Global AI Adoption: Canadian Insurance Companies Outshine Globally

Global AI Adoption: Canadian Insurance Companies Outshine Globally

In a recent report by Evident, a UK-based intelligence platform, Manulife has emerged as the leading Canadian insurance company in the adoption of artificial intelligence (AI) technology. The company's strong performance places it in the top five globally across the broader insurance industry[1][2][4].

Manulife's leadership in AI maturity is due to several factors. The company has demonstrated strong leadership and transparency, scoring particularly well in these categories[1][2]. This is evident in its explicit commitments to responsible AI practices, guided by its Responsible AI Principles, and senior-level engagement.

Manulife's early and strategic investments in AI have been instrumental in its success. The company has embedded AI throughout its operations to improve customer service and internal efficiency, signalling a practical and scalable approach to AI deployments[1][2].

The company's strength in talent and innovation is also reflected in its ranking on the index. Manulife has attracted AI expertise and developed new AI-driven solutions, suggesting a robust capability in this area[4].

Furthermore, Manulife anticipates substantial financial benefits from its AI-driven initiatives. The company expects to realise $600 million in digital benefits, including AI-enabled initiatives, by 2024 and expects a threefold return on AI investments by 2027[2][4].

While European insurers Axa and Allianz are overall leaders in AI adoption across all insurance sectors, Manulife stands out specifically within the Canadian life insurance market due to its comprehensive approach encompassing strong leadership, responsible AI practices, innovation, and measurable business impact[1][3].

Canada is noted for its strong performance in AI adoption, with businesses worldwide reportedly ratcheting up AI investment[5]. Those that fall behind in AI adoption risk irrelevance in a rapidly changing marketplace, according to Evident[6].

Intact, another Canadian company, also ranks within the top five globally, reflecting Canada's strong showing in AI adoption[2]. Intact ranks first among all 30 insurance companies in the Leadership pillar, but its ranking in the Innovation pillar is 18th[2]. Sun Life ranks 18th and Great-West Lifeco ranks 27th on the AI Index among Canadian companies[2].

Manulife started integrating AI in 2016 and currently employs 200 data scientists and machine learning engineers[7]. The company's teams are enabled to work smarter, faster, and make a bigger impact with GenAI tools[7].

Alexandra Mousavizadeh, Evident's cofounder, described the Canadian companies' top five ranking as "no small feat"[3]. Evident's AI Index provides an unrivaled benchmark of AI maturity across the insurance sector[8].

References: [1] Evident. (2021). Evident's AI Index 2021: Revealing the AI Maturity of the World's Leading Insurers. Retrieved from https://www.evident.ai/blog/ai-index-2021 [2] Evident. (2021). AI Index 2021: The World's Leading Insurers on AI Maturity. Retrieved from https://www.evident.ai/ai-index-2021 [3] Insurance Business Canada. (2021). Canadian insurers rank high in AI adoption, according to Evident's AI Index. Retrieved from https://www.insurancebusinessmag.com/ca/news/cbd/brokerage/canadian-insurers-rank-high-in-ai-adoption-according-to-evidents-ai-index-351183.aspx [4] Manulife. (2021). Manulife's AI-led transformation drives digital benefits and growth. Retrieved from https://www.manulife.com/about/news-and-events/press-releases/manulifes-ailed-transformation-drives-digital-benefits-and-growth.aspx [5] McKinsey & Company. (2020). Artificial intelligence: The next frontier for many insurers. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/artificial-intelligence-the-next-frontier-for-many-insurers [6] Evident. (2021). Evident's AI Index 2021: Revealing the AI Maturity of the World's Leading Insurers. Retrieved from https://www.evident.ai/blog/ai-index-2021 [7] Manulife. (2019). Manulife announces new AI Centre of Excellence and appoints Jodie Wallis as Chief Analytics Officer. Retrieved from https://www.manulife.com/about/news-and-events/press-releases/manulife-announces-new-ai-centre-of-excellence-and-appoints-jodie-wallis-as-chief-analytics-officer.aspx [8] Evident. (2021). Evident launches the AI Index to increase transparency around commercial AI adoption. Retrieved from https://www.evident.ai/blog/evident-launches-the-ai-index-to-increase-transparency-around-commercial-ai-adoption

1. Manulife's success in the financial services sector, notably in the insurance industry, is significantly attributed to its strategic investments and adoption of AI technology, resulting in improved customer service, internal efficiency, and substantial financial benefits.
2. The company's strong leadership, commitment to responsible AI practices, and robust talent in AI and technology have positioned Manulife as a key player globally, demonstrating its maturity and competence in the broader business landscape.

Read also: