2025 will be the year when GenAI starts delivering real value in the re/insurance industry, particularly in customer service, but also in other areas, according to Adam Denninger, Global Insurance Industry Leader at Capgemini.
Denninger recently spoke with Reinsurance News in an interview, discussing a variety of topics, particularly AI and its role in the future of our industry.
“AI has been a part of the insurance industry for a long time, in one way or another, at different levels. The latest breakthroughs—such as GenAI and large language models—are enabling capabilities that weren’t possible before. This is a big step forward for us,” the executive said.
As an example, Denninger highlighted how AI now enables near-human conversations between customers and models.
For insurance companies, this means individuals can communicate with AI that possesses comprehensive industry knowledge, reportedly enhancing service quality and improving interactions in ways that were previously difficult to achieve.
“In recent years, there has been a lot of talk from AI providers about the imminent arrival of general AI, much of which turned out to be hype rather than reality,” Denninger added.
He continued, “However, what we are seeing now is the practical and valuable application of AI in insurance operations. AI itself isn’t a standalone solution; it’s part of the broader operational process. We’re discovering impactful ways to integrate it effectively.”
Beyond AI, Denninger also discussed the key challenges re/insurers will likely face in building and maintaining operational resilience in 2025.
“Addressing the negative perception of the industry has become critical, especially as it has led to serious consequences like physical threats and even acts of violence against industry members,” he said.
As per Denninger, often, the anger directed at the industry stems from “fundamental misunderstandings” of what it actually does.
He continued, “For executives facing these threats, the key question becomes: How do I need to adapt my business to deal with this? But beyond that, there’s also an operational resilience challenge—how do you stay focused on your core mission of providing coverage and protection from losses while navigating such a hostile environment?
“Insurance, at its core, is about sustainability, particularly social sustainability. If someone’s house burns down and they don’t have insurance, their entire life can be devastated beyond recovery.
“But with insurance, they have a starting point to rebuild. This makes the industry unique because it exists to help society remain stable. Unfortunately, many people don’t fully understand this role, which leads to misconceptions, misplaced frustration, and unfair criticism of the industry.”
Denninger concluded, “Given this landscape, insurance executives must figure out how to keep their teams focused on their essential work, delivering protection and support. This is a significant challenge that requires both resilience and strategic communication.”
