
The Evolving Threat Spectrum
AI’s integration into the insurance industry has introduced a range of sophisticated threats. These include deepfakes in insurance claims, advanced phishing attacks, the rapid spread of misinformation, the evolution of malware, and intellectual property (IP) risks. Each threat demands a strategic and well-considered response.
