The real challenge for insurers adopting AI does not lie in the availability of technology, but rather in the lack of expertise and institutional capabilities capable of operating and managing the technology, according to the Insurers' Federation of Egypti (IFE).
In its weekly bulletin released on 18 January, the IFE said that the required expertise is not limited to training models on data, but also includes the ability to interpret results, verify the reliability of input and output data, distinguish between accurate and inaccurate results, and provide constructive feedback that ensures improved performance of machine learning models and increased confidence in their output in the future.
Companies seeking to gain a real competitive advantage through AI intelligence need to build an integrated system that combines technology and qualified human resources.
The bulletin also said that the reinsurance sector has been slower in adopting modern technologies compared to other sectors, because of its highly regulated nature and a cautious corporate culture, in addition to the lack of a full understanding by some institutions of the potential benefits of AI, as well as the risks associated with it and cybersecurity requirements.
Highlighting the importance of AI, the bulletin said that AI applications impact reinsurance in several key areas, including improving risk assessment, accelerating claims analysis, and developing pricing models, which positively affect operational efficiency and technical results.