Executives from Azerbaijan’s life and non-life insurance industries visited Japan to examine advancements in technology, artificial intelligence (AI), and digitalisation within the sector.
The visit was coordinated by the Association of Insurers of Azerbaijan as part of an initiative to strengthen international cooperation and explore innovative practices in insurance.
During the trip, the Azerbaijani delegation engaged with key Japanese industry players (pictured), including:
The discussions focused on Japan’s approach to integrating AI and digital tools in underwriting, claims management, and risk assessment.
In addition to these meetings, the delegation met with Toyonari Sasaki, head of the Japan Association of Life Insurance Companies and a board member of the Global Federation of Insurance Associations (GFIA). The discussions covered potential areas for bilateral collaboration, knowledge-sharing opportunities, and strategies for developing the insurance industry in both markets.
A 2024 report by Earnix highlighted the growing impact of AI in insurance, with 70% of surveyed executives planning to deploy AI-driven models using real-time data within two years. This marks a significant shift from the current adoption rate, which stands at less than 30%.
AI’s increasing role in underwriting, claims automation, and pricing strategies reflects an industry-wide shift toward data-driven decision-making.
However, regulatory concerns are a major challenge. Over half of the executives surveyed reported that their companies had faced penalties or refund obligations due to compliance issues in the past year. In response, 70% of insurers plan to dedicate more time and resources to compliance management in the coming year.
Despite growing enthusiasm for AI adoption, insurers are facing delays in modernising their technology infrastructure. The Earnix study found that 58% of companies take more than five months to implement regulatory changes, while 21% require over seven months. Additionally, 49% of respondents acknowledged that their firms were behind in upgrading legacy systems, which is slowing down AI integration.
Robin Gilthorpe, CEO of Earnix, noted that while AI is transforming the industry, insurers must also navigate economic uncertainty, cybersecurity threats, and climate-related risks, all of which impact modernisation efforts.
The study, conducted in partnership with Market Strategy Group LLC, surveyed 431 insurance executives from North America, Europe, and Asia Pacific, including professionals in actuarial, analytics, product management, and IT roles.
