AI ROI in Insurance - Thought Leadership

Here is an introduction for a LinkedIn post for the Highbury Insights page:

Despite projections that AI could generate $1.1 trillion in annual value for the insurance industry, the landscape is littered with failed projects and unrealized returns. Studies show that 42% of enterprise AI deployments yield zero ROI, and a staggering 88% of proofs-of-concept never make it out of "pilot purgatory".

What is causing this industry-wide ROI crisis?

We're proud to announce a comprehensive new analysis,"AI ROI in Insurance: Building the Foundational AI Tier," co-authored by Highbury Insights' Principal, Cam Torstenson. This white paper, along with an executive overview and focused editions for carriers and distributors, confronts this "generative AI paradox" head-on.

The research argues that the problem isn't the technology—it's a flawed strategy. The prevailing approach of adopting disconnected "point solutions" has created a fragmented and inefficient technology ecosystem that prevents AI from delivering on its promise.

The solution is a strategic shift: moving from tactical tools to building a foundational AI Tier. This conversational operating system acts as a central intelligence hub, sitting between your core systems (PAS, AMS, CRM) and your engagement channels to orchestrate entire business processes from end to end.

By implementing this missing architectural layer, insurers can finally turn AI from a speculative cost center into a predictable profit center, built on three core pillars of measurable ROI:

• ✅Efficiency: Automate up to 46% of high-volume broker and policyholder inquiries.

  
  

• ✅Conversion: Generate a 25% or greater lift in lead conversion by replacing static web forms with dynamic, guided conversations.

  
  

• ✅Growth: Achieve up to a 60% conversion rate on personalized cross-sell and upsell offers presented at the perfect moment.

  
  

For insurance leaders looking to build a durable AI strategy that delivers real business value, this analysis provides a clear and pragmatic blueprint.