Global insurance consultancy and operations firm Xceedance has announced a strategic equity investment in Friendly, an artificial intelligence (AI) technology provider.
The partnership aims to accelerate the use of AI in underwriting and claims processing within the life and health insurance and reinsurance sectors.
Friendly’s technology platform converts diverse and complex medical datasets into structured, AI-optimised insights. It is used by underwriters and claims professionals across various insurance lines, including life, disability, critical illness, and long-term care, as well as casualty and reinsurance.
With this investment, Xceedance intends to strengthen its offering for life and health clients by supporting their digital transformation and improving operational efficiency across the insurance lifecycle.
Arun Balakrishnan (pictured), CEO of Xceedance, said the collaboration would help insurers enhance their decision-making with data-driven insights.
“Friendly’s AI-driven technology stands out for its ability to enhance underwriting and claims decisions with speed, accuracy, and security. This investment reflects the shared vision of Xceedance and Friendly to make life and health insurance operations more intelligent and efficient, and we look forward to collaborating on innovations that will benefit our clients worldwide,” he said.
Friendly CEO Natasha Alexeeva described the partnership as a strategic opportunity to expand market reach and technical capability.
“By partnering with Xceedance, we are gaining a strong strategic ally that understands the evolving needs of insurers. Together, we will advance our platform’s capabilities and expand into the L&H market, offering reinsurers and their primary clients cutting-edge AI solutions that improve operational efficiency,” she said.
The two firms plan to co-develop additional solutions in 2025, with further announcements anticipated. Their joint initiatives are expected to concentrate on embedding AI across core insurance workflows, targeting both insurers and reinsurers.
This move comes as insurers continue to grapple with how best to integrate AI and digital tools across their operations.
Recent data from ACORD’s 2025 Digital Maturity Study highlights the ongoing gap in digital adoption among major insurance carriers. The study found that just 25% of the world’s top insurers have fully digitalised their operations, while over 50% are still evaluating their approach.
A dedicated AI-focused section of the study estimates that more advanced use of AI technologies could deliver significant savings: up to $480 billion annually for the global property and casualty sector, and over $300 billion for life insurance.
Meanwhile, workforce readiness and governance remain ongoing challenges. Research from NTT Data, which surveyed over 2,000 senior executives globally, found that 80% of respondents believe leadership and governance frameworks are lagging behind the pace of AI innovation.
The findings also revealed a lack of organisational readiness: 72% of businesses do not yet have an AI policy, and more than two-thirds of executives noted a skills gap in AI capabilities among staff. These issues may impact the insurance industry’s ability to deploy AI responsibly and at scale.
